Rothbart Manufacturing agrees to manufacture bumper cars for Banners AmusementParks. Under the terms of the contract, Banners will pay Rothbart a total of $78,000,and Banners can cancel the contract if it so chooses but must pay Rothbart for workcompleted. Rothbart believes that, if Banners cancelled the contract, Rothbart could sellthe bumper cars to another amusement park and still make a profit. The manufacturingcontract is expected to last six months, and as of December 31, 2024, the job is 80%complete. How much revenue should Rothbart recognize in 2024 for this contract?Multiple Choice$0O $78,000$15,600$62,900

Revenue recognition When the title to the items moves from the seller to the buyer, the revenue…

the bumper cars to another amusement park and still make a profit. The manufacturing contract is expected to last six months, and as of December 31, 2024, the job is 80% complete. How much revenue should Rothbart recognize in 2024 for this contract? Multiple Choice $0 $78,000 O $15,600 $62,900

the bumper cars to another amusement park and still make a profit. The manufacturing contract is expected to last six months, and as of December 31, 2024, the job is 80% complete. How much revenue should Rothbart recognize in 2024 for this contract? Multiple Choice $0 $78,000 O $15,600 $62,900

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The Porter Beverage Factory owns a building for its operations. Porter uses only half of the building and is considering two options for the unused space. The Popcorn Store would like to purchase the half of the building that is not being used for $324,000. A 6% commission would have to be paid at the time of purchase. The Porter Beverage would like to lease the half of the building for the next 5 years at $85,500 each year. Porter would have to continue paying $21,000 of property taxes each year and $4,000 of yearly insurance on the property, according to the proposed lease agreement. Determine the differential income or loss from the lease alternative. Enter a loss as a negative number.$fill in the blank 1
The Porter Beverage Factory owns a building for its operations. Porter uses only half of the building and is considering two options for the unused space. The Popcorn Store would like to purchase the half of the building that is not being used for $324,000. A 6% commission would have to be paid at the time of purchase. The Porter Beverage would like to lease the half of the building for the next 5 years at $85,500 each year. Porter would have to continue paying $21,000 of property taxes each year and $4,000 of yearly insurance on the property, according to the proposed lease agreement. Determine the differential income or loss from the lease alternative. Enter a loss as a negative number.
Swallow Corp. has a contract to construct a $5,000,000 cruise ship at an estimated cost of $4,000,000. The company will begin construction of the cruise ship in early January 2011 and expects to complete the project sometime in late 2014. Swallow Corp. has never constructed a cruise ship before, and the customer has never operated a cruise ship. Due to this and other circumstances, Swallow Corp. believes there are inherent hazards in the contract beyond the normal, recurring business risks. Swallow Corp. expects to recover all its costs under the contract. During 2011 and 2012, the company has the following activity: 2011 2012 Costs to date 980,000 $ $2,040,000 Estimated costs to complete 3,020,000 1,960,000 Progress billings during the year 1,000,000 1,000,000 Cash collected during the year 648,000 1,280,000 On its statement of financial position at December 31, 2012, what amount will be reported for accounts…
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