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req. 1-3b Check m 7 On February 1, 2021, Arrow Construction Company entered into a three-year construction contract to build a bridge for a price

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Check m 7 On February 1, 2021, Arrow Construction Company entered into a three-year construction contract to build a bridge for a price of $8,180,000. During 2021, costs of $2,060,000 were incurred with estimated costs of $4,060,000 yet to be incurred. Billings of $2,560,000 were sent, and cash collected was $2,310,000. 23 In 2022, costs incurred were $2,560,000 with remaining costs estimated to be $3,690,000. 2022 billings were $2,810,000 and $2,535,000 cash was collected. The project was completed in 2023 after additional costs of $3,860,000 were incurred. The company's fiscal year-end is December 31. Arrow recognizes revenue over time according to percentage of completion. points 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 eBook References 7 Req Req 2A Req 28 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 minas sign. Round your final answers to the nearest whole dollar.) 23 points Percentages of completion Choose numerator Choose denominator % complete to date Actual costs to date Estimated total costs 2021 2,060,000 6,120,000 33.6601 % eBook 4,620,000 2022 8,310,000 55.5957 % 2023 2021 References To date Recognized in prior years Recognized in 2021 Construction revenue S 0 Construction expense 0 Gross profit (loss) 2022 Recognized in prior years Recognized in 2022 To date Construction revenue 0 Construction expense S 0 Gross profit (loss) 2022 Recognized in prior years To date Recognized in 2023 Construction revenue 0 Construction expense 0 Gross profit (loss) $ 0 7 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. 23 points Req 2A Req 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) eBook View transaction list View journal entry worksheet References General Journal No Year Debit Credit Construction in progress 2021 2,060,000 Various accounts 2,060,000 Accounts receivable 2021 2,560,000 2,560,000 Billings on construction contract Cash 2,310,000 3 2021 2,310,000 Accounts receivable Cost of construction Construction in progress 2021 4 Revenue from long-term contracts Req 2B Req1 7 Req Req 2B Req 3B Req 2A Req 3A Prepare journal entries for 2022 to record the transactions described (credit "various accounts" for construction costs incurred). (If no entry transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your answers to 23 points View transaction list ook Journal entry worksheet

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