On February 1, 2016, Arrow Construction Company entered into a three-year construction contract to build a bridge for a price of $8,390,000. During 2016, costs of $2,130,000 were incurred with estimated costs of $4,130,000 yet to be incurred. Billings of $2,630,000 were sent and cash collected was $2,380,000. In 2017, costs incurred were $2,630,000 with remaining costs estimated to be $3,795,000. 2017 billings were $2,880,000 and $2,605,000 cash was collected. The project was completed in 2018 after additional costs of $3,930,000 were incurred. The companys fiscal year-end is December 31. Arrow recognizes revenue over time according to percentage of completion.

PLEASE ANSWER WHAT IS ASKED

REQUIREMENTS:

a) Create a journal entry to record the gross profit for year 2017

b) Prepare a partial balance sheet to show the presentation of the project as of December 31, 2017.

c) Complete the following chart with the missing information

YEAR 2016

	To date	Recognized in prior years	recognized in 2016
Construction revenue	$2,854,744	$0	$2,854,744
Construction expense	$2,130,000	$0	$2,130,000
Gross Profit (loss)	$724,744	$0	$724,744
YEAR 2017	To date	Recognized in prior years	recognized in 2017
Construction revenue		$2,854,744
Construction expense		$2,130,000
Gross Profit (loss)		$724,744
YEAR 2018	To date	Recognized in prior years	recognized in 2018
Construction revenue
Construction expense
Gross Profit (loss)