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In 2022. costs incurred were $2,530.000 with remaining costs estimated to be $3,645,000. 2022 billings were $2,780,000 and $2,505,000 cash was collected. The project was completed in 2023 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. 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 "various 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 Answer is not complete. Complete this question by entering your answers in the tabs below. Req 2B Req 1 Req 2A Req 3A Req 3B 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.) Percentages of completion Choose numerator Choose denominator 9% complete to date Actual costs to date Estimated total costs 2,030,000 2021 S 6,080,000 33.4983% = 8,205,000 2022 S 4,560,000 S 55.5759% = 8,390,000 2023 8,390,000 100.0000% 2021 To date Recognized in prior years Recognized in 2021 Construction revenue 2,710,017 0 S 2,710,017 2,030,000 s Construction expense 2,030,000 0 S 0S Gross profit (loss) 0 2022 Recognized in prior years Recognized in 2022 To date 0S Construction revenue 0 S Construction expense S 0 Gross profit (loss) 0 0 2022 Recognized in prior years Recognized in 2023 To date Construction revenue 0 S Construction expense S 8,390,000 0 8,390,000 Gross profit (loss) 0 0 Req 2A Req 1 Complete this question by entering your answers in the tabs below. Req 2A Req 1 Req 2B Req 3A Req 3B Prepare journal entries for 2021 to record the transactions described (credit "various accounts" for construction costs incurred). (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.) No Year General Journal Debit Credit Req 1 Req 2B Complete this question by entering your answers in the tabs below. Req 2A Req 3B Req 1 Req 2B Req 3A Prepare journal entries for 2022 to record the transactions described (credit "various accounts" for construction costs incurred). (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.) No Year General Journal Debit Credit Req 2A Req 3A Complete this question by entering your answers in the tabs below. Req 3B Req 1 Req 2A Req 2B Req 3A Prepare a partial balance sheet to show the presentation of the project as of December 31, 2021. (Do not round intermediate calculations. Round your answers to the nearest dollar amount.) Balance Sheet (Partial) At December 31, 2021 Current assets: Current liabilities Req 2B Req 3B Complete this question by entering your answers in the tabs below. Req 3A Req 3B Req 1 Req 2A Req 2B Prepare a partial balance sheet to show the presentation of the project as of December 31, 2022. (Do not round intermediate calculations. Round your answers to the nearest dollar amount.) Balance Sheet (Partial) At December 31, 2022 Current assets Current liabilities Req 3A Req 3B In 2022. costs incurred were $2,530.000 with remaining costs estimated to be $3,645,000. 2022 billings were $2,780,000 and $2,505,000 cash was collected. The project was completed in 2023 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. 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 "various 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 Answer is not complete. Complete this question by entering your answers in the tabs below. Req 2B Req 1 Req 2A Req 3A Req 3B 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.) Percentages of completion Choose numerator Choose denominator 9% complete to date Actual costs to date Estimated total costs 2,030,000 2021 S 6,080,000 33.4983% = 8,205,000 2022 S 4,560,000 S 55.5759% = 8,390,000 2023 8,390,000 100.0000% 2021 To date Recognized in prior years Recognized in 2021 Construction revenue 2,710,017 0 S 2,710,017 2,030,000 s Construction expense 2,030,000 0 S 0S Gross profit (loss) 0 2022 Recognized in prior years Recognized in 2022 To date 0S Construction revenue 0 S Construction expense S 0 Gross profit (loss) 0 0 2022 Recognized in prior years Recognized in 2023 To date Construction revenue 0 S Construction expense S 8,390,000 0 8,390,000 Gross profit (loss) 0 0 Req 2A Req 1 Complete this question by entering your answers in the tabs below. Req 2A Req 1 Req 2B Req 3A Req 3B Prepare journal entries for 2021 to record the transactions described (credit "various accounts" for construction costs incurred). (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.) No Year General Journal Debit Credit Req 1 Req 2B Complete this question by entering your answers in the tabs below. Req 2A Req 3B Req 1 Req 2B Req 3A Prepare journal entries for 2022 to record the transactions described (credit "various accounts" for construction costs incurred). (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.) No Year General Journal Debit Credit Req 2A Req 3A Complete this question by entering your answers in the tabs below. Req 3B Req 1 Req 2A Req 2B Req 3A Prepare a partial balance sheet to show the presentation of the project as of December 31, 2021. (Do not round intermediate calculations. Round your answers to the nearest dollar amount.) Balance Sheet (Partial) At December 31, 2021 Current assets: Current liabilities Req 2B Req 3B Complete this question by entering your answers in the tabs below. Req 3A Req 3B Req 1 Req 2A Req 2B Prepare a partial balance sheet to show the presentation of the project as of December 31, 2022. (Do not round intermediate calculations. Round your answers to the nearest dollar amount.) Balance Sheet (Partial) At December 31, 2022 Current assets Current liabilities Req 3A Req 3B
