On February 1, 2021, Arrow Construction Company entered into a three-year construction contract to build a bridge for a price of $8,390,000. During 2021, costs of $2,130,000 were incurred with estimated costs of $4,130,000 yet to be incurred. Billings of $2,630,000 were sent, and cash collected was $2,380,000. In 2022, costs incurred were $2,630,000 with remaining costs estimated to be $3,795,000.2022 billings were $2,880,000 and $2,605,000 cash was collected. The project was completed in 2023 after additional costs of $3,930,000 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 "varlous 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. Reg1 Reg 2A Req 2B Req 3A Req 38 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.) Scomplete to date Percentages of completion Choose numerator Choose denominator Actual costs to date Estimated total costs 2130 000 $ 250.000 4.750.000 555.000 8,590.000 s 8.690.000 34 0264 Ts 55 5400% 100 00005 2021 Recognized prior years 202 MULAI UULS EU U CSI LULUS 2021 2022 2023 $ $ $ 34.0256% 55.6400% 100.0000% 2,130,000 + $ 6,260,000/= 4,760,000 $ 8,555,000 = 8,690,000 $ 8,690,000 2021 Recognized in prior years $ 0 $ 2,130,000 $ 0 $ $ 0 $ To date Construction revenue Construction expense Gross profit (loss) Recognized in 2021 0 2,130,000 2022 Recognized in prior years To date Recognized in 2022 Construction revenue Construction expense Gross profit (loss) 2023 Recognized in prior years To date Recognized in 2023 Construction revenue Construction expense Gross profit (loss) 0 0 Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req Req 3B Prepare journal entries for 2021 to record the transactions described (credit "various accounts for constructiu entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not calculations. Round your answers to the nearest dollar amount.) View transaction list Journal entry worksheet 1 2 3 4 Record the construction costs. Note: Enter debits before credits General Journal Debit Credit Year 2021 RES Record entry Clear entry View general journal Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 3A Req 3B Prepare journal entries for 2021 to record the transactions described (credit "various accounts for construction costs entry is required for a transaction/event, select "No journal entry required in the first account field. Do not round in calculations. Round your answers to the nearest dollar amount.) View transaction list ELE Journal entry worksheet W
