Assume Nortel Networks contracted to provide a customer with Internet infrastructure for $2,750,000. The project began in 2021 and was completed in 2022. Data relating to the contract are summarized below:

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.

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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. (Loss amounts should be indicated with a minus sign. Use percentages as calculated and rounded in the table below to arrive at your final answer.)

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. (Loss amounts should be indicated with a minus sign.)

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.

repare 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.

Does the accounting change in revenue recognition for a new system which requires the recognition of deferred revenue matter to managers?

From the following, select the accurate equations that relate to revenue, expenses, and profits. *Multiple answers may apply

A. Revenues = Profit + Expenses

B. Profit = Revenue - Expenses

C. Expenses = Revenue - Profit

D. Profit = Revenues + Expenses

E. Expenses = Profit + Revenues

**Letter B answer only is wrong.

A company provides subscriptions to magazines. On October 1st, it collects $10 million and credits to sales revenue. On December 31st, the subscription is 1/3 expired. What would be the adjusting entry at year-end? I don't remember the answer choices but I think they all had unearned revenue and subscription revenue.

1.) What are some conditions that a company would recognize revenue over a period of time?

2.) Why are companies required to recognize some revenue over a period of time?

3.) Looking at the principle and process, what are some areas that you think a company could make some errors in recognizing revenue?

Indicate whether True or False

a)In perfect competition, price is equal to marginal revenue while in monopoly price is greater than marginal revenue

b)No supply curve exists for a monopoly in the sense that a supply curve exists for a perfectly competitive firm

c)Because the marginal revenue curve for a monopolist lies below its demand curve,the profit -maximizing price of the monopolist will be above marginal cost

d)The profit- maximizing level of output for a monopolist is the one at which marginal revenue equals marginal cost

You are considering decreasing your wheat production by 50 acres and planting 50 more acres of potatoes. You have decided to use a partial budget to make your decision. Fill in each box with an example or description of what should be included and answer the questions below. Additional Revenue Reduced Revenue Reduced Costs Additional Costs

What costs would not need to be considered in this partial budget?

How would you make the decision?

Build a probability model, compute the average revenue per passenger, and compute the corre- sponding standard deviation. About how much revenue should the airline expect for a flight of 120 passengers? With what standard deviation? Note any assumptions made and whether they are justifiedBuild a probability model, compute the average revenue per passenger, and compute the corre- sponding standard deviation. About how much revenue should the airline expect for a flight of 120 passengers? With what standard deviation? Note any assumptions made and whether they are justified

1. Consider the case of a good for which the absolute value of the price elasticity of demand is greater than one. A fall in price would be associated with

Group of answer choices

A         a marginal revenue greater than zero and a rise in total revenue

B          a marginal revenue less than zero and a fall in total revenue

2. Consider the case of a good for which the absolute value of the price elasticity of demand is less than one. A fall in price would be associated with

Group of answer choices

A         a marginal revenue greater than zero and a rise in total revenue

B         a marginal revenue less than zero and a fall in total revenue

3. The absolute value of the price elasticity of demand of a straight-line demand curve

Group of answer choices

A         is constant and equal to one

B         varies over its length from infinity to zero (as price falls)

C          varies over its length from zero to infinity (as price falls)

4. A drought that destroys half of all farm crops would be good for farmers if the price elasticity of demand for farm crops were

Group of answer choices

A         elastic

B         inelastic

C          equal to one

5. Although such a drought might be good for farmers, an individual farmer would not destroy his own crops in the absence of a drought because the price elasticity of demand for his own crops is

Group of answer choices

A         equal to one

B         infinitely elastic

C          infinitely inelastic