Assume Nortel Networks contracted to provide a customer with Internet infrastructure for $2.650,000. The project began in 2021 and was completed in 2022. Data relating to the contract are summarized below: Costs incurred during the Estimated costs to complete as of 12/31 Billings during the year Cash collections during the year 2021 $ 352.000 1. 408.000 470.000 405.000 2022 $2.025,000 0 1.750.000 1.815.000 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 quality 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. 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 Costs and profit in excess of bilings 60,000 Current liabilities Assume Nortel Networks contracted to provide a customer with Internet infrastructure for $2.650,000. The project began in 2021 and was completed in 2022. Data relating to the contract are summarized below: Corts incurred during the year Estimated costs to complete as of 12/31 Billing during the year Cash collections during the year 2021 $ 352.000 1. 18,000 470.000 405,000 2022 $2.025.000 0 1.750,000 1.815.000 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 quality 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. 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 this project does not qualify for revenue recognition over time. Balance Sheet (Partial) At December 31, 2021 Current assets Accounts receivable Current liabilities Billings in excess of costs and profit 118,000
