Assume Nortel Networks contracted to provide a customer with Internet infrastructure for $2,500,000. The project began in 2018 and was completed in 2019. Data relating to the contract are summarized b...
Assume Nortel Networks contracted to provide a customer with
Internet infrastructure for $2,500,000. 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 | $ | 340,000 | $ | 1,940,000 | ||
| Estimated costs to complete as of 12/31 | 1,360,000 | 0 | ||||
| Billings during the year | 451,000 | 1,720,000 | ||||
| Cash collections during the year | 270,000 | 1,800,000 | ||||
Required:
1. Compute the amount of revenue and gross profit
or loss to be recognized in 2018 and 2019 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 2018 and 2019 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 2018 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 2018 assuming this project does not qualify for revenue
recognition over time.
Homework Answers
| Ans 1) | Percentages of completion | |||
| Numerator/ | Denominator = | % complete to date | ||
| Cost incurred to date/ | Total estimated cost = | |||
| 2018 | 340,000 | 1700000 | 20% | |
| 2019 | 2,280,000 | 2,280,000 | 100% | |
| 2018 | ||||
| To date | Recognized in pys | Recognized in 2018 | ||
| Construction revenue | 500000 | 0 | 500000 | |
| Construction expense | 340000 | 0 | 340000 | |
| Gross profit (loss) | 160000 | 0 | 160000 | |
| 2019 | ||||
| To date | Recognized in pys | Recognized in 2018 | ||
| Construction revenue | 2,500,000 | 500000 | 2,000,000 | |
| Construction expense | 2,280,000 | 340000 | 1,940,000 | |
| Gross profit (loss) | 220,000 | 160000 | 60000 | |
| Ans 2) | Revenue | Gross profit (Loss) | ||
| 2018 | 0 | 0 | ||
| 2019 | 2,500,000 | 220,000 | ||
| Ans 3) | BALANCE SHEET PARTIAL-DECEMBER 31, 2018: | |||
| Current assets: | ||||
| Costs and profit in excess of billings | 49000 | |||
| Accounts receivable | 181000 | |||
| Ans 4) | BALANCE SHEET PARTIAL-DECEMBER 31, 2018: | |||
| Current assets: | ||||
| Accounts receivable | 101000 | |||
Add Answer to:
Assume Nortel Networks contracted to provide a customer with Internet infrastructure for $2,500,000. The project began in 2018 and was completed in 2019. Data relating to the contract are summarized b...
Assume Nortel Networks contracted to provide a customer with Internet infrastructure for $2,500,000. 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 $ 3
Assume Nortel Networks contracted to provide a customer with Internet infrastructure for $2,500,000. The project began in 2021 and was completed in 2022. Data relating to the contract are summarized below: 20212022Costs incurred during the year$340,000$1,940,000Estimated costs to complete as of 12/311,360,0000Billings during the year451,0001,720,000Cash collections during the year371,0001,800,000 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...
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 $2,000,000. 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...
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 $2,000,000. 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 $2,910,000. 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 $2,300,000. 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 $2.250,000. 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 $2,000,000. 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...
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 $2,000,000. 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...
Most questions answered within 3 hours.
-
In this part, calculate the present values. Use the Excel PV
function to compute the present...
asked 4 minutes ago -
A grammar is a 4-tuple G, G = (Ν, Σ, Π, Σ, S) where, Ν is...
asked 5 minutes ago -
Part 1. Primitive Types, Sorting, Recursion for
Homework.java
a) Implement the static method initializeArray that receives...
asked 1 hour ago -
Using C++, build a sorter that can rank a sequence of numbers in
a descending order....
asked 1 hour ago -
Derive ground state term symbols. Use notation 2S(1/2) for state
2S1/2
a) d5
b) f3
c)...
asked 1 hour ago -
A sample of size 31 will be drawn from a population with mean 39
and standard...
asked 2 hours ago -
What is the effect on the P-value when a test is changed from a
two-tailed hypothesis...
asked 2 hours ago -
I wish to estimate µ, the mean of a population. After I collect
and an-
alyze...
asked 2 hours ago -
At a local university, you poll a group of 115 students and find
that 37 of...
asked 2 hours ago -
Gladstone company tracks the number of units purchased and sold
throughout each accounting period but applies...
asked 2 hours ago -
When determining if a molecule's configuration is E or Z, what
determines the higher priority groups?
asked 2 hours ago -
13. What is the amount
of conversion cost transferred to finished goods? (Round
your intermediate calculations...
asked 2 hours ago