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.

$\backslash$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 $2$A 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.

$\backslash$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\mathrm{.}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.

$2$a$.$ Prepare journal entries for $2024$ to record the transactions described $($credit "Cash, Materials, etc." for construction costs incurred$).$

$2$b$.$ Prepare journal entries for $2025$ to record the transactions described $($credit "Cash, Materials, etc." for construction costs incurred$).$

$3$a$.$ Prepare a partial balance sheet to show the presentation of the project as of December $31,2024.$

$3$b$.$ 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 $$3,930,000$ were incurred. The company$$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.

$2$a$.$ Prepare journal entries for $2024$ to record the transactions described $($credit "Cash, Materials, etc." for construction costs incurred$).$

$2$b$.$ Prepare journal entries for $2025$ to record the transactions described $($credit "Cash, Materials, etc." for construction costs incurred$).$

$3$a$.$ Prepare a partial balance sheet to show the presentation of the project as of December $31,2024.$

$3$b$.$ Prepare a partial balance sheet to show the presentation of the project as of December $31,2025.$