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 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.
Homework Answers
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Assume Nortel Networks
contracted to provide a customer with Internet infrastructure for
$2,700,000. The project began...
Requirement 3 please Assume Nortel Networks contracted to provide a customer with Internet infrastructure for $2,700,000....
Requirement 3 please
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 356,000 $2,135,000 2019 Costs incurred during the year Estinated costs to complete as of 12/31 illings 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...
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 $2,250,000. 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...
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...
Assume Nortel Networks contracted to provide a customer with Internet infrastructure for $2,910,000. The project began...
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 2022 Costs incurred during the year $ 376,000 $ 2,265,000 Estimated costs to complete as of 12/31 1,504,000 0 Billings during the year 535,000 1,810,000 Cash collections during the year 500,000 1,845,000 Required: 1. Compute the amount of revenue and gross profit or loss to be recognized in...
Assume Nortel Networks contracted to provide a customer with Internet infrastructure for $2,300,000. The project began...
Assume Nortel Networks contracted to provide a customer with Internet infrastructure for $2,300,000. 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 $ 324,000 $ 1,800,000 Estimated costs to complete as of 12/31 1,296,000 0 Billings during the year 410,000 1,680,000 Cash collections during the year 310,000 1,780,000 Required: 1. Compute the amount of revenue and gross profit or loss to be recognized in...
Assume Nortel Networks contracted to provide a customer with Internet infrastructure for $2,450,000. The project began...
Assume Nortel Networks contracted to provide a customer with Internet infrastructure for $2,450,000. 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 $ 336,000 $ 1,870,000 Estimated costs to complete as of 12/31 1,344,000 0 Billings during the year 446,000 1,710,000 Cash collections during the year 361,000 1,795,000 Required: 1. Compute the amount of revenue and gross profit or loss to be recognized in...
Assume Nortel Networks contracted to provide a customer with Internet infrastructure for $2,650,000. The project began...
Assume Nortel Networks contracted to provide a customer with Internet infrastructure for $2,650,000. 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 $ 352,000 $ 2,025,000 Estimated costs to complete as of 12/31 1,408,000 0 Billings during the year 470,000 1,750,000 Cash collections during the year 405,000 1,815,000 Required: 1. Compute the amount of revenue and gross profit or loss to be recognized in...
Assume Nortel Networks contracted to provide a customer with Internet infrastructure for $2,650,000. The project began...
Assume Nortel Networks contracted to provide a customer with Internet infrastructure for $2,650,000. 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 as of 12/31 Billings during the year Cash collections during the year 2021 $ 352,000 1,408,000 470,000 405,000 2022 $2,025,000 0 1,750,000 1,815,000 Required: 1. Compute the amount of revenue and gross profit or loss to be recognized in 2021...
Assume Nortel Networks contracted to provide a customer with Internet infrastructure for $2,960,000. The project began...
Assume Nortel Networks contracted to provide a customer with Internet infrastructure for $2,960,000. The project began in 2021 and was completed in 2022. Data relating to the contract are summarized below: 2022 $2,300,000 Costs incurred during the year Estimated costs to complete as of 12/31 Billings during the year Cash collections during the year 2021 $ 380,000 1,520,000 540,000 510,000 1, 820,000 1,850,000 Required: 1. Compute the amount of revenue and gross profit or loss to be recognized in 2021...
Requirement 3 please
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 356,000 $2,135,000 2019 Costs incurred during the year Estinated costs to complete as of 12/31 illings 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...
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 $2,250,000. 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...
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...
Assume Nortel Networks contracted to provide a customer with Internet infrastructure for $2,650,000. 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 as of 12/31 Billings during the year Cash collections during the year 2021 $ 352,000 1,408,000 470,000 405,000 2022 $2,025,000 0 1,750,000 1,815,000 Required: 1. Compute the amount of revenue and gross profit or loss to be recognized in 2021...
Assume Nortel Networks contracted to provide a customer with Internet infrastructure for $2,960,000. The project began in 2021 and was completed in 2022. Data relating to the contract are summarized below: 2022 $2,300,000 Costs incurred during the year Estimated costs to complete as of 12/31 Billings during the year Cash collections during the year 2021 $ 380,000 1,520,000 540,000 510,000 1, 820,000 1,850,000 Required: 1. Compute the amount of revenue and gross profit or loss to be recognized in 2021...
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