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On February 1, 2018, Arrow Construction Company entered into a three-year construction contract to build a bridge for a price of $8,050,000. During 2018, costs

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On February 1, 2018, Arrow Construction Company entered into a three-year construction contract to build a bridge for a price of $8,050,000. During 2018, costs of $2,020,000 were incurred, with estimated costs of $4,020,000 yet to be incurred. Billings of $2,524,000 were sent, and cash collected was $2,270,000. In 2019, costs incurred were $2,524,000 with remaining costs estimated to be $3,630,000. 2019 billings were $2,774,000, and $2,495,000 cash was collected. The project was completed in 2020 after additional costs of $3,820,000 were incurred. The company's fiscal year-end is December 31. This project does not qualify for revenue recognition over time. Required: 1. Calculate the amount of revenue and gross profit or loss to be recognized in each of the three years. cuca the ant of revenue and gross prot rlosstobe recognized in each of the es 2a. Prepare journal entries for 2018 to record the transactions described (credit "various accounts for construction costs incurred) 2b. Prepare journal entries for 2019 to record the transactions described (credit "various accounts" for construction costs incurred). 3a. Prepare a partial balance sheet to show the presentation of the project as of December 31, 2018. 3b. Prepare a partial balance sheet to show the presentation of the project as of December 31, 2019 Complete this question by entering your answers in the tabs below. Complete thls question by entering your answers in the tabs below. ints Req 2B Req 3A Req 38 eBook Print References Req 1 Req 2A Calculate the amount of revenue and gross profit or loss to be recognized in e indicated with a minus sign.) RevenueGross profit (loss) recognized Year 2018 2019 2020 Total$ recognized 0 $ 663,300 View transaction list Journal entry worksheet 2 3 4 Record the construction costs. Note: Enter debits before credits. Year General Journal Debit Credit 2018 Record entry Clear entry View general journal

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