Help Save & Exit Check my Exercise 5-19 Long-term contract; revenue recognition over time; loss proje cted on entire project (LoS 91 On February 1, 2018, Arrow Construction Company entered into a three-year construction contract to build a bridge for a price of $8,570,000. During 2018, costs of $2,190,000 were incurred with estimated costs of $4,190,000 yet to be incurred. Billings of $2,690,000 were sent, and cash collected was $2,440,000. In 2019, costs incurred were $2,690,000 with remaining costs estimated to be $3,885,000. 2019 billings were $2,940,000 and $2,665,000 cash was collected. The project was completed in 2020 after additional costs of $3,990,000 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 2018, 2019, and 2020 using the percentage of completion method? 2a. Prepare journal entries for 2018 to record the transactions described (credit "various accounts" for construction costs incurred 2b. Prepare journal entries for 2019 to record the transactions described (credit "various accounts" for construction costs incurrec 3a. Prepare a partial balance sheet to show the presentation of the project as of December 31, 2018 3b. Prepare a partial balance sheet to show the presentation of the project as of December 31, 2019. Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 3A Req 38 Prepare a partial balance sheet to show the presentation of the project as of December 31, 2019. (Do not ro calculations. Round your answers to the nearest dollar amount.) und intermediat On Februar Exercise 5-1 Listed belo. On Februar Chapter 7P Chance Co Saved 5 Homework ator | + | Choose denominator 1-1 % complete to date Estimated total costs Actual costs to date ,190,000 S 4,190,000 52.2673% 2018 2019 100.0000% 2018 To date Recognized in prior years Recognized in 2018 Construction expense Gross pudfit (loss) 2019 To date Recognized in prior years Recognized in 2019 Construction revenue Construction expense Gross profit (loss) 2020 To date Recognized in prior years Recognized in 2020 Construction revenue Construction expense Gross proft (loss) Req 2A > KPrev 8 of 10Next > OO F4 F3 F5 F7 F8 Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 28 Req 3A Req 3B Prepare a partial balance sheet to show the presentation of the project as of Dece calculations. Round your answers to the nearest dollar amount.) Balance Sheet (Partial) At December 31, 2018 es Current assets: Current liabilities: Req 2B Req 3B> K Prev 8 of 10 I Ne Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 3A Req 3B Prepare a partial balance sheet to show the presentation of the project as of December calculations. Round your answers to the nearest dollar amount.) Balance Sheet (Partial) At December 31, 2019 es Current assets: Current liabilities: Req 3A Req 3B Prev 80110 Nex