On February 1, 2024, Arrow Construction Company entered into a three-year construction contract to build a bridge for a

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On February 1, 2024, Arrow Construction Company entered into a three-year construction contract to build a bridge for a

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On February 1 2024 Arrow Construction Company Entered Into A Three Year Construction Contract To Build A Bridge For A 1
On February 1 2024 Arrow Construction Company Entered Into A Three Year Construction Contract To Build A Bridge For A 1 (41.42 KiB) Viewed 5 times
On February 1 2024 Arrow Construction Company Entered Into A Three Year Construction Contract To Build A Bridge For A 2
On February 1 2024 Arrow Construction Company Entered Into A Three Year Construction Contract To Build A Bridge For A 2 (18.23 KiB) Viewed 5 times
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 2024 2025 2026 Construction revenue Construction expense Gross profit (loss) 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 answers to the nearest whole dollar. Construction revenue Construction expense Gross profit (loss) Req 2B Construction revenue Construction expense Gross profit (loss) Req 3A To date To date Req 3B To date Percentages of completion 2024 2025 2026 Recognized in prior years Recognized in prior years Recognized in prior years = = = $ $ $ $ $ $ $ $ $ Recognized in 2024 Recognized in 2025 Recognized in 2026 0 0 0 0 0 0 0 0 0 0 0 0
ediat calculations. Roun your answers to the nearest dollar amount. View transaction list Journal entry worksheet 1 2 Year 2024 3 Record the construction costs. Note: Enter debits before credits. Record entry 4 General Journal Clear entry Debit Credit View general journal >
Journal entry worksheet < 1 2 Record the progress billings. Year 2024 3 Note: Enter debits before credits. Record entry 4 General Journal Clear entry < Req 1 Debit Credit View general journal Req 2B > >
View transaction list Journal entry worksheet < 1 1 2 Record the cash collections. 3 Note: Enter debits before credits. Year 2024 Record entry 4 General Journal Clear entry Debit Credit View general journal 7
Journal entry worksheet < 1 1 2 3 [4] Record the gross profit or loss. Note: Enter debits before credits. Year 2024 Record entry General Journal Clear entry < Req 1 Debit Credit View general journal Req 2B > >
6 ints eBook Print References intermediate calculations. Round your answers to the nearest dollar amount. View transaction list Journal entry worksheet < 1 2 Year 2025 3 Record the construction costs. Note: Enter debits before credits. Record entry 4 General Journal JEIVEL TTU MUTTU HIST Toyun o Clear entry < Req 2A Debit Credit THE SETS THE MOSOMETŲ FISIME DO TIVV TOMTIM View general journal Req 3A > >
View transaction list Journal entry worksheet < 1 2 Record the progress billings. Year 2025 3 Note: Enter debits before credits. Record entry 4 General Journal Clear entry Debit Credit View general journal >
Journal entry worksheet < 1 2 Record the cash collections. 3 Note: Enter debits before credits. Year 2025 Record entry 4 General Journal Clear entry < Req 2A Debit Credit View general journal Req 3A > >
Journal entry worksheet 1 2 3 < Record the gross profit or loss. Note: Enter debits before credits. Year 2025 4 Record entry General Journal Clear entry Debit Credit View general journal >
Complete this question by entering your answers in the tabs below. Req 1 Current assets: Req 2A Current liabilities: Req 2B 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. Req 3A Balance Sheet (Partial) At December 31, 2024 Req 3B < Req 2B Req 3B >
Req 1 Current assets: Req 2A Current liabilities: Req 2B 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. Req 3A Balance Sheet (Partial) At December 31, 2025 Req 3B < Req 3A Req 3B >
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