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Req 1 Calculate the amount of revenue and gross profit or loss to be recognized in each of the three years. Note: Loss amounts should

Req 1
Calculate the amount of revenue and gross profit or loss to be recognized in each of the three years.
Note: Loss amounts should be indicated with a minus sign. Leave no cells blank.
*Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. 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.
\table[[No,Year,General Journal,Debit,Credit],[1,2025,Construction in progress,0,2,656,000,],[,Cash, Materials, etc.,0,,2,656,000],[2,2025,Accounts receivable,0,2,906,000,],[,Billings on construction contract,0,,2,906,000],[3,2025,Cash,0,2,605,000,],[,Accounts receivable,0,,2,605,000],[4,2025,No journal entry required,x,ox,],[,,x,,x]]
Req 2A 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.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.
\table[[Balance Sheet],[At December 31,2025],[Current assets:,$],[Accounts receivable,],[,],[,],[Current liabilities:,],[Billings in excess of CIP,],[],[,]] On February 1,2024, Arrow Construction Company entered into a three-year construction contract to build a bridge for a price of
$8,325,000. During 2024, costs of $2,130,000 were incurred, with estimated costs of $4,130,000 yet to be incurred. Billings of
$2,656,000 were sent, and cash collected was $2,380,000.
In 2025, costs incurred were $2,656,000 with remaining costs estimated to be $3,795,000.2025 billings were $2,906,000, and
$2,605,000 cash was collected. The project was completed in 2026 after additional costs of $3,930,000 were incurred. The
company's fiscal year-end is December 31. This project does not qualify for revenue recognition over time.
Required:
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.On February 1,2024, Arrow Construction Company entered into a three-year construction contract to build a bridge for a price of $8,325,000. During 2024, costs of $2,130,000 were incurred, with estimated costs of $4,130,000 yet to be incurred. Billings of $2,656,000 were sent, and cash collected was $2,380,000.
In 2025, costs incurred were $2,656,000 with remaining costs estimated to be $3,795,000.2025 billings were $2,906,000, and $2,605,000 cash was collected. The project was completed in 2026 after additional costs of $3,930,000 were incurred. The companys 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 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.
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