Please help explain why its saying its wrong where it shows the red x's. Also please help me answer the rest of the

On February 1, 2018, Arrow Construction Company entered into a three-year construction contract to build a bridge for a price of $8,570,000. During 2018, costs of $2,190,000 were incurred with estimated costs of $4,190,000 yet to be incurred. Billings of $2,690,000 were sent, and cash collected was $2,440,000. In 2019, costs incurred were $2,690,000 with remaining costs estimated to be $3,885,000. 2019 billings were $2,940,000 and $2,665,000 cash was collected. The project was completed in 2020 after additional costs of $3,990,000 were incurred. The companys fiscal year-end is December 31. Arrow recognizes revenue over time according to percentage of completion. Requlrec: 1. Compute the amount of revenue and gross profit or loss to be recognized in 2018, 2019, and 2020 using the percentage of completion method? 2a. Prepare journal entries for 2018 to record the transactions described (credit various accounts for construction costs incurred) 2b. Prepare journal entries for 2019 to record the transactions described (credit various accounts for construction costs incurred). 3a. Prepare a partial balance sheet to show the presentation of the project as of December 31, 2018. 3b. Prepare a partial balance sheet to show the presentation of the project as of December 31, 2019. Answer is not complete. Complete this question by entering your answers in the tabs below Req 1 Req 2A Req 2B Req 3A 2q Compute the amount of revenue and gross profit or loss to be recognized in 2018, 2019, and 2020 using the percentage of completion method? (Do not round intermediate calculations. Loss amounts should be indicated with a minus sign. Round your final answers to the nearest whole dollar.) Choose denominator % complete to dste Choose numerator Actusl costs to date | ÷ Estimated total costs。 2018 2019 2020 8,380,000 8,785,000 34.3260% 55.8760% 100.0000% 2.190.000 ÷ 4.880.000 2018 Recognized in prior To date Recognized in 2018 2,941,224 2.190,000 751,224 Construction 2941,224 2.190,000 751,224 Gross profit (loss) 2019 Recognized in prior To date Recognized in 2019 Construction 2.941,224 2.190,000 4.770.919 1.829,895 2.190,000 Gross profit (loss) 2020 Recognized in prior To date Recognized in 2020 ConstructionPlease help explain why its saying its wrong where it shows the red x’s. Also please help me answer the rest of the parts for 2019 and 2020 as well as the other parts 2a,2b,3a,3b. Thanks

On February 1, 2018, Arrow Construction Company entered into a three-year construction contract to build a bridge for a price of $8,570,000. During 2018, costs of $2,190,000 were incurred with estimated costs of $4,190,000 yet to be incurred. Billings of $2,690,000 were sent, and cash collected was $2,440,000. In 2019, costs incurred were $2,690,000 with remaining costs estimated to be $3,885,000. 2019 billings were $2,940,000 and $2,665,000 cash was collected. The project was completed in 2020 after additional costs of $3,990,000 were incurred. The company’s fiscal year-end is December 31. Arrow recognizes revenue over time according to percentage of completion. Requlrec: 1. Compute the amount of revenue and gross profit or loss to be recognized in 2018, 2019, and 2020 using the percentage of completion method? 2a. Prepare journal entries for 2018 to record the transactions described (credit “various accounts” for construction costs incurred) 2b. Prepare journal entries for 2019 to record the transactions described (credit “various accounts” for construction costs incurred). 3a. Prepare a partial balance sheet to show the presentation of the project as of December 31, 2018. 3b. Prepare a partial balance sheet to show the presentation of the project as of December 31, 2019. Answer is not complete. Complete this question by entering your answers in the tabs below Req 1 Req 2A Req 2B Req 3A 2q Compute the amount of revenue and gross profit or loss to be recognized in 2018, 2019, and 2020 using the percentage of completion method? (Do not round intermediate calculations. Loss amounts should be indicated with a minus sign. Round your final answers to the nearest whole dollar.) Choose denominator % complete to dste Choose numerator Actusl costs to date | ÷ Estimated total costs。 2018 2019 2020 8,380,000 8,785,000 34.3260% 55.8760% 100.0000% 2.190.000 ÷ 4.880.000 2018 Recognized in prior To date Recognized in 2018 2,941,224 2.190,000 751,224 Construction 2941,224 2.190,000 751,224 Gross profit (loss) 2019 Recognized in prior To date Recognized in 2019 Construction 2.941,224 2.190,000 4.770.919 1.829,895 2.190,000 Gross profit (loss) 2020 Recognized in prior To date Recognized in 2020 Construction

Expert Answer

 

1.

2018

To Date Recognised in prior years Recognised in 2018
Construction Revenue $2,941,740* $0 $2,941,740
Construction Expense $2,190,000 $0 $2,190,000
Gross Profit (loss) $751,740** $0 $751,740

*$8,570,000 x 34.3260% = $2,941,740

**$2,941,740 – $2,190,000 = $751,740

2019

To date Recognised in prior years Recognised in 2019
Construction Revenue $4,771,433 $2,941,740 $1,829,693
Construction Expense $4,880,000 $2,190,000 $2,690,000
Gross Profit (Loss) ($108,567) $751,740 ($860,307)

2020

To date Recognised in prior years Recognised in 2020
Construction Revenue $8,570,000 $4,771,433 $3,798,567
Construction Expense $8,870,000 $4,880,000 $3,990,000
Gross Profit (Loss) ($300,000) ($108,567) ($191,433)
2a
Year General Journal Debit Credit
2018 Construction in Progress $2,190,000
Various Accounts $2,190,000
2018 Accounts Receivable $2,690,000
Billings on Construction Contract $2,690,000
2018 Cash $2,440,000
Accounts Receivable $2,440,000
2018 Construction in Progress $751,740
Construction Expense $2,190,000
Construction Revenue $2,941,740
2b
Year General Journal Debit Credit
2019 Construction in Progress $2,690,000
Various Accounts $2,690,000
2019 Accounts Receivable $2,940,000
Billings on Construction Contract $2,940,000
2019 Cash $2,665,000
Accounts Receivable $2,665,000
2019 Construction Expense $2,690,000
Construction in Progress $860,307
Construction Revenue $1,829,693
3a
Balance sheet
2018
Current Assets:
   Account Receivable $250,000
   Costs and profit in excess of billings $251,740
3b
Balance sheet
2019
Current Assets:
   Account Receivable $525,000
Current Liabilities:
Billings in Excess of costs $858,567
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