Total Expected Hours | 1100 | |||
Maximum Payment receivable for___ Hours | 1000 | |||
% of Hours for which payment receivable | ||||
=1000/1100 | 90.91% | |||
Month | Actual Hours (A) | Hours for which Payment receivable (B=A*90.91%) | Rate per Hour (R ) | Revenue to be recognized (B*R) |
January | 120 | 109.09 | $200 | $21,818.18 |
February | 200 | 181.82 | $200 | $36,363.64 |
March | 350 | 318.18 | $200 | $63,636.36 |
Total | $1,21,818.18 |
3. What's the Revenue (WTR) Company enters into a 6 month contract to provide consulting services...
3. What's the Revenue (WTR) Company enters into a 6 month contract to provide consulting services related to a customer's computer system. The customer agrees to pay $200 per hour for the services up to a maximum of $200,000. In January and February WTR performs 120 and 200 hours of service, respectively, and believes it is highly unlikely that the overall contract work will exceed 1,000 hours. During March, WTR discovered a significant error in the customer's computer code related...
1. During June 2019 Needs Business Company (NBC) runs a special offer whereby every customer who purchases a 4th of July picnic set receives a coupon for 2 dozen free gourmet hot dogs during the first week of July (presumably for use at a 4th of July picnic!). Two dozen gourmet hot dogs normally sell for $20. In a similar promotion run in October 2018 (2 free pumpkin pies during the week of Thanksgiving when a customer purchased inflatable turkey...
Sanjeev enters into a contract offering variable consideration. The contract pays him $1,000/month for six months of continuous consulting services. In addition, 40% chance the contract will pay an additional $3,000, depending on the outcome of the consulting contract. Sanjeev used the most likely amount to determine transaction price. After Sanjeev has recognized revenue for two months of the contract, he changes his assessment of the chance the contract will pay him $3000 up to 70%. How much revenue would...
Sanjeev enters into a contract offering variable consideration. The contract pays him $1,000/month for six months of continuous consulting services. In addition, 40% chance the contract will pay an additional $3,000, depending on the outcome of the consulting contract. Sanjeev used the most likely amount to determine transaction price. After Sanjeev has recognized revenue for two months of the contract, he changes his assessment of the chance the contract will pay him $3000 up to 70%. How much revenue would...
On May 1, 2021, Varga Tech Services signed a $30,000 consulting contract with Shaffer Holdings. The contract requires Varga to provide computer technology support services whenever requested over the period from May 1, 2021, to April 30, 2022, with Shaffer paying the entire $30,000 on May 1, 2021. How much revenue should Varga recognize in 2021? (Do not round intermediate calculation.) Revenue
On May 1, 2021, Varga Tech Services signed a $93,000 consulting contract with Shaffer Holdings. The contract requires Varga to provide computer technology support services whenever requested over the period from May 1, 2021, to April 30, 2022, with Shaffer paying the entire $93,000 on May 1, 2021. How much revenue should Varga recognize in 2021? (Do not round intermediate calculation.) Revenue
On May 1, 2018, Varga Tech Services signed a $117,000 consulting contract with Shaffer Holdings. The contract requires Varga to provide computer technology support services whenever requested over the period from May 1, 2018, to April 30, 2019, with Shaffer paying the entire $117,000 on May 1, 2018. How much revenue should Varga recognize in 2018?
please give explanation
On May 1, 2021, Varga Tech Services signed a $126,000 consulting contract with Shaffer Holdings. The contract requires Varga to provide computer technology support services whenever requested over the period from May 1, 2021, to April 30, 2022 with Shaffer paying the entire $126,000 on May 1, 2021 How much revenue should Varga recognize in 2021? (Do not round intermediate calculation.) Revenue
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A global engineering company accepts a consulting engagement for a firm price of $8,000 in March, does the work in April, bills the client in May, and is paid in June. In completing the engagement, the company incurs expenses that are specifically related to this engagement as follows: none in March, $4,500 in April, and none in May and June. How much expense should be deducted from revenue in the month(s) when the revenue is recognized? Expenses of...
Question 6 2.5 pts Katheryn Hudson Corp. hired an employee on November 1, 2020. The employee will be paid an hourly wage of $20. The employee worked 150 hours during November and was paid $3,000 on December 7. The employee worked 160 hours during December and will be paid $3,200 on January 7, 2021. How much in wages expense for this employee will Hudson report in its fourth- quarter income statement, ending December 31, 2020? (just enter the number, without...