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On February 1, 2021. Arrow Construction Company entered into a three-year construction contract to build a bridge for a price of $8,050,000. During 2021, costs of $2,020,000 were incurred with estimated costs of $4,020,000 yet to be incurred. Billings of $2,524,000 were sent, and cash collected was $2,270,000 In 2022, costs incurred were $2,524.000 with remaining costs estimated to be $3,630,000. 2022 billings were $2,774,000, and $2,495,000 cash was collected. The project was completed in 2023 after additional costs of $3,820,000 were incurred. The company's fiscal year-end is December 31. This project does not qualify for revenue recognition over time. 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 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 Complete this question by entering your answers in the tabs below. Req 2A Reg 1 Req Reg 28 Reg 38 Prepare journal entries for 2021 to record the transactions described (credit "various accounts for construction costs incurred). (II entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list 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. Req 1 Req 2A Req 2B Req Req 3B Calculate the amount of revenue and gross profit or loss to be recognized in each of the three years. (Los indicated with a minus sign.) Year Revenue recognized Gross profit (loss) recognized 2021 2022 2023 Total $ 0 $ View transaction list Journal entry worksheet Record the progress billings. Note: Enter debits before credits. Debit Credit Year General Journal 2021 View general journal Clear entry Record entry Journal entry worksheet > 2 4 1 3 Record the cash collections, Note: Enter debits before credits Debit Credit General Journal Year 2021 View general journal Clear entry Record entry Den 28 View transaction list Journal entry worksheet 1 2 3 4 Record the gross profit or loss. Note: Enter debits before credits Debit Credit General Journal Year 2021 View general journal Clear entry Record entry Reg 1 Reg 2A Reg 2B Reg 3A Reg 3B Prepare journal entries for 2022 to record the transactions described (credit "various accounts for construction costs incurred) (1 entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet BE 30 of 31 Req 1 Reg 2A Reg 2B Req 3A Req 3B Prepare a partial balance sheet to show the presentation of the project as of calculations. Round your answers to the nearest dollar amount.) Balance Sheet At December 31, 2021 Current assets: Current liabilities: Req 1 Req 2A Req 2B Req Req 3B Prepare a partial balance sheet to show the presentation of the project as of December 3 calculations. Round your answers to the nearest dollar amount.) Balance Sheet At December 31, 2022 Current assets: Current liabilities
