pls solve and explain with formulas. thank you!

6 10 points Return to question On February 1, 2024, Arrow Construction Company entered into a three-year construction contract to build 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 billings were $2,750,000, 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 fiscal year-end is December 31. Arrow recognizes revenue over time according to percentage of completion. Required: 1. Calculate the amount of revenue and gross profit or loss to be recognized in each of the three years. 2a. Prepare journal entries for 2024 to record the transactions described (credit "Cash, Materials, etc." for construction costs incurred). 2b. Prepare journal entries for 2025 to record the transactions described (credit "Cash, Materials, etc." for construction costs incurred). 3a. Prepare a partial balance sheet to show the presentation of the project as of December 31, 2024. 3b. Prepare a partial balance sheet to show the presentation of the project as of December 31, 2025. Req 1 Req 2A Req 2B Req 3A Req 3B Calculate the amount of revenue and gross profit or loss to be recognized in each of the three years. Note: Do not round intermediate calculations. Loss amounts should be indicated with a minus sign. Round your final answe whole dollar. Percentages of completion 2024 2,000,000 6,000,000 33.3333% 2025 S 4,500,000 S 8,100,000 55.5556% 2026 $ 8,300,000 $ 8,300,000 100.0000% Recognized in prior years Construction revenue Construction expense Gross profit (loss) Recognized in prior years Construction revenue Construction expense Gross profit (loss) To date To date 2024 2025 3036 S S $ $ $ Recognized in 2024 Recognized in 2025 0 0 0 0 0 0 Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 3A Req 3B Prepare journal entries for 2024 to record the transactions described (credit "Cash, Materials, etc." for construction costs Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not ro intermediate calculations. Round your answers to the nearest dollar amount. View transaction list X 1 Record the construction costs. 2 Record the progress billings. 3 Record the cash collections. 4 Record the gross profit or loss. Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 3A Req 3B Prepare journal entries for 2025 to record the transactions described (credit "Cash, Materials, etc." for construction costs ir Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not rou intermediate calculations. Round your answers to the nearest dollar amount. View transaction list X > 1 Record the construction costs. 2 Record the progress billings. 3 Record the cash collections. 4 Record the gross profit or loss. Credit 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 31, 2024. Note: Do not round intermediate calculations. Round your answers to the nearest dollar amount. Balance Sheet (Partial) At December 31, 2024 Current assets: Current liabilities: 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 31, 2025. Note: Do not round intermediate calculations. Round your answers to the nearest dollar amount. Balance Sheet (Partial) At December 31, 2025 Current assets: Current liabilities