On February 1, 2018, Arrow Construction Company entered into a three-year construction contract to build a bridge for a price of $8,000,000. During 2018, costs of $2,000,000 were incurred, with estimated costs of $4,000,000 yet to be incurred. Billings of $2,500,000 were sent, and cash collected was $2,250,000. In 2019, costs incurred were $2,500,000 with remaining costs estimated to be $3,600,000. 2019 billings were $2,750,000, and $2,475,000 cash was collected. The project was completed in 2020 after additional costs of $3,800,000 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 2018 to record the transactions described (credit "various accounts for construction costs incurred). 2b. Prepare journal entries for 2019 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, 2018. 3b. Prepare a partial balance sheet to show the presentation of the project as of December 31, 2019 Required: 1. Calculate the amount of revenue and gross profit or loss to be recognized in each of the three yea 2a. Prepare journal entries for 2018 to record the transactions described (credit "various accounts" for 2b. Prepare journal entries for 2019 to record the transactions described (credit "various accounts" for 3a. Prepare a partial balance sheet to show the presentation of the project as of December 31, 2018. 3b. Prepare a partial balance sheet to show the presentation of the project as of December 31, 2019. Complete this question by entering your answers in the tabs below. Reg 1 Req 2A Req 2B Req 3A Req 3B Calculate the amount of revenue and gross profit or loss to be recognized in each of the three years. (Loss a indicated with a minus sign.) Year Revenue recognized Gross profit (loss) recognized 2018 2019 2020 Total $ Reg 2A > LUPICE UND YUBUR CIRURITY your CHDWEID HIILITE LAUS VIUW Reg 1 Req 2A Req 2B Req 3A Req 3B Prepare journal entries for 2018 to record the transactions described (credit "various accounts for construction costs incurred) entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list 1 Record the construction costs. 2 Record the progress billings. 3 Record the cash collections 4 Record the expected loss. Credit Note: journal entry has been entered wapres YULIUS Uy Ly you Reg 1 Reg 2A Req 2B Req Reg 3B Prepare journal entries for 2019 to record the transactions described (credit "various accounts for construction costs incurred) entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list ences 1 Record the construction costs. 2 Record the progress billings. 3 Record the cash collections. 4 Record the expected loss. Credit Note : - Journal entry has been entered pree HD queDLI VE GREEHy yuui 0113 WEID HELIC LAUS VEIV Reg 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, 2018. (Do notre calculations. Round your answers to the nearest dollar amount.) Balance Sheet At December 31, 2018 Current assets: nces Current liabilities: ( Req 2B Reg 3 > PIELE LIID YULUIWy CILII your all WEID III LIIG LOUD VUIUV. 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, 2019. (Don calculations. Round your answers to the nearest dollar amount.) ok Balance Sheet At December 31, 2019 nt Current assets: ences Current liabilities: Reg 3A Reg 3
