In question Req 1 shouldn't construction expense be $4,880,000 it is saying its wrong. I assumed the calculation is $2,190,000+ $2,690,000 = $4,880,000 it is
In question Req 1 shouldn't construction expense be $4,880,000 it is saying its wrong. I assumed the calculation is $2,190,000+ $2,690,000 = $4,880,000 it is saying its wrong. Please someone help I have been trying for many hours. Please also help with Req 2B and Req 3B.where the it is marked red is considered incorrect. Also please provide explaination behind your results. Thanks. 
On February 1, 2021, Arrow Construction Company entered into a three-year construction contract to build a bridge for a price of $8,570,000. During 2021, costs of $2.190,000 were incurred with estimated costs of $4,190,000 yet to be incurred. Billings of $2,690,000 were sent, and cash collected was $2,440,000. In 2022, costs incurred were $2,690,000 with remaining costs estimated to be $3,885,000. 2022 billings were $2,940,000 and $2,665,000 cash was collected. The project was completed in 2023 after additional costs of $3,990,000 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. Answer is not complete. Complete this question by entering your answers in the tabs below. Dann DADA Dann Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 2B Reg 3A Req 3B 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.) Percentages of completion Choose numerator Choose denominator % complete to date 2021 $ - 2022 . $ $ 34 3260% 55.6760% 100.0000% 2023 2,190,000 $ 6,380,000 = 4,880,000 $ 8,765,000 8,870,000 $ 8,870,000 2021 To date Recognized in prior years 2,941,740$ 0$ 2,190,000 $ 0$ 751,740$ 0$ Construction revenue Construction expense Gross profit (loss) $ $ $ Recognized in 2021 2,941,740 2,190,000 751,740 13 Us Construction expense Gross profit (loss) 2,19UUUU 751,740 2,190,000 751,740 $ 0$ $ Construction revenue Construction expense Gross profit (loss) 2022 To date Recognized in prior years 4,771,433$ 2,941,740$ 4,880,000 X $ 2,190,000 $ (108,567) $ 751,740$ Recognized in 2022 1,829,693 2,690,000 (860,307) $ 2023 $ Construction revenue Construction expense Gross profit (loss) To date 8,570,000 $ 8,870,000 $ (300,000 $ Recognized in prior years 4,771,432$ 4,966,433$ (195,000 $ Recognized in 2023 3,798,568 3,903,567 (105,000) $ $ Reg 1 Req 2A Req 2B Req 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" in the first account field. Do not round intermediate calculations. Round your answers to the nearest dollar amount.) No Credit Year 2022 General Journal Construction in progress Various accounts Debit 2,690,000 1 2,690,000 2 2 2022 2,940,000 Accounts receivable Billings on construction contract >> 2,940,000 3 2022 2,665,000 Cash Accounts receivable 2,665,000 4 2022 2,690,000 Cost of construction Construction in progress Revenue from long-term contracts 860,307 1,829,692 > Reg 1 Reg 2A Reg 2B Reg 3 Reg 3B 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.) Balance Sheet (Partial) At December 31, 2022 Current assets: Accounts receivable 525,000 Current liabilities: Billings in excess of costs less loss 858,567
