13 Assume Nortel Networks contracted to provide a customer with Internet infrastructure for $2.450,000. The project began in 2021 and was completed in 2022. Data relating to the contract are summarized below 2021 2022 $ 336,000 $1,870,000 1,344,000 446,000 1,710,000 361,000 1,795,000 Costs incurred during the year Estimated costs to complete as of 12/31 Billings during the year Cash collections during the year 4.8/10 points awarded Scored Required: 1. Compute the amount of revenue and gross profit or loss to be recognized in 2021 and 2022 assuming Nortel recognizes revenue over time according to percentage of completion. 2. Compute the amount of revenue and gross profit or loss to be recognized in 2021 and 2022 assuming this project does not qualify 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 Nortel recognizes revenue over time according to percentage of completion 4. 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. Complete this question by entering your answers in the tabs below. 13 Required 1 Required 2 Required 3 Required 4 4.8/10 points awarded Compute the amount of revenue and gross profit or loss to be recognized in 2021 and 2022 assuming Nortel recognizes revenue over time according to percentage of completion. (Loss amounts should be indicated with a minus sign. Use percentages as calculated and rounded in table below to arrive at your final answer.) Scored % complete to date Choose numerator Actual costs to date 336,000+ 2,206,000+ Percentages of completion Choose denominator Estimated total costs $ 1,680,000 - $ 2,206,000 2021 20.00% 100.00% 2022 = 2021 Recognized in prior years Construction revenue Construction expense Gross profit (loss) $ $ $ To date 2,156,000 (2,206,000) (50,000) Recognized in 2021 2,156,000 (2.206,000) (50,000) Construction revenue Construction expense Gross profit (loss) $ $ To date 431,000 $ (336,000) $ 95,200 $ 2022 Recognized in prior years 1,724,800 $ (1,870,000) $ (145,200) S Recognized in 2022 (1,293,800) 1,534,000 240,400 $ Required 2 > ne points deducted Required 1 Required 2 Required 3 Required 4 Compute the amount of revenue and gross 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.) 2021 2022 Revenue Gross Profit (Loss) $ 0 $ 0 $ 2,156,000 $ 2,206,000 Required 1 Required 2 Required 3 Required 4 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: Accounts receivable + $ 85,000 Current liabilities: Billings in excess of costs and profit 14,800 red Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Requirt 4 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 (Partial) At December 31, 2021 Current assets: Accounts receivable $ 85,000 Current liabilities: Billings in excess of costs and profit 110,000