Arrow construction company entered into a three year construction contract course hero cource hero2/12/2024 ![]() Prepare journal entries for 2024 to record the transactions described (credit "Cash, Materials, etc." for construction costs incurred). ![]() Calculate the amount of revenue and gross profit or loss to be recognized in each of the three years. Arrow recognizes revenue over time according to percentage of completion. The company's fiscal year-end is December 31. The project was completed in 2026 after additional costs of $3, 820, 000 were incurred. Billings of $2, 520, 000 were sent, and cash collected was $2, 270, 000. During 2024, costs of $2, 020, 000 were incurred with estimated costs of $4, 020, 000 yet to be incurred. On February 1, 2024, Arrow Construction Company entered into a three-year construction contract to build a bridge for a price of $8, 060, 000. ![]()
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