On February 1, 2021, Arrow Construction Company entered into a three-year construction contract to build a bridge for a price of $8,600,000. During 2021, costs of $2,200,000 were incurred with estimated costs of $4,200,000 yet to be incurred. Billings of $2,700,000 were sent, and cash collected was $2,450,000. In 2022, costs incurred were $2,700,000 with remaining costs estimated to be $3,900,000. 2022 billings were $2,950,000 and $2,675,000 cash was collected. The project was completed in 2023 after additional costs of $4,000,000 were incurred. The companys fiscal year-end is December 31. Arrow recognizes revenue over time according to percentage of completion. Required: 2b. Prepare journal entries for 2022 to record the transactions described (credit "various accounts" for construction costs incurred).

ournal entry worksheet

• Record the construction costs.

Note: Enter debits before credits.

Year	General Journal	Debit	Credit
2022

Journal entry worksheet

• Record the progress billings.

Note: Enter debits before credits.

Year	General Journal	Debit	Credit
2022

ournal entry worksheet

• Record the cash collections.

Note: Enter debits before credits.

Year	General Journal	Debit	Credit
2022

Journal entry worksheet

• Record the gross profit or loss.

Note: Enter debits before credits.

Year	General Journal	Debit	Credit
2022