Assume Nortel Networks contracted to provide a customer with internet infrastructure for 2350000. The project began in 2021 and was completed in 2022. Data relating to the contract are summarized below:
mework 2 2021 2022 Costs incurred during the year $ 328,000 $1,830,000 Estimated costs to complete as1.312.000 of 12/31 Billings during the year 436,000 1,690,000 Cash collections during the year 341,000 1,785,000 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 proces 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 er 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 er 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 Required Required Compute the amount of revenue and gross profit or loss to be recognized in 2021 and 2022 assum Nortel recognizes revenue over tinne according to percentage of completion. (Loss amounts should indicated with a minus sign. Use percentages as calculated and rounded in the table below to arriv. your final answer.) Percentages of completion + Choose denominator = % complete to date! Choose numerator Actual costs to date + = 0 2021 2022 Construction revenue Construction expense Gross profit (loss) 2021 To date R ecognized in prior years Recognized in 2021 S 0 SO ATSO To date Construction revenue Construction expense Gross profit (loss) 2022 Recognized in prior years I Recognized in 2022 $ SO $ 0 Required Required 2 > my UILICIUL CLUYLUNUver uite. Complete this question by entering your answers in the tabs below. Required Required Required Required 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.) Show less Revenue Gross Profit (Loss) 2021 2022 (Required 1 Required 3 > Cyuncu 1 2 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. Show less Balance Sheet (Partial) At December 31, 2021 Current assets: Current liabilitie UI LULUJJU HJULLE UULJHUL quumy UI evere lecUYILIUI uver line. Complete this question by entering your answers in the tabs below. Required Required Required Required 1 2 3 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. Show less Balance Sheet (Partial) At December 31, 2021 Current assets: Current liabilities:
