We have given the contract to an agency for the value of 17 Cr for the duration of 7 month with the LD clause of 0.5% of total contract price for each week's delay or part thereof, subject to maximum of 5% of total contract price. But agency has completed only 9 Cr in 10 month duration and closed the work, in this case how will calculate the LD amount?
Q: 1) Transactions for the month of July for Shelly's Bookstore were as follows: Purchases July 1 8…
A: Ending inventory is the amount of inventory that an entity has on hand, at the end of the period. It…
Q: Mr. A a piece of land and a car from her father on March 18, 2020, At inheritance, data on the…
A: Gross estateThe value of all the assets and property of a person or individual at the time of death…
Q: Worthington Company expects that cash sales will be 20% of total sales, credit card sales will be…
A: It is the process of undertaking plans to spend money. This plan enables the business in advance to…
Q: A corporation commences operations on January 1, 2019. It has the following account balances at…
A: The objective of this question is to calculate the retained earnings at the end of the year for a…
Q: Exercise 24-4 (Algo) Payback period, unequal cash flows, and depreciation adjustment LO P1 A machine…
A: The payback period is one of the techniques used in capital budgeting decisions. It depicts the time…
Q: Rodolfo works at Johnson Incorporated and is tasked with measuring costs. When Rodolfo identifies…
A: The correct answer is option D : Unfavorable varianceThe negative discrepancy between actual…
Q: Pine Corporation, a calendar-year corporation, was formed three years ago by its sole shareholder,…
A: Introduction:-A dividend is a payment given to stakeholders by a corporation. When a firm makes a…
Q: ABC Mart received a $20 freight bill for merchandise it purchased with freight terms of FOB shipping…
A: The term FOB shipping point is a contraction of the term Free on Board Shipping Point. The term…
Q: The Square Foot Grill, Incorporated issued $210,000 of 10-year, 7 percent bonds on July 1, Year 1,…
A: Bonds payable represent a form of long-term debt issued by a company that remains outstanding and…
Q: None
A: Special ordersThe company receives special orders at a point in time when the company has to decide…
Q: Grouper Company accumulates the following summary data for the year ending December 31, 2025, for…
A: Responsibility Accounting :The management of responsibility centers by the means of pre-determined…
Q: Scenario a. Roger's, Inc., already owns another restaurant in town and wants to expand. Roger's,…
A: Organizational expenses refer to costs incurred by a business in the process of establishing or…
Q: 14. Given the following date, calculate the open to buy. Sales: Reductions: Ending Inventory: Markup…
A: Open to buyThe strategy used for inventory management in the company is to estimate the units or…
Q: A new factory manager was hired for a company that was experiencing slow production rates and lower…
A: C. unfavorable direct labor cost varianceExplanation:CORRECT OPTION:The situation described in the…
Q: Determine Huston's Goods AVAILABLE for sale in dollars. QUESTION 8 Determine Huston's ending…
A: Inventory Valuation is a method of calculating the value of stock at the end of an accounting…
Q: Cost and fair value data for the trading debt securities of Crane Company at December 31, 2022, are…
A: Fair value of the securities means actual replacement value of the securities in the market.…
Q: An apartment building was acquired in 2014 by an individual taxpayer. The depreciation taken on the…
A: Unrecaptured § 1250 gain is an income tax provision. The unrecaptured § 1250 gain helps to recapture…
Q: None
A: Budget means the expected value of future. Budget will be compared with actual value and variance is…
Q: The following selected transactions relate to liabilities of Pacific Coast Adventures. Pacific…
A: The promissory note is a promise made by the borrower to repay the debts on maturity with interest…
Q: 7. The QBI Deduction is: a. 20% of QBI or 20% of taxable income without net capital gains, whichever…
A: The correct answer is:b. 20% of QBI or 20% of taxable income without net capital gains, whichever is…
Q: Lance-Hefner Specialty Shoppes decided to use the dollar-value LIFO retail method to value its…
A: Solution:-This question is about using the dollar-value LIFO retail method to assess inventory value…
Q: The Regal Cycle Company manufactures three types of bicycles-a dirt bike, a mountain bike, and a…
A: The relevant cost refers to the cost which is avoidable and differs between the two alternatives and…
Q: Which of the following is NOT a valid use of Form 990-1? O Request credit for certain excise taxes…
A: Filling out Form 990-T is how exempt organizations:declare any unrelated business revenue.Determine…
Q: The Newburg Flyers operate a major sports franchise from a building in downtown Newburg. The…
A: It is a financial ratio used to analyse the financial statements with respect to the profitability…
Q: The following accounts appear in the ledger of Crane Inc. after the books are closed at December 31,…
A: The Capital stock of Stockholder Equity is sum of common stock, preferred stock and stock dividends…
Q: None
A: Inventory includes all the items, merchandise, and raw materials that are used by the business…
Q: None
A: Profitability is the measure of an organization's capacity to generate a profit relative to its…
Q: Required information Problem 10-53 (LO 10-2, LO 10-3) (Algo) [The following information applies to…
A: Depreciation:When the asset is purchased in the business it is used in the production process and is…
Q: Exercise 18-8 (Algo) Computing missing amounts in contribution margin income statements LO A1…
A: Income statement is a financial statement that shows profitability, total revenue and total…
Q: Missing Amounts from Balance Sheet and Income Statement Data One item is omitted in each of the…
A: The accounting equation is the equation that is based on the double accounting system. This shows…
Q: November December January February March Sales $9,500 $10,000 $11,000 $12,100 $13,310 All sales are…
A: The objective of the question is to calculate the net cash flows for the months of January,…
Q: Gassy Stores sells $400,000 of 12% bonds on June 1, 2022. The bonds pay interest on December 1 and…
A: Bonds are generally issued for a longer period of time which exceeds one year and thus, are…
Q: Hardev
A: The objective of the question is to calculate the cost of goods manufactured and the cost of goods…
Q: Given the information below, what is the gross profit? Sales revenue Accounts receivable Ending…
A: Gross profit is the amount of money earned by the entity after deducting cost of goods sold from the…
Q: Sunland Company produces three versions of baseball bats: wood, aluminum, and hard rubber. A…
A: A company generally sells multiple products and operates in different segments. Thus, if a…
Q: Hardev
A: The objective of the question is to determine whether Tesla should keep the old machine or replace…
Q: Acme Company has two divisions: Retail Division and Wholesale Division. The following data are for…
A: The contribution margin is calculated as the difference between the sales and variable cost. The…
Q: A manufactured product has the following Information for August. Direct materials Direct labor…
A: STANDARD COST CARDStandard Cost Card represents the Standard Cost Required for Unit of…
Q: Marigold's Vegetable Market had the following transactions during 2020: 1. Issued $46000 of par…
A: The cash flow statement is used to record the various activities for the inflow and outflow of cash…
Q: Differences between business income for income tax purposes and business income for accounting…
A: Business income:The business income refers to the earned income of the company's operations. It is…
Q: Heather Smith Cosmetics (HSC) manufactures a variety of products and is organized into three…
A: Passive income, or residual income, is revenue that is generated consistently with no work needed to…
Q: None
A: Return on common share equity:The return on common share equity is popularly known as the ROCE. It…
Q: Estimated ending inventory at retail Estimated ending inventory at cost Average cost application…
A: Retail inventory method-Retailers who resale products compute their estimated ending inventory…
Q: [The following information applies to the questions displayed below.) Hitzu Company sold a copier…
A: Warranty Expense is the expense incurred for the repair or replacement of goods that are sold.…
Q: Morganton Company makes one product and it provided the following information to help prepare the…
A: Total manufacturing costs is the total cost incurred in the manufacturing of product during the…
Q: U&I are partners sharing profits in 3:2. They decided to change this proportion to 2:3 from the…
A: Adjustment Entry-An adjusting journal entry is a n entry in a company's general ledger that occurs…
Q: Silver Company makes a product with peak sales in May of each year. Its sales budget for the second…
A: The schedule of expected cash collection shows the amount of cash to be collected in the future…
Q: Units-of-activity depreciation A truck acquired at a cost of $80,000 has an estimated residual value…
A: The Depreciation expense is charged on fixed assets as reduction in the value of the fixed assets…
Q: Rahul
A: The objective of this question is to prepare a production budget for Supermix for the months of…
Q: [The following information applies to the questions displayed below.] Morganton Company makes one…
A: CASH BUDGET Cash Budget is a detailed budget of cash income and cash expenditure incorporating both…
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
Unlock instant AI solutions
Tap the button
to generate a solution
Click the button to generate
a solution
- Oriole Company enters into a contract with a customer to build a warehouse for $401900, with a performance bonus of $101900 that will be paid based on the timing of completion. The amount of the performance bonus decreases by 20% per week for every week beyond the agreed-upon completion date. The contract requirements are similar to contracts that Oriole has performed previously, and management believes that such experience is predictive for this contract. Management estimates that there is a 50% probability that the contract will be completed by the agreed-upon completion date, a 30% probability that it will be completed 1 week late, and a 20% probability that it will be completed 2 weeks late. What is the total transaction price for this revenue arrangement? $489534 $503800 $483420 $463040The Naples Company uses the overtime/percentage-of-completion method and the point in- time/cost-to-cost method for its long-term construction contracts. On one such contract, Naples expects total revenues of P260,000 and total costs of P200,000. During the first year, Naples incurred costs of P50,000 and billed the customer P30,000 under the contract. At what net amount should Naples' Construction in Progress for this contract be reported at the end of the first year? a. P30,000 b.P35,000 c.P50,000 d.P65,000The Naples Company uses the percentage-of-completion method and the cost-to-cost method for its long-term construction contracts. On one such contract, Naples expects total revenues of P260,000. During the first year, Naples incurred costs pf P50,000 and billed the customer P30,000 under the contract. At what net amount should Naples Construction in Progress for this contract be reported at the end of the first year? a. P 35,000 b. 65,000
- Suppose that a contract is started on January 1, 2018, with an estimated completion date of December 31, 2019. The final contract price is P1,500,000. In the first year covering January 1 to December 31, 2018: Cost incurred amounted to P600,000. Half the work on the contract was completed. Certificates of work completed have been issued to the value of P750,000. It is estimated with reasonable certainty that further costs to completion in 2019 will be P600,000. Requirements: 1. The contract is certified at what percentage of completion? 2. At Dec 31, 2018, the entity will recognize how much profit? 3. At Dec 31, 2018, the entity will recognize how much contract asset?The Naples Company uses the percentage-of-completion method and the cost-to-cost method for its long-te construction contracts. On one such contract, Naples expects total revenues of 260,000 and total costs of 200,000. During the first year, Naples incurred costs of 50,000 and billed the customer 30,000 under the contract. At what net amount should Naple's Construction in Progress for this contract be reported at the end of the first year?Companies may directly expense incremental costs for contracts where the amortization period would be less than one month. less than one year. less than 20 months and contained within 2 fiscal years. more than one year.
- 2. On 1 July 20X7 The Qtakamire Company handed over to a client a new computer system. The contract price for the supply of the system and after sales support for 12 months was P800,000. Qtakamiro estimates the cost of the after-sales support at P120,000 and it normally marks up such costs by 50% when tendering for support contracts. Under PFRS 15, the revenue Qtakamiro should recognize in its financial year ended 31 December 20X7 is a. 620,000 b. 800,000 c. 710,000 d. NilA company enters into a contract to build a factory for a customer. The agreed price is P2M and the specified completion date is 31 October 2019. However, the contract provides that the company should receive an incentive payment of a further P250,000 if the factory is completed by 30 September 2019. Similarly, the price will be reduced by P250,000 if the factory The company estimates that there is a 15% probability that the factory will be completed by 30 September 2019, an 80% probability that it will be completed in October 2019 or November 2019 and a 5% probability that it will not be completed until after 30 November is not completed until after 30 November 2019. 2019. 20. What is the expected value of the transaction price for this contract? a. P2M C. P1.975M b. P2.125M d. P2.025MA firm enters into an 8-year contract for materials that cost $90,000 initially and $30,000/yr beginning at the end of the 4th year. The company decides to make a lump sum payment at the end of year 2 to pay off the remainder of the contract. What lump sum is necessary at 8% interest?
- On July 1, 20x1, Zevrek Co. enters into contract with a customer for the construction of a building. The contract price is P6M. However, Zevrek Co. is entitled to a bonus of P500,000 if the building is completed within 3 years. Zevrek Co. uses the cost-to-cost method in measuring its progress on the contract. At contract inception, Zevrek Co. estimates total contract costs of P4M. In 20x1, Zevrek Co. incurs total costs of P1,350,000. Due to bad weather conditions, Zevrek Co. does not expect that it can finish the building on time for it to be entitled to the bonus. The estimated costs to complete as of the end of 20x1 are P2.4M. In 20x2, Zevrek Co. incurs total costs of P2,260,000. Due to improvements in weather conditions, Zevrek Co. now believes that it is highly probable that the building will be finished on time and the bonus will be received. The estimated costs to complete as of the end of 20x2 are P190,000. Requirement: Compute for the revenues, costs of construction and…A contracting firm anticipates that it will incur costs in excess of the contract price on a particular contract. The firm has completed two years of work but the contract is only 60% complete. What portion of the entire anticipated loss is recognized as of the end of the second year? Which section of the authoritative literature best describes this situation and provides the appropriate guidance?A contractor failing to complete his contract worth P700,000 in a specified time is compelled to pay the penalty of ½ of 1% per day for the first 6 days of the extra time required, and for each additional day thereafter, the stipulated penalty is increased by 10% each day. If he pays a total penalty of P61,600 by how many days did he overrun his contract time?
