Exercise 6-19 (Algo) Long-term contract; revenue recognition over time and at a point in time [LO6-9) Assume Nortel Networks contracted to provide a customer with Internet infrastructure for $2,550,000. The project began in 2021 and was completed in 2022. Data relating to the contract are summarized below: Costs incurred during the year Estimated costs to complete an of 12/31 Dillinga during the year Canh collection during the year 2021 2022 $ 344,000 $1,773,000 1,376,000 468,000 2,082,000 316,000 2,234,000 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 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) har44 I. Compute the amount or revenue and gross pront or 10SS to be recognized in 2021 over time according to percentage of completion. 2. Compute the amount of revenue and gross profit or loss to be recognized in 202 for revenue recognition over time. 3. Prepare a partial balance sheet to show how the information related to this contri assuming Nortel recognizes revenue over time according to percentage of complet 4. Prepare a partial balance sheet to show how the information related to this contri 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 assuming this project does not qualify for revenue recognition over time. Balance Sheet (Partial) At December 31, 2021 Current assets: Current liabilities: 1. Compute the amount or revenue and gross prort or loss to be recognized in 2U21 and 2022 assunung Norter 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 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 the table below to arrive at your final answer.) Percentages of completion Choose denominator Choose numerator + % complete to date 2021 2022 0 0 2021 Recognized in prior years To date Recognized in 2021 Construction revenue Construction expense Gross profit (010 $ s $ 0
