On February $1,2024,$ Arrow Construction Company entered into a three$-$year construction contract to bulld a bridge tor a price of $$8,000,000.$ During $2024,$ costs of $$2,000,000$ Were incurred, wth estimated costs of $$4,000,000$ yet to be incurred. Eilings of $$2,500,000$ were sent, and cash collected was $$2,250,000.$

In $2025,$ costs incurted were $$2,500,000$ whth remaining costs estimated to be $$3\mathrm{.}600,000,2025$ bilings were $$2750,000,$ and $$2,475,000$ cash was collected. The project was completed in $2026$ after additional costs of $$3,800,000$ were incurred. The company's tiscal year$-$end is December $31.$ This project does not quality for revenue recogntion over time.

Requlred:

Calculate the amount of revenue and gross proft or loss to be recognized in each of the three years.

$2$a$.$ Prepare joumal entrles for $2024$ to record the transactions described $($credt "Cash, Materials, etc." for constructon costs incurred$).$

$2$b$.$ Prepare journal entres for $2025$ to record the transactions described $($credt Cash, Materals, etc$-$ ror construction costs incurred$)$

$3$a$.$ Prepare a partlal bslance sheet to show the presentation of the project as or Decemoer $31,2024.$

$3$b$.$ Prepare a partal balance sheet to show the presentation of the project as or December $31,2025.$

Complete this question by entering your answers in the tabs below.

Req $1$

Reg $2A$

Reg $2B$

Reg $3$ A

Hoe $1$

Prepare a partial bsiance sheet to show the precentaten at tho profed

$\backslash$table$[[$Balanoe $8$heet$],[$At Dooember $31,2026,],[,],[,],[,],[,],[,],[,],[,],[,],[,]]$