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UUD E 6-2 Service revenue L06-3 3. Under what circumstances can sellers Telug u Ski West, Inc., operates a downhill ski area near Lake Tahoe, California. An all-day adult lift ticket can be pur- chased for $85. Adult customers also can purchase a season pass that entitles the pass holder to ski any day during the season, which typically runs from December 1 through April 30. Ski West expects its season pass holders to use their passes equally throughout the season. The company's fiscal year ends on December 31. On November 6, 2021. Jake Lawson purchased a season pass for $450. Required: 1. When should Ski West recognize revenue from the sale of its season passes? 2. Prepare the appropriate journal entries that Ski West would record on November 6 and December 31. 3. What will be included in the Ski West 2021 income statement and balance sheet related to the sale of the sea son pass to Jake Lawson? E6-19 Long-term contract: revenue recognition over time and at a point in time LOG-9 Assume Nortel Networks contracted to provide a customer with Intemet infrastructure for $2,000,000. The proj ect began in 2021 and was completed in 2022. Data relating to the contract are summarized below: 2021 2022 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 be recognized in 2021 and 2022 assuming Noriel 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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