Exercise 6-22 (Algo) Long-term contract; revenue recognition upon project completion; loss projected on entire project (LO6-8, 6-9) On February 1, 2021, Arrow Construction Company entered into a three-year construction contract to build a bridge for a price of $8,350,000. During 2021, costs of $2,140,000 were incurred, with estimated costs of $4,140,000 yet to be incurred. Billings of $2,668,000 were sent, and cash collected was $2,390,000 In 2022, costs incurred were $2,668,000 with remaining costs estimated to be $3,810,000. 2022 billings were $2,918,000, and $2,615,000 cash was collected. The project was completed in 2023 after additional costs of $3,940,000 were incurred. The company's fiscal year-end is December 31. This project does not qualify for revenue recognition over time. Required: 1. Calculate the amount of revenue and gross profit or loss to be recognized in each of the three years. 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. es Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 28 Red 3A Reg 38 Calculate the amount of revenue and gross profit or loss to be recognized in each of the three years. (Loss amounts should be Indicated with a minus sign.) Year Revenue recognized Gross profit loss) recognized 2021 2022 2023 Total $ $ 0 Reg 2A > Complete this question by entering your answers in the tabs below. GEGEE Reg 1 Req 2A Req 28 Req 3A Req 3B Prepare journal entries for 2021 to record the transactions described (credit "various accounts for construction entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Complete this question by entering your answers in the tabs below. Req Reg 1 Reg 2A Reg 2B Reg 3B Prepare journal entries for 2021 to record the transactions described (credit "various accounts for construction entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Req 28 Req 3A Reg 3B Prepare journal entries for 2021 to record the transactions described (credit "various accounts" for constructio entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Complete this question by entering your answers in the tabs below. Reg 1 Req 2A Req 2B Req 3A Reg 3B Prepare journal entries for 2021 to record the transactions described (credit "various accounts" for construction cost entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Complete this question by entering your answers in the tabs below. Reg 1 Req 2A Req 2B Reg 3A Reg 3B Prepare journal entries for 2022 to record the transactions described (credit "various accounts for ce entry is required for a transaction/event, select "No journal entry required in the first account field. View transaction list Journal entry worksheet 4 Record the construction costs. Note: Enter debits before credits. Year General Journal Debit Credit 2022 Record entry Clear entry View general Journal 23 company's fiscal year-end is December 31. This project does not qualify for revenue recognition over time. Required: 1. Calculate the amount of revenue and gross profit or loss to be recognized in each of the three years. 2. 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. 15 Do ook Complete this question by entering your answers in the tabs below. Print Reg 1 Reg 2A Req 28 Reg SA Reg 38 Prepare a partial balance sheet to show the presentation of the project as of December 31, 2022. (Do not round Intermediate calculations. Round your answers to the nearest dollar amount.) References Balance Sheet At December 31, 2022 Current assets Current abilities