ts Ook On February 1, 2021. Arrow Construction Company entered into a three-year construction contract to build a bridge for a price of $8.240,000. During 2021, costs of $2,080,000 were incurred with estimated costs of $4.080,000 yet to be incurred. Billings of $2,580,000 were sent, and cash collected was $2,330,000 In 2022, costs incurred were $2,580,000 with remaining costs estimated to be $3,720,000, 2022 billings were $2,830,000 and $2.555,000 cash was collected. The project was completed in 2023 after additional costs of $3,880,000 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 of completion method 2n. Prepare journal entries for 2021 to record the transactions described (credit various accounts for construction costs incurrec) 2b. Prepare journal entries for 2022 to record the transactions described (credit various accounts for construction costs incurred) 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. Print Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 25 Red 3A Reg38 Compute the amount of revenue and are compute une mount of revenu OSS POUR 1055 TOZU ZULI, ZULL, OTU ZUES Ungue percentage of LL method. (Do not round Intermediate calculations. Loss amounts should be indicated with a minus sign. Round your final answers to nearest whole dollar.) Percentages of completion Choose numerator Choose denominator % complete to date Actual costs to date Estimated total costs 2021 $ 2,080,000 - $ 6.160,000= 33.7662% 2022 $ 4,660,000 $ 8,380,000 = 55 6086% 2023 $ 8,240,000 $ 0 2021 To date Recognized in prior years Recognized in 2021 Construction revenue 0 Construction expense $ 0 Gross profit (loss) $ 0 . To date 2022 Recognized in prior years Recognized in 2022 Construction revenue Construction expense Gross profit (los) $ 0 $ $ 0 0 To date 2023 Recognized in prior years Recognized in 2023 Construction revenue Construction expense 0 5 $ 0 2023 8,240,000 2021 To date Recognized in prior years Construction revenue Recognized in 2021 $ 0 Construction expense Gross profit (loss) $ $ 0 0 OK mt To date 2022 Recognized in prior years ences Recognized in 2022 Construction revenue Construction expense Gross profit (loss) $ 0 $ $ 0 0 To date 2023 Recognized in prior years Recognized in 2023 Construction revenue Construction expense Gross profit (los) 5 0 $ 0 $ 0 Reu Reg 2A > Journal entry worksheet No Year General Journal Debit Credit 1 2021 Construction in progress Various accounts 2,080,000 2,080,000 2 2021 Accounts receivable Billings on construction contract 2,580,000 2,580,000 3 2021 Cash Accounts receivable 2.330,000 2,330,000 4 2021 Cost of construction Construction in progress Revenue from long term contracts CRA
