Hello I am with connect homework for chapter 5 of Sceland 8thedition. This is the problem. Do you have it?
====
Assume Nortel Networks contracted to provide a customer withInternet infrastructure for $2,000,000. The project began in 2016and was completed in 2017. Data relating to the contract aresummarized below:
2016
2017
Costs incurred during the year
$
300,000
$
1,575,000
Estimated costs to complete as of 12/31
1,200,000
0
Billings during the year
380,000
1,620,000
Cash collections during the year
250,000
1,750,000
Required:
1.
Compute the amount of revenue and gross profit or loss to berecognized in 2016 and 2017 assuming Nortel recognizes revenue overtime according to percentage of completion. (Usepercentages as calculated and rounded in the table below to arriveat your final answer. Losses and expenses should be indicated witha minus sign.)
Hello I am with connect homework for chapter 5 of Sceland 8thedition. This is the problem. Do you have it?
====
Assume Nortel Networks contracted to provide a customer withInternet infrastructure for $2,000,000. The project began in 2016and was completed in 2017. Data relating to the contract aresummarized below: |
2016 | 2017 | |||||
Costs incurred during the year | $ | 300,000 | $ | 1,575,000 | ||
Estimated costs to complete as of 12/31 | 1,200,000 | 0 | ||||
Billings during the year | 380,000 | 1,620,000 | ||||
Cash collections during the year | 250,000 | 1,750,000 | ||||
Required: |
1. | Compute the amount of revenue and gross profit or loss to berecognized in 2016 and 2017 assuming Nortel recognizes revenue overtime according to percentage of completion. (Usepercentages as calculated and rounded in the table below to arriveat your final answer. Losses and expenses should be indicated witha minus sign.) |
Related questions
In 2016, the Westgate Construction Company entered into acontract to construct a road for Santa Clara County for$10,000,000. The road was completed in 2018. Information related tothe contract is as follows: |
| 2016 | 2017 | 2018 | |||||||
| Costincurred during the year | $ | 2,059,000 | $ | 2,627,000 | $ | 2,655,400 | |||
| Estimated costs to complete as of year-end | 5,041,000 | 2,414,000 | 0 | ||||||
| Billings during the year | 2,190,000 | 2,496,000 | 5,314,000 | ||||||
| Cashcollections during the year | 1,895,000 | 2,400,000 | 5,705,000 | ||||||
| Westgate recognizes revenue over timeaccording to percentage of completion. |
| Required: |
| Calculate the amount of revenue and gross profit to berecognized in each of the three years 2. Record construction costs for all 3 years Record progress billings for all 3 years Record cash collections for all 3 years Record gross profit for all 3 years 3. Complete the information required below to prepare a partialbalance sheet for 2016 and 2017 showing any items related to thecontract. Indicate whether any of the amounts shown are contractassets or contract liabilities.
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
