ABC commits to manufacturing 30 rocking horses for an amusement park in Texas. Under the terms...
ABC commits to manufacturing 30 rocking horses for an amusement park in Texas. Under the terms of the contract, the client will pay ABC a total of $ 60,000, and can cancel the contract if they choose to do so as long as they pay for the completed work. ABC believes that if the customer cancels the contract, they could sell the rocking horses to another amusement park and still make a profit. The manufacturing contract is expected to last six months. As of December 31, 2019, 80% of the wheelies were finished and stored in the ABC warehouse to be delivered when the order is completed. How much income can ABC recognize in 2019 from this contract?
Select one:
a. $ 0
b. $ 48,000
c. $ 60,000
d. $ 12,000
Homework Answers
answer: $60000
the ABC company should recognize the $60000 as income,because under GAAP revenue is recorded when it is earned not when recieved.as long as the contract is not cancelled the ABC company should record the income for the contract value.
Add Answer to:
ABC commits to manufacturing 30 rocking horses for an amusement park in Texas. Under the terms...
Dowell Manufacturing contracts to produce bumper cars for Five Flags Parks. Under the terms of the...
Dowell Manufacturing contracts to produce bumper cars for Five Flags Parks. Under the terms of the contract, Five Flags will pay Dowell a total of $60,000 when bumper cars are delivered six months later, and Five Flags can cancel the contract but must pay Dowell for work completed. Dowell believes that, if Five Flags cancelled the contract, Dowell could not sell the bumper cars to another park. As of December 31, 2020, the job is 80% complete. How much revenue...
Dowell Manufacturing contracts to produce bumper cars for Five Flags Parks. Under the terms of the...
Dowell Manufacturing contracts to produce bumper cars for Five Flags Parks. Under the terms of the contract, Five Flags will pay Dowell a total of $60,000 when bumper cars are delivered six months later, and Five Flags can cancel the contract but must pay $48,000 to Dowell. Dowell believes that, if Five Flags cancelled the contract, Dowell could sell the bumper cars to another park. As of December 31, 2020, the job is 20% complete. How much revenue should Dowell...
Submit to complete this assessment Question 23 of estion 23 1 points Save A Dowol Manufacturing...
Submit to complete this assessment Question 23 of estion 23 1 points Save A Dowol Manufacturing contracts to produce bumper cars for Five Flags Parks Under the terms of the contract, Five Flags will pay Dowell a total of $60,000 when bumper cars are delivered six months later, and Five Flags can cancel the contract but must pay $12.000 to Dowell. Dowel believes that if Five Flags cancelled the contract, Dowell could sell the bumper cars to another park. As...
MULTIPLE-CHOICE questions E1-1.ABC Engineering use cost method to cart engineering use cost method to calculate the...
MULTIPLE-CHOICE questions E1-1.ABC Engineering use cost method to cart engineering use cost method to calculate the stage of completion of its construction act. Total estimated contract costs of their contract are $100 million. In the first year of their contract, ABC Engineering has incurred the following costs: Cost of purchase of raw materials worth $10 million ($5 million of which are unused by the year end) 2. Payment of salaries and wages of $5 million ($1 million of accrued salaries...
Dowell Manufacturing contracts to produce bumper cars for Five Flags Parks. Under the terms of the contract, Five Flags will pay Dowell a total of $60,000 when bumper cars are delivered six months later, and Five Flags can cancel the contract but must pay $48,000 to Dowell. Dowell believes that, if Five Flags cancelled the contract, Dowell could sell the bumper cars to another park. As of December 31, 2020, the job is 20% complete. How much revenue should Dowell...
Submit to complete this assessment Question 23 of estion 23 1 points Save A Dowol Manufacturing contracts to produce bumper cars for Five Flags Parks Under the terms of the contract, Five Flags will pay Dowell a total of $60,000 when bumper cars are delivered six months later, and Five Flags can cancel the contract but must pay $12.000 to Dowell. Dowel believes that if Five Flags cancelled the contract, Dowell could sell the bumper cars to another park. As...
MULTIPLE-CHOICE questions E1-1.ABC Engineering use cost method to cart engineering use cost method to calculate the stage of completion of its construction act. Total estimated contract costs of their contract are $100 million. In the first year of their contract, ABC Engineering has incurred the following costs: Cost of purchase of raw materials worth $10 million ($5 million of which are unused by the year end) 2. Payment of salaries and wages of $5 million ($1 million of accrued salaries...
Most questions answered within 3 hours.
-
accorsing to the data from thw college board, the mean wuantitive
Sat score for s demale...
asked 43 minutes ago -
1- What are 5 general characteristics of Botticelli’s
paintings?
2- Describe 5 important traits of Flemish...
asked 2 hours ago -
A golfer claims that his average golf score at the course he
plays regularly is less...
asked 2 hours ago -
On May 1, First Bank perfected a security interest in Debtor’s
inventory. On June 1, Bob...
asked 3 hours ago -
A new kind of typhoid shot is being developed by a medical
research team. The old...
asked 5 hours ago -
Write a chemical equation for these reactions. (Use
the lowest possible whole number coefficients.) Include
states-of-matter...
asked 7 hours ago -
For each of the Z-scores below, determine two probabilities
(show four three decimal places): (1) the...
asked 7 hours ago -
Oxidative phosphorylation is achieved through chemiosmotic
coupling, which turns chemical energy into osmotic potential energy
that...
asked 10 hours ago -
Hollywood Shoes would like to maintain their cash account at a
minimum level of $64,000, but...
asked 10 hours ago -
Proteins CtrA-P, DnaA, and GcrA behave similarly to what
molecule in the Eukaryotic Cell Cycle?
asked 10 hours ago -
TRUE OR FALSE
In case of a competitive tender procedure, in the request for
quotation, the...
asked 10 hours ago -
I am a little behind please provide some explanation, will
provide thumbs up.
This question considers...
asked 10 hours ago