Assume Nortel Networks contracted to provide a customer with internet infrastructure for $2.250,000. The project began in 2021 and was completed in 2022 Data relating to the contract are summarized below 2022 $1,665,000 Costs incurred during the year Estimated costs to complete as of 12/31 Billings during the year Cash collections during the year 2021 $320,000 1,280,000 420,000 280,000 1,830,000 1,970,000 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 2 Required 3 Required 4 Complete this question by entering your answers in the tabs below Required Required 2 Required Required 4 Compute the amount of revenue and grous profit or lose to be recognized in 2021 and 2022 assuming Mortel recognise over time according to percentage of completion (Los amounts should be indicated with a minus sign. Use percentage calculated and the me table below to arrive at your lanet) DO Percentages of completion Choose fenominator Choose numator complete to date + 2021 2022 0 2021 Recognized in priore To date ances Reci 2021 5 5 0 Construction revenue Construction expense Gross profit dosa) 1 0 2012 Recognized in prior years To date Hecognized in 2002 $ 0 Construction revenue Construction expense Grous profit loss 5 5 was completed in 2022. Data relating to the contract are summarized below Costs incurred during the year Estimated costs to complete as of 12/31 lings during the year Cash collections during the year 2021 2022 5 320,000 $1,665,000 1,210,000 420.000 1,230,000 Required: 1 Compute the amount of revenue and gross profit or loss to be recognized in 2021 and 2022 assuming Nortet recognizes revende over time according to percentage of completion 2. Compute the amount of revenue and gross profit or lose to be recognized in 2021 and 2022 assuming this project does not may 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 contact 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 Required 4 Compute the amount of revenue and gross profit or loss to be recognized in 2021 and 2022 assuming this project does cor quality for revenue recognition over time. (Lous amounts should be indicated with a minus sign) Reven Gross Profit Los 2021 2022 Denned Required 3 > We 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: Required 2 Required Required 4 Prepare a partial balance sheet to show how the information related to this contract would be presented at the end of 2021 aming Nortel recognizes revenue over time according to percentage of completion Bela Shua (Part A December 31, 2021 Current Current Required 2 Required 4 > wing 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 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 Current labas (Required 3
