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On February 1, 2024. Arrow Construction Company entered into a three-year construction contract to bulld a bridge for a price of $8,360,000. During 2024, costs

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On February 1, 2024. Arrow Construction Company entered into a three-year construction contract to bulld a bridge for a price of $8,360,000. During 2024, costs of $2,120,000 were incurred with estimated costs of $4,120,000 yet to be incurred. Billings of $2,620,000 were sent, and cash collected was $2,370,000. In 2025 , costs incurred were $2,620,000 with remaining costs estimated to be $3,780,000,2025 bilings were $2,870,000, and $2,595,000 cash was collected. The project was completed in 2026 after additional costs of $3.920,000 were incurred. The company's fiscal year-end is December 31. Arrow recognizes revenue over time according to percentage of completion. Required: 1. Calculate the amount of revenue and gross profit or loss to be recognized in each of the three years. 2n. Prepare joumal entries for 2024 to record the transactions described (credit "Cash, Materials, etc" for construction costs incurred). 2b. Prepare journal entries for 2025 to record the transactions described (credit "Cash, Materials, etc." for construction costs incuired). 3a. Prepare a partial balance sheet to show the presentation of the project as of December 31, 2024. 3b. Prepare a partial balance sheet to show the presentation of the project as of December 31,2025 , Complete this question by entering your answers in the tabs below. Prequare a partial balance shect to show the presentation of the profect as of December 31, 2025. Note: Do oot round intermediate calculations. Round your answers to the nearest dollar amiount. Complete this question by entering your answers in the tabs below. Prepare a partial balance sheet to show the presentation of the project as of December 31, 2025. Note: Do not round intermediate calculations. Round your answers to the nearest dollar amount. Prepare a partial balance sheet to show the presentation of the project as of December 31,2024. Note: Do not round intermediate calculations. Round your answers to the nearest dollar amount

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