Homework Answers
| 1 | 2018 | 2019 | ||||||||
| Contract price (1) | 2700000 | 2700000 | ||||||||
| Actual cost to date (a) | 356000 | 2491000 | ||||||||
| (356000+2135000) | ||||||||||
| Estimated cost to complete (b) | 1424000 | 0 | ||||||||
| Total estimated cost ©=(a)+(b) | 1780000 | 2491000 | ||||||||
| Percentage of completion (a)/© | 20% | 100% | ||||||||
| Expected gross profit (1)-© | 920000 | 209000 | ||||||||
| Revenue to be recognized=(Contract price*Percentage of completion)-Revenue recognized earlier | ||||||||||
| Gross profit to be recognized=(Expected gross profit*Percentage of completion)-Gross profit already recognized | ||||||||||
| 2018 | ||||||||||
| Revenue to be recognized=(2700000*20%)-0=$ 540000 | ||||||||||
| Gross profit to be recognized=(920000*20%)-0=$ 184000 | ||||||||||
| 2019 | ||||||||||
| Revenue to be recognized=(2700000*100%)-540000=$ 2160000 | ||||||||||
| Gross profit to be recognized=(209000*100%)-184000=$ 25000 | ||||||||||
| 2 | If the project does not qualify for revenue recognition over time,recognize revenue on completion of contract | |||||||||
| 2018 | ||||||||||
| Revenue to be recognized=0 | ||||||||||
| Gross profit to be recognized=0 | ||||||||||
| (Since contract has not completed) | ||||||||||
| 2019 | ||||||||||
| Revenue to be recognized=Contract price=$ 2700000 | ||||||||||
| Gross profit to be recognized=Contract price-Actual cost to date=2700000-2491000=$ 209000 | ||||||||||
| 3 | Partial balance sheet-2018 | |||||||||
| Current assets: | ||||||||||
| Accounts receivable | ||||||||||
| Billings made during the year | 475000 | |||||||||
| Less: Cash collections | 278000 | 197000 | ||||||||
| Cost and profit in excess of billings | ||||||||||
| Cost incurred | 356000 | |||||||||
| Add:Gross profit recognized | 184000 | |||||||||
| 540000 | ||||||||||
| Less: Billings | 475000 | 65000 | ||||||||
| 4 | Partial balance sheet-2018 | |||||||||
| Current assets: | ||||||||||
| Accounts receivable | ||||||||||
| Billings made during the year | 475000 | |||||||||
| Less: Cash collections | 278000 | 197000 | ||||||||
| Current liability: | ||||||||||
| Billings in excess of cost | ||||||||||
| Billings made during the year | 475000 | |||||||||
| Less: Cost incurred | 356000 | 119000 | ||||||||
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Requirement 3 please
Assume Nortel Networks contracted to provide a customer with Internet infrastructure for $2,700,000....
Assume Nortel Networks contracted to provide a customer with Internet infrastructure for $2,700,000. The project began...
Assume Nortel Networks contracted to provide a customer with Internet infrastructure for $2,700,000. 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 $ 356,000 $ 2,135,000 Estimated costs to complete as of 12/31 1,424,000 0 Billings during the year 475,000 1,760,000 Cash collections during the year 415,000 1,820,000 Required: 1. Compute the amount of revenue and gross profit or loss to be recognized in...
Only requirement 2 please. Thank you Assume Nortel Networks contracted to provide a customer with Internet...
Only requirement 2 please. Thank you
Assume Nortel Networks contracted to provide a customer with Internet infrastructure for $2,700,000. The project began in 2018 and was completed in 2019. Data relating to the contract are summarized below 2018 2019 Costs incurred during the year Estinated costs to complete as of 12/31 Billings during the year Cash collections during the year $356,000 $2,135,000 1.424,000 475,000 1,760,000 278,000 1,820,000 Required: 1. Compute the amount of revenue and gross profit or loss to...
Assume Nortel Networks contracted to provide a customer with Internet infrastructure for $2,700,000. The project began...
Assume Nortel Networks contracted to provide a customer with Internet infrastructure for $2,700,000. The project began in 2018 and was completed in 2019. Data relating to the contract are summarized below: 2019 2018 356,000 $2,135,000 Costs incurred during the year Estimated costs to complete as of 12/31 Billings during the year Cash collections during the year 1,424,000 475,000 1,760, 000 278,000 1,820,000 Required: 1. Compute the amount of revenue and gross profit or loss to be recognized in 2018 and...
Assume Nortel Networks contracted to provide a customer with Internet infrastructure for $2,000,000. The project began...
Assume Nortel Networks contracted to provide a customer with Internet infrastructure for $2,000,000. The project began in 2018 and was completed in 2019. Data relating to the contract are summarized below: 2018 2019 Costs incurred during the year Estimated costs to complete as of 12/31 Billings during the year Cash collections during the year $ 300,000 1,575,000 1,200,000 380,000 1,620,000 250,000 1,750,000 Required 1. Compute the amount of revenue and gross profit or loss to be recognized in 2018 and...
Help Assume Nortel Networks contracted to provide a customer with Internet infrastructure for $2,760,000. The p...
Help Assume Nortel Networks contracted to provide a customer with Internet infrastructure for $2,760,000. The project began in 2018 and was completed in 2019. Data relating to the contract are summarized below: Costs incurred during the year Estimated costs to complete as of 12/31 Billings during the year Cash collections during the year 2018 364,000 $2,175,000 1,456,000 520,000 282,000 2019 0 1,780,000 1,830,000 Required: 1. Compute the amount of revenue and gross profit or loss to be recognized in 2018...
Assume Nortel Networks contracted to provide a customer with Internet infrastructure for $2,000,000. The project began...
Assume Nortel Networks contracted to provide a customer with Internet infrastructure for $2,000,000. The project began in 2016 and was completed in 2017. Data relating to the contract are summarized below:Required:1. Compute the amount of revenue and gross profit or loss to be recognized in 2016 and 2017 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 2016 and 2017 assuming this project does...
Assume Nortel Networks contracted to provide a customer with Internet infrastructure for $2,250,000. The project began...
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 $1,720,000 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 1,280,000 405.000 300,000 1.670.000 1,775,000 Required: 1. Compute the amount of revenue and gross profit or loss to be recognized in 2021 and...
Please show all calculations! Assume Nortel Networks contracted to provide a customer with Internet Infrastructure for...
Please show all
calculations!
Assume Nortel Networks contracted to provide a customer with Internet Infrastructure for $2600,000. The project began In 2018 and was completed In 2019. Data relating to the contract are summarized below: 2018 2819 Costs incurred during the year Estimated costs to complete as of 12/31 Billings during the year Cash collections during the year $ 348,90e $1,995,8ee 1, 392,8ee 465,888 1,748,888 274,808 1,818,888 Requlrec 1. Compute the amount of revenue and gross profit or loss to...
Assume Nortel Networks contracted to provide a customer with Internet infrastructure for $2.250,000. The project began...
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 $1,720,000 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 1,280,000 405,000 300,000 1,670,000 1,775,000 Required: 1. Compute the amount of revenue and gross profit or loss to be recognized in 2021 and...
& Exit 6 Check m Assume Nortel Networks contracted to provide a customer with Internet infrastructure...
& Exit 6 Check m Assume Nortel Networks contracted to provide a customer with Internet infrastructure for $2,910,000. The project began in 2021 and was completed in 2022. Data relating to the contract are summarized below 2021 S 376,000 $2,265,800 1,504,000 535,000 S00,000 Doints Costs incurred during the year Estinated costs to complete as of 12/31 Billings during the year Cash collections during the year 2022 1,810,000 1.845,c00 eBook Required: 1. Compute the amount of revenue and gross profit or...
Only requirement 2 please. Thank you
Assume Nortel Networks contracted to provide a customer with Internet infrastructure for $2,700,000. The project began in 2018 and was completed in 2019. Data relating to the contract are summarized below 2018 2019 Costs incurred during the year Estinated costs to complete as of 12/31 Billings during the year Cash collections during the year $356,000 $2,135,000 1.424,000 475,000 1,760,000 278,000 1,820,000 Required: 1. Compute the amount of revenue and gross profit or loss to...
Assume Nortel Networks contracted to provide a customer with Internet infrastructure for $2,700,000. The project began in 2018 and was completed in 2019. Data relating to the contract are summarized below: 2019 2018 356,000 $2,135,000 Costs incurred during the year Estimated costs to complete as of 12/31 Billings during the year Cash collections during the year 1,424,000 475,000 1,760, 000 278,000 1,820,000 Required: 1. Compute the amount of revenue and gross profit or loss to be recognized in 2018 and...
Assume Nortel Networks contracted to provide a customer with Internet infrastructure for $2,000,000. The project began in 2018 and was completed in 2019. Data relating to the contract are summarized below: 2018 2019 Costs incurred during the year Estimated costs to complete as of 12/31 Billings during the year Cash collections during the year $ 300,000 1,575,000 1,200,000 380,000 1,620,000 250,000 1,750,000 Required 1. Compute the amount of revenue and gross profit or loss to be recognized in 2018 and...
Help Assume Nortel Networks contracted to provide a customer with Internet infrastructure for $2,760,000. The project began in 2018 and was completed in 2019. Data relating to the contract are summarized below: Costs incurred during the year Estimated costs to complete as of 12/31 Billings during the year Cash collections during the year 2018 364,000 $2,175,000 1,456,000 520,000 282,000 2019 0 1,780,000 1,830,000 Required: 1. Compute the amount of revenue and gross profit or loss to be recognized in 2018...
Assume Nortel Networks contracted to provide a customer with Internet infrastructure for $2,000,000. The project began in 2016 and was completed in 2017. Data relating to the contract are summarized below:Required:1. Compute the amount of revenue and gross profit or loss to be recognized in 2016 and 2017 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 2016 and 2017 assuming this project does...
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 $1,720,000 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 1,280,000 405.000 300,000 1.670.000 1,775,000 Required: 1. Compute the amount of revenue and gross profit or loss to be recognized in 2021 and...
Please show all
calculations!
Assume Nortel Networks contracted to provide a customer with Internet Infrastructure for $2600,000. The project began In 2018 and was completed In 2019. Data relating to the contract are summarized below: 2018 2819 Costs incurred during the year Estimated costs to complete as of 12/31 Billings during the year Cash collections during the year $ 348,90e $1,995,8ee 1, 392,8ee 465,888 1,748,888 274,808 1,818,888 Requlrec 1. Compute the amount of revenue and gross profit or loss to...
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 $1,720,000 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 1,280,000 405,000 300,000 1,670,000 1,775,000 Required: 1. Compute the amount of revenue and gross profit or loss to be recognized in 2021 and...
& Exit 6 Check m Assume Nortel Networks contracted to provide a customer with Internet infrastructure for $2,910,000. The project began in 2021 and was completed in 2022. Data relating to the contract are summarized below 2021 S 376,000 $2,265,800 1,504,000 535,000 S00,000 Doints Costs incurred during the year Estinated costs to complete as of 12/31 Billings during the year Cash collections during the year 2022 1,810,000 1.845,c00 eBook Required: 1. Compute the amount of revenue and gross profit or...
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