How to calculate "Billings in excess of costs less loss" ($935,000) in the Balance Sheet (Partial) on Req 3B? Could you please also specify where the number in the question or table you got from? Thank you in advance.
For example: Costs and profit in excess of billings (in Req 3A) = Construction revenue 2021 - Billing during the year 2021
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On February 1, 2021, Arrow Construction Company entered into a three-year construction contract to build a bridge for a price of $8,510,000. During 2021, costs of $2,170,000 were incurred with estimated costs of $4,170,000 yet to be incurred. Billings of $2,670,000 were sent, and cash collected was $2,420,000.
In 2022, costs incurred were $2,670,000 with remaining costs estimated to be $3,855,000. 2022 billings were $2,920,000 and $2,645,000 cash was collected. The project was completed in 2023 after additional costs of $3,970,000 were incurred. The company's fiscal year-end is 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.
Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 3A Req BB Compute the amount of revenue and gross profit or loss to be recognized in 2021, 2022, and 2023 using the percentage of completion method. (Do not round intermediate calculations. Loss amounts should be indicated with a minus sign, Round your final answers to the nearest whole dollar.) Choose numerator + Choose denominator = % complete to date Actual costs to date 0 Estimated total costs 0 2021 $ 2,170,0000 + $ 6,340,0000 = 34.2271% 2022 $ 4,340,0000 + $ 8,695,0000 = 55.6642% 2023 $ 8,810,0000 8,810,0000 100.0000% | Construction revenue 2,912,7260 5 2,912,726 Construction expense 3; 2,170,0000 $ 00 $ 2,170,000 Gross prot (loss) as 742,7260 $ 00 $ 742,725 Construction revenue as 4,737,0230 $ 2912,7260 $ 1,824,297 Construction expense 5 49220230 $ 2170,0000 $ 2,752,023 Gross prot (loss) as (185,000)0 5 7427260 $ (927,726) Construction revenue 3; 8.5100000 4,737,0230 $ 3,772,977 Construction expense 3 8,810,0000 $ 4,922,0230 $ 3,887,977 Gross prot (loss) as (300,000)0 $ (185,000)0 $ (115,000) Req 2A > 0 Answer is complete and correct. Complete this question by entering your answers in the tabs below. ' Req 1 Req 2A ' Req ZB Req 3A ' Req 3B Prepare journal entries for 2021 to record the transactions described (credit "various accounts" for construction costs incurred). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your answers to the nearest dollar amount.) 1 2021 Construction in progress a 2,170,0000 Various accounts a 2,170,0000 2 2021 Accounts receivable 0 2670,0000 Billings on construction contract a 2,670,0000 3 2021 Cash 0 2420,0000 Accounts receivable a 2,420,0000 4 2021 Construction in progress 0 7427260 Cost of construction 0 2170,0000 Revenue from longterm contracts a 2912,7269 0 Answer is complete and correct. Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req ZB Req 3A Req 3B ' Prepare journal entries for 2022 to record the transactions described (credit "various accounts" for construction costs incurred). (If no entry is required for a transaction/event, select "No journal entry required'l in the first account field. Do not round intermediate calculations. Round your answers to the nearest dollar amount.) 1 2022 Construction in progress a 2670,0000 Various accounts 0 2,670,000 a 2 2022 Accounts receivable Q 2920,0000 Billings on construction contract a 2320,0000 3 2022 Cash 0 2645,0000 Accounts receivable 0 2,645,000 a 4 2022 Cost of construction a 2752,0239 Revenue from longterm contracts 0 1,824,297 0 Construction in progress 0 927.7260 Answer is complete and correct. Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 3A Req 3B Prepare a partial balance sheet to show the presentation of the project as of December 31, 2021. (Do not round intermediate calculations. Round your answers to the nearest dollar amount.) Balance Sheet (Partial) At December 31, 2021 Current assets: Accounts receivable V $ 250,000 Costs and profit in excess of billings V 242,726 V Current liabilities: 0 Answer is complete and correct. Complete this questiOn by entering your answers in the tabs below. Req 2B Req 3A Req 3B Req 1 Req 2A 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.) Current assets: Accounts receivable o $ 525,0009 Current liabilities: Billings in excess of costs less loss 0 $ 9350000
