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On February 1, 2018, Arrow Construction Company entered into a three-year construction contract to build a bridge for a price of $8,000,000. During 2018, 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 2019, costs incurred were $2,500,000 with remaining costs estimated to be $3,600,000. 2019 billings were $2,750,000, and $2,475,000 cash was collected. The project was completed in 2020 after additional costs of $3,800,000 were incurred. The companys fiscal year-end is December 31. Arrow recognizes revenue over time according to percentage of completion. Required: 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?

Complete this question by entering your answers in the tabs below. Req 1 Reg 2A Reg 2B Req 3A Req 3B 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.) : 2018 2019 2020 Percentages of completion Choose numerator Choose denominator = % complete to date Actual costs to date Estimated total costs $ 2,000,000 - $ 6,000,000) = 33.3333% $ 4,500,000 $ 8,100,000) = 55.5556% 100.0000% 2018 To date Recognized in prior years Recognized in 2018 $ 80,000,000 $ 80,000,000 $ 60,000,000 $ 60,000,000 $ 666,667 $ 666,667 Construction revenue Construction expense Gross profit (loss) $ $ Construction revenue Construction expense Gross profit (loss) To date 100.000 666,667 766,667 2019 Recognized in prior years Recognized in 2019 $ 100,000 $ 666,667 $ 666,667 $ 100,000 $ $ Construction revenue Construction expense Gross profit (loss) 2020 To date Recognized in prior years Recognized in 2020 300,000 $ 300,000 100,000 $ 100,000 200,000 $ 766,667 $ (566,667) 66 ( Req 1 Req 2A >

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