On February 1, 2021, Arrow Construction Company entered into a three-year construction contract to build a bridge for a price of $8,030,000. During 2021, costs of $2,010,000 were incurred with estimated costs of $4,010,000 yet to be incurred. Billings of $2,510,000 were sent, and cash collected was $2,260,000. In 2022, costs incurred were $2,510,000 with remaining costs estimated to be $3,615,000.2022 billings were $2.760,000 and $2,485,000 cash was collected. The project was completed in 2023 after additional costs of $3,810,000 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 Reg 2A Req 2B Req 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 Percentages of completion Choose numerator Choose denominator = sa complete to date s 2021 2022 S 33.3887% 55 5624% 100 0000% 2023 $ Book 2010 000 S 6,020,000 = 4,520 000 S 8. 135,000 8, 330,000 S 8330,000 2021 Recognized in prior years 2,681,113s 0 S 2,010,000 S 0 S 671,113 $ 0 S Print To date Recognized in 2021 2.681 113 erences S Construction revenue Construction expense Gross profit (loss) $ 2010,000 671 113 $ To date 2022 Recognized in prior years $ 2.681,113 S 2.010,000 $ 4.461 660 $ $ Construction revenue Construction expense Gross profit (loss) Recognized in 2022 1,780,547 (2,010,000) (671,113) S 671 113 S 2023 To date Recognized in prior years $ Construction revenue Construction expense Gross profit (loss) $ S S 8 030,000 8,330,000 (300,000) Recognized in 2023 8,030,000 8,330,000 (300,000) 5 S View transaction list View journal entry worksheet No Year General Journal Credit Debit 2,010,000 1 2021 Construction in progress Various accounts 2,010,000 2 2021 Accounts receivable Billings on construction contract 3 2021 2,260,000 Cash Accounts receivable 2,260,000 4 2021 Cost of construction Construction in progress Revenue from long-term contracts 2,010,000 671,113 2,681,113 No Year General Journal Debit Credit 1 2022 Construction in progress 2,010,000 Various accounts 2,010,000 es Balance Sheet (Partial) At December 31, 2021 Current assets Current liabilities: calculations. Round your answers to the nearest dollar amount. Balance Sheet (Partial) At December 31, 2022 Current assets Current liabilities: On February 1, 2021, Arrow Construction Company entered into a three-year construction contract to build a bridge for a price of $8,030,000. During 2021, costs of $2,010,000 were incurred with estimated costs of $4,010,000 yet to be incurred. Billings of $2,510,000 were sent, and cash collected was $2,260,000. In 2022, costs incurred were $2,510,000 with remaining costs estimated to be $3,615,000.2022 billings were $2.760,000 and $2,485,000 cash was collected. The project was completed in 2023 after additional costs of $3,810,000 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 Reg 2A Req 2B Req 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 Percentages of completion Choose numerator Choose denominator = sa complete to date s 2021 2022 S 33.3887% 55 5624% 100 0000% 2023 $ Book 2010 000 S 6,020,000 = 4,520 000 S 8. 135,000 8, 330,000 S 8330,000 2021 Recognized in prior years 2,681,113s 0 S 2,010,000 S 0 S 671,113 $ 0 S Print To date Recognized in 2021 2.681 113 erences S Construction revenue Construction expense Gross profit (loss) $ 2010,000 671 113 $ To date 2022 Recognized in prior years $ 2.681,113 S 2.010,000 $ 4.461 660 $ $ Construction revenue Construction expense Gross profit (loss) Recognized in 2022 1,780,547 (2,010,000) (671,113) S 671 113 S 2023 To date Recognized in prior years $ Construction revenue Construction expense Gross profit (loss) $ S S 8 030,000 8,330,000 (300,000) Recognized in 2023 8,030,000 8,330,000 (300,000) 5 S View transaction list View journal entry worksheet No Year General Journal Credit Debit 2,010,000 1 2021 Construction in progress Various accounts 2,010,000 2 2021 Accounts receivable Billings on construction contract 3 2021 2,260,000 Cash Accounts receivable 2,260,000 4 2021 Cost of construction Construction in progress Revenue from long-term contracts 2,010,000 671,113 2,681,113 No Year General Journal Debit Credit 1 2022 Construction in progress 2,010,000 Various accounts 2,010,000 es Balance Sheet (Partial) At December 31, 2021 Current assets Current liabilities: calculations. Round your answers to the nearest dollar amount. Balance Sheet (Partial) At December 31, 2022 Current assets Current liabilities