Question: was completed in 2022 Data relating to the contract are summarized below: Costs incurred during the year 2021 2022 Estimated costs to complete as of

was completed in 2022 Data relating to the contract are summarized below: Costs incurred during the year 2021 2022 Estimated costs to complete as of 12//31 300,000 $1,575,000 Billings during the year 1,200,000 0 Cash collections during the year 380,000 1,620,000 Required: 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. 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. Prepare a partial balance sheet to show how the information related to this contract would be presented at the end of 2021

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