On February $1,2024,$ Arrow Construction Company entered Into a three$-$year construction contract to bulld a bridge for a price of $$8,000,000.$ During $2024,$ costs of $$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 $2025,$ costs incurred were $$2,500,000$ with remaining costs estimated to be $$3,600,000,2025$ 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 nscal year$-$end is December $31.$ This project does not quality for revenue recognition over thme.

Required:

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

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

$2$b$.$ Prepare journal entrles for $2025$ to record the transactlons descrlbed $($credt "Cash, Materlals, etc' for constructlon costs incurred$).$

$3$a$.$ Prepare a partal balance sheet to show the presentation of the project as of December $31,2024.$

$3b.$ Prepare a partial balance sheet to show the presentatlon of the project as of December $31,2025.$

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

Req $1$

Reg$2A$

Res $2a$

kosis

Rhatis

Prepare joumal entries for $2025$ to recorg the tugsactions of

Journal entry worksheet

$2,3$:$4$

Record the construction coster$.$

$\backslash$table$[[$Yoar$,$Qeneral Journsi,Dobli,Cradli$],[2025,,,],[,,,],[,,,],[,,,],[,,,],[,,,]]$