Possible Price | Possibility | Expected Amount |
239,200.00 | 80% | 191,360.00 |
202,400.00 | 20% | 40,480.00 |
Expected value | 231,840.00 |
1)
Debit | Credit | |
Cash | 36,800.00 | |
Bonus receivable | 1,840.00 | |
Service revenue | 38,640.00 |
2)
Debit | Credit | |
Cash | 18,400.00 | |
Bonus receivable | 11,040.00 | |
Service revenue | 7,360.00 |
3)
Debit | Credit | |
Service revenue | 29,440.00 | |
Bonus receivable | 11,040.00 | |
Cash | 18,400.00 |
On January 1, Revis Consulting entered into a contract to complete a cost reduction program for...
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...
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 $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 a client over a six-month period. Revis will receive $40,000 from the client at the end of each month. If total cost savings reach a specific target, Revis will receive an additional $40,000 bonus from the client at the end of the contract. However, if total cost savings fall short of the target, Revis must refund $40,000 to the customer. Revis estimates a 80%...
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 $63,000 at the end of each month. At the end of the contract, Velocity either will give Burger Boy a refund of $21,000 or will be entitled to an additional $21,000 bonus, depending on whether sales at Burger Boy at year-end have increased to a target...
Gomez Corp. uses the allowance method to account for uncollectibles. On January 31, it wrote off an $1,000 account of a customer, C. Green. On March 9, it receives a $500 payment from Green. Prepare the journal entry for January 31 and March 9. Assume no additional money is expected from Green for March 9. View transaction list Journal entry worksheet 1 2 Record the write-off of Green's $1,000 account Note: Enter debits before credits. Credit Date General Journal Debit...
o Arrow Co. entered into a contract with a customer for $450,000. The contract is for the delivery of equipment and a 3-year service maintenance contract for the equipment. Arrow sells separately the equipment for a selling price of $428,000, and the maintenance contract for three years for $121,200. The equipment was delivered on 1 June 1 20X1. Arrow has a 30 November year-end. Required: Prepare the journal entries required to record the revenue related to this contract during the...
Gomez Corp. uses the allowance method to account for uncollectibles. On January 31, it wrote off an $1,500 account of a customer, C. Green. On March 9, it receives a $1,000 payment from Green. 1. Prepare the journal entry for January 31 2. Prepare the journal entries for March 9; assume no additional money is expected from Green. View transaction list View transaction list Journal entry worksheet 1 2 3 Record the write-off of Green's $1,500 account Note: Enter debits...
On February 1, 2021, Arrow Construction Company entered into a three-year construction contract to build a bridge for a price of $8,500,000. During 2021, costs of $2,200,000 were incurred, with estimated costs of $4,200,000 yet to be incurred. Billings of $2,740,000 were sent, and cash collected was $2,450,000. In 2022, costs incurred were $2,740,000 with remaining costs estimated to be $3,900,000. 2022 billings were $2.990,000, and $2,675,000 cash was collected. The project was completed in 2023 after additional costs of...