Assume Nortel Networks contracted to provide a customer with Internet infrastructure for $2,450,000. The project began...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
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: Costs incurred during the year Estimated costs to complete as of 12/31 Billings during the year Cash collections during the year 2021 $ 336,000 1,344,000 446,000 1,710,000 361,000 1,795,000 2022 $1,870,000 0 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 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: Costs incurred during the year Estimated costs to complete as of 12/31 Billings during the year Cash collections during the year 2022 $1,870,000 2021 $ 336,000 1,344,000 446,000 1,710,000 361,000 1,795,000 0 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 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: Costs incurred during the year Estimated costs to complete as of 12/31 Billings during the year Cash collections during the year 2021 $ 336,000 1,344,000 446,000 1,710,000 361,000 1,795,000 2022 $1,870,000 0 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 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: Costs incurred during the year Estimated costs to complete as of 12/31 Billings during the year Cash collections during the year 2021 $ 336,000 1,344,000 446,000 1,710,000 361,000 1,795,000 2022 $1,870,000 0 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 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: Costs incurred during the year Estimated costs to complete as of 12/31 Billings during the year Cash collections during the year 2022 $1,870,000 2021 $ 336,000 1,344,000 446,000 1,710,000 361,000 1,795,000 0 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 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: Costs incurred during the year Estimated costs to complete as of 12/31 Billings during the year Cash collections during the year 2021 $ 336,000 1,344,000 446,000 1,710,000 361,000 1,795,000 2022 $1,870,000 0 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
Expert Answer:
Answer rating: 100% (QA)
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 t... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-1260481952
10th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
Posted Date:
Students also viewed these accounting questions
-
In problem, (a) Find the domain of each function. (b) Locate any intercepts. (c) Graph each function. (d) Based on the graph, find the range. (e) Is f continuous on its domain? f(x) = X 1 3x if -4 <...
-
In 2019, Firm X had revenue of $200 million, costs excluding depreciation of $70 million, depreciation expense of $20 million, interest expense of $40 million and capital expenditure of $15 million....
-
Analyze the data in Exercise 7.29 using an average sample size. In Exercise 7.29 TABLE 7E.10 Data for Exercise 7.29 Total Vsit Total Visit Week Requests Required Week Requests Required 2 25 3 250 4...
-
A sample of adults and teenagers were asked about the type of movies they like best. The collected data is grouped in the below table: Comedy Action Science Fiction Total Teenagers 40 60 50 150...
-
Pam Corporation paid $7,200,000 for 360,000 shares of Sun Corporation's outstanding voting common stock on January 1, 2016, when the stockholders' equity of Sun consisted of (in thousands): 10%...
-
a. In general, what is a type I error? In general, what is a type II error? b. For the hypothesis test in Exercise 7, write a statement that would constitute a type I error, and write another...
-
Pricing decisions given two scenarios (Learning Objective 3)} Bennett Builders builds 1,500-square-foot starter tract homes in the fast-growing suburbs of Atlanta. Land and labor are cheap, and...
-
A housing development is served by a water tower with the water level maintained between 20 and 30 meters above the ground, depending on demand and water availability. Responding to a residents...
-
Casper used the following assets in his Schedule C trade or business in the tax year 2 0 2 3 . Casper is a new client and unfortunately does not have a copy of his prior year's tax return. He recalls...
-
The file AirportTraffic contains the number of total passengers and the annual rate of change in passenger traffic for 50 airports. a. Construct a 95% confidence interval estimate for the population...
-
Cognitive Behavioral Approaches to Therapy Define CBT: Used to treat: Examples of thoughts that it would examine: Define mindfulness: Define humanistic: Used to treat: Methods Client-centered therapy...
-
Karen owns 150 shares of Runtask, a mobile marketplace company. The current share price for Runtask stocks is $35.95. What is the value of the Runtask stock that Karen owns
-
A pizza place advertises that they have 2 types of crust (round, square) and 5 toppings (pepperoni, sausage, bacon, green peppers, mushrooms). You call and order a pizza with 1 topping and tell the...
-
The covariance between the market return on the shares in the company COV and the return on the market portfolio is 0.02. The standard deviation of the return on the shares in COV is 20%. The...
-
MNO issues a $77,033, 9-month, 3.6% simple interest note for equipment on August 1. How much interest accrues by December 31 ?
-
How do advanced operating systems mitigate security vulnerabilities such as privilege escalation attacks through techniques like address space layout randomization (ASLR) and control-flow integrity...
-
2. 4x 2 - 22x+28 = 0
-
Clark, PA, has been engaged to perform the audit of Kent Ltd.s financial statements for the current year. Clark is about to commence auditing Kents employee pension expense. Her preliminary enquiries...
-
[This problem is a variation of P 123, modified to cause the investment to be accounted for under the fair value option.] Fuzzy Monkey Technologies, Inc., purchased as a long-term investment $80...
-
As part of its executive compensation plan, Vertovec Inc. granted 54,000 of its no-par common shares to executives, subject to forfeiture if employment is terminated within three years. Vertovecs...
-
GlaxoSmithKline Plc. (GSK) is a global pharmaceutical and consumer health-related products company located in the United Kingdom. The company prepares its financial statements in accordance with...
-
Audit Risk Model. Sonya Bagri, Chartered Accountant (CA), is auditing the sales of Barlaam Books, which owns two retail book stores in New Delhi. She has decided to allow only 25 incomplete sales...
-
What two types of internal control are there? What type of audit is performed in each area of internal control?
-
Do corporations believe fraud to be a problem according to KPMG reports? Explain.
Study smarter with the SolutionInn App