On February 1, 2021, Arrow Construction Company entered into a three-year construction contract to build a bridge for a price of $8,510,000. During 2021, costs of $2,170,000 were incurred with estimated costs of $4,170,000 yet to be incurred. Billings of $2,670,000 were sent, and cash collected was $2,420,000. In 2022, costs incurred were $2,670,000 with remaining costs estimated to be $3,855,000. 2022 billings were $2,920,000 and $2,645,000 cash was collected. The project was completed in 2023 after additional costs of $3,970,000 were incurred. The companys fiscal year-end is December 31. Arrow recognizes revenue over time according to percentage of completion.

1)Prepare a partial balance sheet to show the presentation of the project as of December 31, 2022.

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Additional information:

Balance Sheet (Partial) At December 31, 2022 Current assets: Accounts receivable $ $ 525,000 0 0 0 Current liabilities: Billings in excess of costs less loss $ 1,095,707 X 0 0 Percentages of completion Choose numerator . Choose denominator = % complete to date Actual costs to date Estimated total costs 2021 $ $ = II 34.2271% 2022 $ 2,170,000 - 4,840,000 - 8,810,000 $ 6,340,000 8,695,000 8,810,000 55.6642% 2023 $ $ 100.0000% 2021 To date Recognized in prior years Construction revenue $ 2,912,729 $ 0 $ Recognized in 2021 2,912,729 2,170,000 742,729 $ $ 0 $ Construction expense Gross profit (loss) 2,170,000 742,729 $ $ 0 $ 2022 To date Construction revenue $ $ $ Recognized in prior years 2,912,729 2,170,000 742,729 Recognized in 2022 1,824,292 2,752,021 (927,729) 4,737,021 4,922,021 (185,000) $ $ Construction expense Gross profit (loss) $ $ $ $ 2023 To date Construction revenue $ Recognized in prior years 4,737,021 $ 4,922,021 $ (185,000) $ Recognized in 2023 3,772,979 3,887,979 (115,000) 8,510,000 $ 8,810,000 $ (300,000) $ Construction expense $ Gross profit (loss) $ Year General Journal Debit Credit 2021 Construction in progress 2,170,000 Various accounts 2,170,000 2021 Accounts receivable 2,670,000 Billings on construction contract 2,670,000 2021 Cash 2,420,000 Accounts receivable 2,420,000 2021 Cost of construction O 2,170,000 Construction in progress 742,729 Revenue from long-term contracts 2,912,729 Year General Journal Debit Credit 2022 Construction in progress 2,670,000 Various accounts 2,670,000 2022 Accounts receivable 2,920,000 Billings on construction contract 2,920,000 2022 Cash 2,645,000 Accounts receivable 2,645,000 2022 Cost of construction 2,752,021 Construction in progress 927,729 Revenue from long-term contracts 1,824,293