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1 Assume Nortel Network contracted to provide a customer with internet infrastructure for $2,000,000. The project began in 2021 and was completed in 2022 Data

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1 Assume Nortel Network contracted to provide a customer with internet infrastructure for $2,000,000. The project began in 2021 and was completed in 2022 Data relating to the contract are summarized below 10 Costs incurred during the year Estimated costs to complete Billing during the year Cath collections during the year 2022 $10,000 $1,575, 1,200,000 SH0.000 250.000 Required: 1. Compute the amount of revenue and gross profit or loss to be recognized in 2021 and 2022 Lssuming Nortel recognizes revenue 2. Compute the amount of revenue and gross profit or fons to be recognized in 2021 and 2022 assuming this project does not qually for revenue recognition over time 3. Prepare a partial balance sheet to show how the information related to this contract would be presented at the end of 2021 assuming Norte recognizes revenue over time according to percentage of completion 4. Prepare a balance sheet to show how the information related to this contract would be presented at the end of 2021 assuring this project does not qualify for revence recognition over time Percentages of completion Choose denominator Choose numerator + % complete to date + 0 2021 2022 + 0 2021 Recognized in prior years To date Recognized in 2021 0 0 Construction revenue Construction expense Gross proft (1095) 5 $ 0 2022 Recognized in prior years To date Recognized in 2022 5 $ $ 0 0 Construction revenue Construction expense Gross profitos) 0 Prov 1 of 4 Hit Next > 10 points Required 1 Required 2 Required 3 Required 4 Compute the amount of rever profit or loss to be recognized in 2021 and 2022 assuming this project does not qualify for revenue recognition over time. (loss amounts should be indicated with a minus sign.) co Print Revenue Gross Prolii (Loss) 2021 2022 Regulied Roomica Prepare a partial balance sheet to show how the information related to this contract would be presented at the end of 2021 assuming Nortel recognizes revenue over time according to percentage of completion. Balance Sheet (Partial) At December 31, 2021 Current assets Current liabilities Prepare a partial balance sheet to show how the information related to this contract would be presented at the end of 2021 assuming this project does not qualify for revenue recognition over time. Balance Sheet (Partian At December 31, 2021 Current assets Current liabilities 5

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