On February 1 2021. Arrow Construction Company entered into a three-year construction contract to build a bridge for a price of $8,000,000. During 2021, 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 2022, costs incurred were $2,500,000 with remaining costs estimated to be $3,600,000. 2022 billings were $2,750,000, and $2.475,000 cash was collected. The project was completed in 2023 after additional costs of $3,800,000 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. Req1 Req 2A Reg 28 Req3A Req38 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) Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 28 Req 3A Reg 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 complet Choose numerator + Choose denominator = % complete to date 2021 2022 2023 Recognized in prior years. Recognized in 2021 Construction revenue Construction expense Gross profit (loss) gnized in prior years Recognized in 2022 Construction revenue Construction expense Gross profit (loss) 2023 Recognized in prior years Recognized in 2023 Construction revenue Construction expense Gross profit loss) Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 2B Reg 3 Reg 3B Prepare journal entries for 2021 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.) View transaction list Journal entry worksheet 2 3 Record the construction costs. Note: Enter debits before credits General Journal Credit on wy entering your answers in the tabs below. Reg 1 Req 2A Reg 28 Req 3A Reg 38 Prepare journal entries for 2021 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.) View transaction list Journal entry worksheet
