ZuoTi.Pro
Question

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 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.

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Percentage of Completion Choose Numerator Choose Denominator Actula Cost to Date Estimated Total Costs % Completion % CompletGross Profit and Loss To be Recognised 2) Revenue Gross Profit 2021 0 0 176000 2022 2300000 3) Current Assets Accounts ReceivWorking Notes 2022 2021 Contract 2300000 2300000 Cost incurred During the Period Estimated Costs to Complete as of 12/31 Esti

0 0
Add a comment
Know the answer?
Add Answer to:
Assume Nortel Networks contracted to provide a customer with Internet infrastructure for $2,300,000. The project began...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • 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 $2,700,000. 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...

  • 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...

  • 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: 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 2022 $1,720,000 0 1,670,000 1,775,000 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 $2,350,000. The project began...

    Assume Nortel Networks contracted to provide a customer with Internet infrastructure for $2,350,000. The project began in 2021 and was completed in 2022. Data relating to the contract are summarized below: 2022 $1,830,000 Costs incurred during the year Estimated costs to complete as of 12/31 Billings during the year Cash collections during the year 2021 $ 328,000 1,312,000 436,000 341,000 1,690,000 1,785,000 Required: 1. Compute the amount of revenue and gross profit or loss to be recognized in 2021 and...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT