Exercise 5-19 Long-term contract; revenue recognition over time; loss projected on entire project [LO5-9] On February 1, 2016, Arrow Construction Company entered into a three-year construction contract to build a bridge for a price of $8,000,000. During 2016, costs of $2,000,000 were incurred with estimated costs of $4,000,000 yet to be incurred. Billings of $2,500,000 were sent, and cash collected was $2,250,000. In 2017, costs incurred were $2,500,000 with remaining costs estimated to be $3,600,000. 2017 billings were $2,750,000, and $2,475,000 cash was collected. The project was completed in 2018 after additional costs of $3,800,000 were incurred. The companys fiscal year-end is December 31. Arrow recognizes revenue over time according to percentage of completion.

Sorry I have tried to edit it 3 times and the chart is not showing up:

2016 To date Recognized in prior year Recognized in 2016 Construction Revenue ??? $0 $00 Construction Expense $2,000,000 $0 $2,000,000 Gross Profit $666,667 $0 $666,667

2017 To date Recognized in prior year Recognized in 2017 Construction Revenue ??? ??? $00 Construction Expense ??? $2,000,000 $? Gross Profit $666,667 $0 $?

2018 To date Recognized in prior year Recognized in 2018 Construction Revenue $8,000,000 $ ?? $?? Construction Expense $8,300,000 $ ?? $ ?? Gross Profit -$300,000 -$100,000 - $200,00