Saved Help On February 1, 2021, Arrow Construction Company entered into a three-year construction contract to build a bridge for a price 58.480,000. During 2021, costs of $2,160,000 were incurred with estimated costs of $4,160,000 yet to be incurred. Billings of $2,660,000 were sent, and cash collected was $2,410,000. In 2022, costs incurred were $2,660,000 with remaining costs estimated to be $3,840,000.2022 billings were $2,910,000 an $2,635,000 cash was collected. The project was completed in 2023 after additional costs of $3,960,000 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 o completion method. 2a. Prepare journal entries for 2021 to record the transactions described (credit "various accounts for construction costs incu 2b. Prepare journal entries for 2022 to record the transactions described (credit various accounts for construction costs incu 30. 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. Reg 1 Reg 2A Reg 2B Reg 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 comple method. (Do not round intermediate calculations. Los amounts should be indicated with a minus sian Round your final answers nearest whole dollar.) Prev 7 of 8 !!! Next ork Saved Help Sav Assume Nortel Networks contracted to provide a customer with Internet infrastructure for $2.910,000. The project began in 2021 and was completed in 2022. Data relating to the contract are summarized below. Costs incurred during the year Estimated costs to complete as of 12/31 Billings during the year Cash collections during the year 2021 2022 $ 376,000 $2,265,000 1,504,000 535,000 1,810,000 500,000 1,845,000 Required: 1. Compute the amount of revenue and gross profit or loss to be recognized in 2021 and 2022 assuming Nortel recognizes revenue over time according to percentage of completion. 2. Compute the amount of revenue and gross profit or loss to be recognized in 2021 and 2022 assuming this project does not qualif for revenue recognition over time. 3. Prepare a partial balance sheet to show how the information related to this contract would be presented at the end of 2021 assuming Nortel recognizes revenue over time according to percentage of completion 4. Prepare a partial balance sheet to show how the information related to this contract would be presented at the end of 2021 assuming this project does not qualify for revenue recognition over time. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 a S N Brady Construction Company contracted to build an apartment complex for a price of $5,300,000. Construction began in 2021 an was completed in 2023. The following is a series of independent situations, numbered 1 through 6, involving differing costs for the project. All costs are stated in thousands of dollars. Estimated Costs to Complete Costs Incurred (As of the End of During Year the Year) Situation 2021 2022 2023 2021 2022 2023 1,530 2,220 990 3,210 990 1,530 990 2,520 3,219 2,520 1,530 2,220 1,840 3,219 1,740 530 3,030 1,060 3,710 890 530 3,030 1,510 3,710 1,740 530 3,030 2,100 4,900 1,970 UAWNE Required: Complete the following table. (Do not round intermediate calculations. Enter answers in dollars. Round your final answers to nearest whole dollar. Negative amounts should be indicated by a minus sign.)
