Homework 3 i Savad Help Save & Exit Submit Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion Return to question complete to date 2021 2022 2023 = Percentages of completion Choose numerator + Choose denominator Actual costs to date Estimated total costs 2,150,000 $ 6,300,000 4,800,000 $ 8,625,000 8.750,000 $ 8,750,000 2021 34.1270% 55.6522% 100.0000% S Recognized in prior years Construction revenue Construction expense Gross profit (less) To date 2.883.732 2,150,000 733.732 Recognized in 2021 2.883.732 2,150.000 733,732 $ $ $ s 0 0 $ $ S Construction revenue Construction expense Gross profit (less) To date 4.702.172 4,800,000 2022 Recognized in prior years $ 2.883.732 $ 2,150,000 733,732 $ $ $ Recognized in 2022 1.818.440 2.650 000 (733.732) 2022 Recognized in prior years 4,702,172 S $ $ Construction revenue Construction expense PARA To date 8,450,000 8.750,000 1200 non Recognized in 2023 3,747.828 8.750.000 s 12nn nnm HomeWOPR 3 Homework 3 i Saved Help Save & Exit Submit Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to question On February 1, 2021, Arrow Construction Company entered into a three-year construction contract to build a bridge for a price of $8,450,000. During 2021, costs of $2,150,000 were incurred with estimated costs of $4,150,000 yet to be incurred. Billings of $2,650,000 were sent, and cash collected was $2,400,000. points In 2022, costs incurred were $2,650,000 with remaining costs estimated to be $3,825,000. 2022 billings were $2,900,000 and $2,625,000 cash was collected. The project was completed in 2023 after additional costs of $3,950,000 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. 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