Expected value of bonus for the six months: 80%*40,000+20%*(-40,000) = $24,000 | |||||||
Expected bonus allocated to the first month: $24,000/6 = $4,000 | |||||||
Cash a/c Dr. | 40000 | ||||||
Bonus receivable a/c Dr. | 4000 | ||||||
To Service revenue | 44000 | ||||||
On January 1, Revis Consulting entered into a contract to complete a cost reduction program for...
On January 1, Revis Consulting entered into a contract to complete a cost reduction program for Green Financial over a six-month period. Revis will receive $22,400 from Green at the end of each month. If total cost savings reach a specific target, Revis will receive an additional $11,200 from Green at the end of the contract, but if total cost savings fall short, Revis will refund $11,200 to Green. Revis estimates an 80% chance that cost savings will reach the...
On January 1, Revis Consulting entered into a contract to complete a cost reduction program for Green Financial over a six-month period. Revis will receive $32,000 from Green at the end of each month. If total cost savings reach a specific target, Revis will receive an additional $16,000 from Green at the end of the contract, but if total cost savings fall short, Revis will refund $16,000 to Green. Revis estimates an 80% chance that cost savings will reach the...
On January 1, Revis Consulting entered into a contract to complete a cost reduction program for Green Financial over a six-month period. Revis will receive $68,000 from Green at the end of each month. If total cost savings reach a specific target, Revis will receive an additional $34,000 from Green at the end of the contract, but if total cost savings fall short, Revis will refund $34,000 to Green. Revis estimates an 80% chance that cost savings will reach the...
On January 1, Revis Consulting entered into a contract to complete a cost reduction program for Green Financial over a six-month period. Revis will receive $36.800 from Green at the end of each month. If total cost savings reach a specific target, Revis will receive an additional $18.400 from Green at the end of the contract, but if total cost savings fall short, Revis will refund $18.400 to Green. Revis estimates an 80% chance that cost savings will reach the...
help On January 1, Revis Consulting entered into a contract to complete a cost reduction program for Green Financial over a six-month period. Revis will receive $44,000 from Green at the end of each month. If total cost savings reach a specific target, Revis will receive an additional $22,000 from Green at the end of the contract, but if total cost savings fall short, Revis will refund $22,000 to Green Revis estimates an 80% chance that cost savings will reach...
Velocity, a consulting firm, enters into a contract to help Burger Boy, a fast-food restaurant, design a marketing strategy to compete with Burger King. The contract spans eight months. Burger Boy promises to pay $36,000 at the end of each month. At the end of the contract, Velocity either will give Burger Boy a refund of $12,000 or will be entitled to an additional $12,000 bonus, depending on whether sales at Burger Boy at year-end have increased to a target...
Velocity, a consulting firm, enters into a contract to help Burger Boy, a fast-food restaurant, design a marketing strategy to compete with Burger King. The contract spans eight months. Burger Boy promises to pay $69,000 at the end of each month. At the end of the contract, Velocity either will give Burger Boy a refund of $23,000 or will be entitled to an additional $23,000 bonus, depending on whether sales at Burger Boy at year-end have increased to a target...
Velocity, a consulting firm, enters into a contract to help Burger Boy, a fast-food restaurant, design a marketing strategy to compete with Burger King. The contract spans eight months. Burger Boy promises to pay $72,000 at the end of each month. At the end of the contract, Velocity either will give Burger Boy a refund of $24,000 or will be entitled to an additional $24,000 bonus, depending on whether sales at Burger Boy at year-end have increased to a target...
Velocity, a consulting firm, enters into a contract to help Burger Boy, a fast-food restaurant, design a marketing strategy to compete with Burger King. The contract spans eight months. Burger Boy promises to pay $84,000 at the end of each month. At the end of the contract, Velocity either will give Burger Boy a refund of $28,000 or will be entitled to an additional $28,000 bonus, depending on whether sales at Burger Boy at year-end have increased to a target...
Velocity, a consulting firm, enters into a contract to help Burger Boy, a fast-food restaurant, design a marketing strategy to compete with Burger King. The contract spans eight months. Burger Boy promises to pay $66,000 at the beginning of each month. At the end of the contract, Velocity either will give Burger Boy a refund of $22,000 or will be entitled to an additional $22,000 bonus, depending on whether sales at Burger Boy at year-end have increased to a target...