Assume Nortel Networks 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: 2021 2022 Costs incurred during the year $ 300,000 $1,575,000 Estimated costs to complete as of 12/31 1,200,000 0 Billings during the year 380,000 1,620,000 Cash collections during the year 250,000 1,750,000 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 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. 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 Nortel recognizes revenue over time according to percentage of completion. (Use percentages as calculated and rounded in the table below to arrive at your final answer. Loss amounts should be indicated with a minus sign.) % complote to date Choose numerator + Actual costs to date 300,000 + Parcentages of completion Choose denominator Estimated total costs $ 1,875,000 $ 2021 2022 16.00% 0 + 2021 Recognized in prior years To date Recognized in 2021 0 Construction revenue Construction expense Gross profit (los) $ $ $ 0 0 2022 Recognized in prior years To date Recognized in 2022 0 Construction revenue Construction expense Gross profit (loss) $ $ 0 $ 0 id Prey 1 of 3 !!! Next > 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 wou assuming Nortel recognizes revenue over time according to percentage of completion. Balance Sheet (Partial) At December 31, 2021 Current assets: Accounts receivable Cash 130,000 250,000 Current liabilities: Deferred revenue $ 60,000 Complete this question by entering your answers in the tab Required 1 Required 2 Required 3 Required 4 Prepare a partial balance sheet to show how the information related assuming this project does not qualify for revenue recognition over Balance Sheet (Partial) At December 31, 2021 Current assets: Accounts receivable Cash Current liabilities:
