On February 1, 2024 Arrow construction company entered into A three year construction contract to build a bridge for a price of $8,090,000. during 2024, costs of $2,030,000 were incurred with estimated cost of $4,030,000 Yeah to be incurred. Billings of $2,530,000 were sent and cash collected was $2,280,000.

in 2025 costs incurred were $2,530,000 with the remaining cost estimated to be $3,645,000. 2825 billings were $2,780,000 and $2,505,000 cash was collected. The project was completed in 2026 after two additional cost of $3,830,000 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.

2a. prepare journal entries for 2024 for it to record the transactions described (credit "cash, materials cash etc." for comstruction costs imcurred).

2b. prepare journal entries for 2025 for it to record the transactions described (credit "cash, materials cash etc." for comstruction costs imcurred).

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, 2024

(PLEASE EXPLAIN STEP BY STEP HOW YOU GOT THE FINAL ANSWER, so i can practice) thank you

On February 1, 2024, Arrow Construction Company entered into a three-year construction contratt to buld a bridge for a price of $8,090,000. Durning 2024, costs of $2,030,000 were incurred with estimated costs of $4,030,000 yet to be incurred. Billings of $2,530,000 were sent, and cash collected was $2,280,000. In 2025 , costs incurred were $2,530,000 with remaining costs estimated to be $3,645,000,2025 billings were $2,780,000, and $2,505,000 cash was collected. The project was completed in 2026 after additional costs of $3,830,000 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. 20. Prepare journal 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 incurred) 3o. 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. Calculate the amount of revenue and gross profit or loss to be recognized in each of the three years. Note: Do not round intermediate calculations. Loss amounts should be indicated with a minus sign. Round your final answers to the nearest whole dollat. 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. 2a. Prepare journal 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 incurred) 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. Prepare journal entries for 2025 to record the transactions described (credit "Cash, Materials, etc," for construction costs incurred). Note: 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. show lessa Journal entry worksheet