On February 1, 2021. Arrow Construction Company entered into a three-year construction contract to build a bridge for a price of $8120,000. During 2021, costs of $2.040,000 were incurred with estimated costs of $4,040,000 yet to be incurred. Billings of $2,540,000 were sent, and cash collected was $2.290,000 In 2022. costs incurred were $2540,000 with remaining costs estimated to be $3,660,000. 2022 billings were $2.790,000 and $2,515,000 cash was collected. The project was completed in 2023 after additional costs of $3,840,000 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 36. Prepare a partial balance sheet to show the presentation of the project as of December 31, 2022 Answer is not complete. Rea 1 Reg 2A Reg 28 Req3A Reg 30 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 to date ls 2021 2022 2023 Percentages of completion Choose numerator Choose denominator Actual costs to date Estimated total costs 2,040,000 S 5.080,000 4.580,000 $ 8.240,000 8,420,000 $ 8,420.000 2021 To date Recognized in prior years 2,724,474 S 019 2.040.000 08 684,474 0 IS 33 5520% 55 5825% 100 0000% 13 15 Construction revenue Construction expense Gross profit() Recognized in 2021 2.724,474 2.040.000 884,474 S s 0 IS Construction revenue Construction expense Gross profit (loss) s 5 2022 To date Recognized in prior years 4.513,301 S 0 % 03 Recognized in 2022 4.513,301 0 0 0. S S 2023 Recognized in prior years To date 8.120.000 Recognized in 2023 8.120.000 IS Construction revenue Construction expense Gross profit (los) 0S $ 0X18 0 15 0 % R1 Rug 2A 28 RAQ 3A R3e 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.) Vw ruchom Journal entry worksheet 2 > ccord the construction costs Note de bord General Journal Debit Credit Year 2021 Reg 1 Reg 2A Reg 28 Red 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 1 2 3 4 Record the cash collections. Note: Enter bits before credit General Journal Debit Credit Year 2021 Record entry Ckar entry View ( l journal Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 2B Reg 3A Reg 3B Prepare journal entries for 2021 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. Do not round intermediate calculations. Round your answers to the nearest dollar amount.) View transaction list Journal entry worksheet Reg 1 Reg 2A Reg 2B Reg 3A Reg 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 Current liabilities
