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Assume Nortel Networks contracted to provide a customer with Internet infrastructure for $2,200,000. The project...

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Accounting

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Assume Nortel Networks contracted to provide a customer with Internet infrastructure for $2,200,000. The project began in 2016 and was completed in 2017 . Data relating to the contract are summarized below: Required: 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 1. completion. (Use percentages as calculated and rounded in the table below to arrive at your final answer. Losses and expenses should be indicated with a minus sign.) 2. Compute the amount of revenue and gross profit or loss to be recognized in 2016 and 2017 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 2016 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 2016 assuming this project does not qualify for revenue recognition over time

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