Exercise 6-21 (Algo) Long-term contract; revenue recognition over time; loss projected on entire project [LO6-9] On February 1, 2021. Arrow Construction Company entered into a three-year construction contrad to build a bridge for a price of $8,120,000. During 2021, costs of $2,040,000 were incurred with estimated costs of $4.040,000 yet to be incurred Billings of $2,540,000 were sent, and cash collected was $2,290,000. In 2022, costs incurred were $2,540,000 with remaining costs estimated to be $3,660,000.2022 billings were $2.790,000 and $2,515,000 cash was collected. The project was completed in 2023 after additional costs of $3.840.000 were incurred. The company's fiscal year-endis December 31. Arrow recognizes revenue over time according to percentage of completion Required: 1. Compute the amount of revenue and gross profit or loss to be recognized in 2021 2022 and 2023 using the percentage of completion method 2a. Prepare journal entries for 2021 to record the transactions described (credit various accounts for construction costs incurred). 2b. Prepare journal entries for 2022 to record the transactions described (credit various accounts for construction costs incurred) 3a. Prepare a partial balance sheet to show the presentation of the project as of December 31, 2021. 3b. Prepare a partial balance sheet to show the presentation of the project as of December 31, 2022 Req 1 Reg 2A Reg 2B Req 3A Req 3B Compute the amount of revenue and gross profit or loss to be recognized in 2021 2022 and 2023 using the perc completion method. (Do not round Intermediate calculations. Los amounts should be indicated with a minussian answers to the nearest whole dollar.) Percentages of completion Choose numerator Choose denominator % complete to date 2021 2022 2023 ololo To date Recognized in prior years Recognized in 2021 Construction revenue Construction expense Gross profit (los) 2022 Recognized in prior years To dete Recognized in 2022 Construction revenue Construction expense Gross profit (los) 2023 Recognized in prior years Recognized in 2023 Construction revenue Construction expense Gross profit (loss) Reg 1 Reg 2A Reg 2B Req 3A Req 3B Prepare journal entries for 2021 to record the transactions described (credit "various account no entry is required for a transaction/event, select "No journal entry required" in the first ac intermediate calculations. Round your answers to the nearest dollar amount) View transaction list Journal entry worksheet 1 2 3 4 Record the construction costs. Note: Enter debits before credits. Year General Journal Debit Credit 2021 Req 1 Req 2A Req 2B Req 3A Req 3B Prepare journal entries for 2022 to record the transactions described (credit "various accou no entry is required for a transaction/event, select "No journal entry required" in the first a intermediate calculations. Round your answers to the nearest dollar amount.) View transaction list Journal entry worksheet 2 3 4 Record the construction costs. Note: Enter debits before credits. General Journal Debit Credit Year 2022 Reg 1 Req 2A Req 2B Req 3A Req 3B Prepare a partial balance sheet to show the presentation of the proje intermediate calculations. Round your answers to the nearest dollar Balance Sheet (Partial ) At December 31, 2021 Current assets: Current liabilities: Req 1 Req 2A Req 2B Reg 3A Reg 3B Prepare a partial balance sheet to show the presentation of the project intermediate calculations. Round your answers to the nearest dollar am Balance Sheet (Partial) At December 31, 2022 Current assets: Current liabilities: Exercise 6-21 (Algo) Long-term contract; revenue recognition over time; loss projected on entire project [LO6-9] On February 1, 2021. Arrow Construction Company entered into a three-year construction contrad to build a bridge for a price of $8,120,000. During 2021, costs of $2,040,000 were incurred with estimated costs of $4.040,000 yet to be incurred Billings of $2,540,000 were sent, and cash collected was $2,290,000. In 2022, costs incurred were $2,540,000 with remaining costs estimated to be $3,660,000.2022 billings were $2.790,000 and $2,515,000 cash was collected. The project was completed in 2023 after additional costs of $3.840.000 were incurred. The company's fiscal year-endis December 31. Arrow recognizes revenue over time according to percentage of completion Required: 1. Compute the amount of revenue and gross profit or loss to be recognized in 2021 2022 and 2023 using the percentage of completion method 2a. Prepare journal entries for 2021 to record the transactions described (credit various accounts for construction costs incurred). 2b. Prepare journal entries for 2022 to record the transactions described (credit various accounts for construction costs incurred) 3a. Prepare a partial balance sheet to show the presentation of the project as of December 31, 2021. 3b. Prepare a partial balance sheet to show the presentation of the project as of December 31, 2022 Req 1 Reg 2A Reg 2B Req 3A Req 3B Compute the amount of revenue and gross profit or loss to be recognized in 2021 2022 and 2023 using the perc completion method. (Do not round Intermediate calculations. Los amounts should be indicated with a minussian answers to the nearest whole dollar.) Percentages of completion Choose numerator Choose denominator % complete to date 2021 2022 2023 ololo To date Recognized in prior years Recognized in 2021 Construction revenue Construction expense Gross profit (los) 2022 Recognized in prior years To dete Recognized in 2022 Construction revenue Construction expense Gross profit (los) 2023 Recognized in prior years Recognized in 2023 Construction revenue Construction expense Gross profit (loss) Reg 1 Reg 2A Reg 2B Req 3A Req 3B Prepare journal entries for 2021 to record the transactions described (credit "various account no entry is required for a transaction/event, select "No journal entry required" in the first ac intermediate calculations. Round your answers to the nearest dollar amount) View transaction list Journal entry worksheet 1 2 3 4 Record the construction costs. Note: Enter debits before credits. Year General Journal Debit Credit 2021 Req 1 Req 2A Req 2B Req 3A Req 3B Prepare journal entries for 2022 to record the transactions described (credit "various accou no entry is required for a transaction/event, select "No journal entry required" in the first a intermediate calculations. Round your answers to the nearest dollar amount.) View transaction list Journal entry worksheet 2 3 4 Record the construction costs. Note: Enter debits before credits. General Journal Debit Credit Year 2022 Reg 1 Req 2A Req 2B Req 3A Req 3B Prepare a partial balance sheet to show the presentation of the proje intermediate calculations. Round your answers to the nearest dollar Balance Sheet (Partial ) At December 31, 2021 Current assets: Current liabilities: Req 1 Req 2A Req 2B Reg 3A Reg 3B Prepare a partial balance sheet to show the presentation of the project intermediate calculations. Round your answers to the nearest dollar am Balance Sheet (Partial) At December 31, 2022 Current assets: Current liabilities