On February 1, 2021, Arrow Construction Company entered into a three-year construction contract to build a bridge for a price of $8,420,000. During 2021, costs of $2,140,000 were incurred with estimated costs of $4,140,000 yet to be incurred. Billings of $2,640,000 were sent, and cash collected was $2,390,000. In 2022, costs incurred were $2,640,000 with remaining costs estimated to be $3,810,000. 2022 billings were $2,890,000 and $2,615,000 cash was collected. The project was completed in 2023 after additional costs of $3,940,000 were incurred. The companys 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.

NEED HELP WITH THE WRONG ANSWERS AND PARTIAL INCOME STATEMENT

% complete to date 2021 $ Percentages of completion Choose numerator Choose denominator Actual costs to date Estimated total costs 2,140,000 $ 6,280,000 = 4,780,000+ $ 8,590,000= 8,720,000 $ 8,720,000 2021 . 34.0764% 55.6461% 2022 $ 2023 $ 100.0000% To date Recognized in prior years $ 0 $ Construction revenue Construction expense Gross profit (loss) 2,869,236 $ 2,140,000 $ 729,236 $ $ Recognized in 2021 2,869,236 2,140,000 729,236 0 $ OOO $ 0 $ 2022 To date 4,685,730$ Construction revenue $ Recognized in prior years 2,869,236 $ 2,140,000 $ 729,236 $ Recognized in 2022 1,816,494 (2,140,000) (729,236) $ 0 x $ Construction expense Gross profit (loss) $ 0 X $ 2023 To date Recognized in prior years 4,685,402 $ $ $ Construction revenue Construction expense Recognized in 2023 3,734,598 8,720,000 8,420,000 8,720,000 (300.000) $ $ 0 Gross profit (loss) IS 0 X $ (300.000) Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req Req 3B Prepare a partial balance sheet to show the presentation of the project as of December 31, 2021. (Do not round intermediate calculations. Round your answers to the nearest dollar amount.) Balance Sheet (Partial) At December 31, 2021 Current assets: Accounts receivable 250,000 Costs and profit in excess of billings Current liabilities: Complete this question by entering your answers in the tabs below. 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, 2022. (Do not round intermediate calculations. Round your answers to the nearest dollar amount.) Balance Sheet (Partial) At December 31, 2022 Current assets: Accounts receivable 525,000 Current liabilities: Billings in excess of costs less loss