me 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
Q: A UV machine cost 550,000 pesos and has a salvage value of 10% of its cost at the end of its…
A: Depreciation is considered as an expense charge on the tangible value of the Asset. It can be…
Q: Caleb's duplex sold at a foreclosure auction for $140,000. At the time of foreclosure, he had not…
A: A loan is an amount given by the lender to the borrower at an agreed interest rate for a defined…
Q: In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa…
A: Introduction:- Construction Contracts gives requirements on the allocation of contract revenue and…
Q: Standard Quantity or Hours Standard Price or Rate Direct materials 7.4 ounces Direct labor 0.3 hours…
A: The variance is the difference between the actual data and standard output of the production.
Q: pay within 30 400 cash to settle the account payable created on Apri 300 cash for the premium on a…
A: Trial balance refers to the form of the financial document under which the ledger balances are…
Q: The production manager of Rordan Corporation has submitted the following quarterly production…
A: Direct labor is the wages paid to the laborers the cost of which can be identified with the units…
Q: at
A: Harold's Harold's Death Small Flat is valued = £170,000 other assets = £680,000
Q: Alliance Corporation purchased inventory with an invoice price of $22,000 and credit terms of 1/10,…
A: Formula: Discount amount = Invoice amount x Discount rate.
Q: 28. Sweetman's Recording Studio payroll records show the following information: Cumulative Earnings…
A:
Q: A company will issue stock and bonds to raise $65,000,000 to finance a project. The company will…
A: The revenue and expenses incurred during the period are recorded in the income statement and net…
Q: 39 costing. The company's inventory balances were as follows at the beginning and end of the year:…
A: "Since you have posted a question with multiple sub parts, we will solve first three sub parts for…
Q: Requirement 1. Journalize the adjusting entries. (Record debits first, then credits. Exclude…
A: Adjusting Entry – Adjusting Entries are the entries that make the accrual principle work for the…
Q: Larry purchased an annuity from an insurance company that promises to pay him $6,500 per month for…
A: Annuity- An annuity is a contract between an individual and an insurance company in which the…
Q: 3. Prepare an unadjusted trial balance as of April 30. 4-a. Refer to the revenues and expenses shown…
A: Introduction: The net profit margin, also said to be the net income margin or net margin, is the…
Q: From the following, which are subdivisions of owner's equity? Subdivision of Owner's Equity? Account…
A: The balance sheet represents the financial position of the business of with assets, liabilities and…
Q: reference to the importance of the three certainties to be satisfied before a Mauritian Court will…
A: Private Express Trust refers to the form of the declaration made by the person who wishes to…
Q: Metal Company budgeted $556,000 manufacturing direct wages, 2,500 direct labor hours, and had the…
A: Formula used: Activity rate per hour = Total Machine set up / Number of setup
Q: 2,833 units Number of units Sale price per unit $200 Variable costs per unit 80 Calculate:…
A: Introduction: Contribution margin per unit: Deduction of variable cost per unit from Sales price per…
Q: The management of Mecca Copy, a photocopying center located on University Avenue, has compiled the…
A: The balance sheet is a summary of permanent accounts prepared at the end of the accounting period.…
Q: PROBLEMS: 1. Make a formula at cell C17 to C22 given the condition: It will display GOOD if INCOME…
A: Microsoft Excel- Microsoft Excel is a MS office program, used to calculate numerical values in a…
Q: Spicewood Stables, Incorporated, was established in Dripping Springs, Texas, on April 1. The company…
A: Journal Entries - Journal Entries are the recording of transactions of the organization. It is…
Q: On January 1, 2017, Blizzards-R-Us purchased a snow-blowing machine for $125,000. The machine was…
A: To a change in the estimate of residual value and remaining useful life of an asset, the prospective…
Q: DECEMBER 3 82,000 171,000
A: Errors are the mistakes which occur in the financial statements which render the statements not…
Q: The partnership agreement of Thomas, Gise, and Bosco provides for the following income ratio: (a)…
A: Lets understand the basics. Partnership is an agreement between two or more person who works…
Q: Aces Inc makes identical accessories for bathrooms and uses process costing. The flow of production…
A: Under the FIFO method, beginning units are completed first.
Q: Prepare ten-column joumal entries (with description) that were required to adjust the accounts at…
A: Adjustment Entries in Books of Universe Company Trans. No. Particulars Debit Credit…
Q: 9th deposit is m
A: Given Information: Amount Deposited each year is P10,000 Time period is 9 years Interest rate is 14…
Q: Hillside issues $4,000,000 of 6%, 15-year bonds dated January 1, 2021, that pay interest…
A: Solution 1: Journal Entries - Hillside Date Particulars Debit Credit 1-Jan-21 Cash…
Q: Simms Corp. is considering a project that has the following cash flow data. What is the project's…
A: Internal Rate of Return is that rate at which Present Value of Cash Inflow is equal to Present value…
Q: Watts and Lyon are forming a partnership. Watts invests $40,500 and Lyon invests $49,500. The…
A: The partners shares the profits and losses in different manners such as equally, investment ratio,…
Q: Markham Company has completed its sales budget for the first quarter of Year 2. Projected credit…
A: A cash budget is prepared to estimate the total cash received and total cash disbursement. It is…
Q: The following costs relate to Antonio Industries for the last quarter: Conversion cost Direct…
A: Answer: Option -C = P650,000 Cost sheet A. Direct Material P215,000 B. Direct Labour P245,000…
Q: Prepare journal entries to record the following transactions for the month of November. If an amount…
A: Introduction: Journals: Each and every business transactions are to be recorded in journals. All the…
Q: Micro, Inc., started the year with net fixed assets of $76,175. At the end of the year, there was…
A: Net capital spending refers to those amounts of the company which is used to purchase the new…
Q: Pharoah Company had the following stockholders' equity as of January 1, 2020. Common stock, $5 par…
A: Treasure stock are the portion of a company's shares that are held by its treasury and not available…
Q: In July 2020, ABC Co. computed its equivalent unit costs under FIFO process costing as follows:…
A: The cost per unit is calculated as total cost divided by number of equivalent units.
Q: Finch and Gerhardt are partners. Finch's capital balance is P100,000 and Gerhardt's is P140,000 They…
A: The bonus that is granted to the existing partners on the admission of a new partner is the amount…
Q: Do not use R, brackets, spaces, signs or decimals (unless specifically instructed) The deemed cost…
A: Here asked for Multi sub part question we will solve for first thee sub part question as per Q/A…
Q: In order to decide whether the firm will be better off joining two distinct activities under unified…
A: Here discuss about the details of importance of the incentives which are provided to the employees…
Q: Required: 1. Prepare the January 1 journal entry to record the bonds' issuance. 2(a) For each…
A: Journal entries refers to the official book of a firm/company which is used to record the day to day…
Q: Clyde is a cash-method taxpayer who reports on a calendar-year basis. This year Paylate Corporation…
A: Under Cash method income taxable only on cash basis. Income taxable when actually received.
Q: (Ignore income taxes in this problem.) Sam Corporation is investigating automating a process by…
A: The simple rate of return on investment is the amount of return (profit) expected from an…
Q: Bonneau Corporation declares a cash dividend of $100,000 on July 1 for any shareholder on record on…
A: Lets understand the basics. Journal entry is required to record financial event and transaction that…
Q: Denzel Brooks opened a Web consulting business called Venture Consultants and completed the…
A: Journal Entries - Journal Entries are the recording of transactions of the organization. It is…
Q: What is the value of revenue to breakeven? Units Revenue - Variable Cost - Contribution Margin -…
A: Cost volume profit analysis is the technique used by the management for decision-making. The methods…
Q: Clyde is a cash-method taxpayer who reports on a calendar-year basis. This year Paylate Corporation…
A: Under Cash method income is not consider until payment is actually received. Cash method is simple…
Q: Silver Company makes a product that is very popular as a Mother’s Day gift. Thus, peak sales occur…
A: Cash Collection from Accounts Receivables: The process of cash collecting is within the purview of…
Q: Each partner's initial noncash investment in the partnership should be recorded at the a. carrying…
A: Answer: Option b Fair value of assets at the date of their transfer in to the business.
Q: A $200 e-reader is sold in bulk to your store for $186. Calculate the trade discount rate. A. 8% C.…
A: A trade discount is the difference between the listed price and takeout price. The discount rate can…
Q: ZELDEN GENERAL SERVICES has been operating for 5 years. It is engaged in various Repairs of…
A: Allowance for doubtful accounts is the provision created in the books of accounts for the estimated…
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?
Step by step
Solved in 2 steps
- You were delayed for 13 days from date of delivery time. A standard liquidated damages (LD) is imposed on you. Compute how much are you going to receive in your final billing if your contract amount is Php 3.5 million.At the end of one day a clearing house member is long 50 contracts, and the settlement price is $10,000 per contract. The original margin is $500 per contract. On the following day the member becomes responsible for clearing an additional 10 long contracts, entered into at a price of $9,800 per contract. The settlement price at the end of this day is still $9,800. How much does the member have to add to its margin account with the exchange clearing house? $0 $5,000 $10,000 $15,000One of Rose’s suppliers, Powder Bhd, had adverse publicity due to the issue of cleanliness of its factory. On 1 September 2019, Rose Bhd decided to terminate the contract with Powder Bhd. The contract will expire in 8 months time. According to the contract, the cost to fulfill the contract is RM160,000 per month. It is also stipulated in the contract that Powder Bhd can accept a compensation of RM1,400,000 if the contract is terminated more than 6 months before it expires. Required:For each of the events above, explain whether provisions should be recognised in accordance with MFRS 137 Provisions, Contingent Liabilities and Contingent Assets.
- On July 1, 2017, Dinar obtained a contract to construct a building. The building was estimated to be built at a total cost of P15,000,000 and is scheduled for completion on October 2019. The contract contains a penalty clause to the effect that the other party was to deduct P35,000 from the contract price for each week of delay. On the other hand, if the contractor was able to finish the building earlier than agreed, it will be rewarded an amount equal to P50,000 for every month of early completion. Furthermore, cost escalation clause was included in the contract. In 2018, the estimated costs of particular construction material amounting to P520,000 were bought for P780,000. The increase in the contract price related to this cost escalation was approved by the client. Completion was delayed for 4 weeks. The records show: 2017 2018 2019 Costs incurred P1,750,000 6,440,000 1,085,000 Estimated cost to complete 7,000,000 1,810,000 -- Progress billings…The 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.P65,000Careful Company sells goods that cost P600,000 to a customer for P800,000 on December 20, 2021. The sales price includes an installation fee, which is valued at P80,000. The fair value of the goods is P740,000. The installation is considered a separate performance obligation and is expected to take 3 months to complete. *How many performance obligations are there in the contract? *How much is the revenue to be recognized in 2021 and 2022?
- Beautiful Company sold a set of washing machine and a dryer for a total contract price of P100,000 on December 15, 2021. The stand-alone selling prices of the washing machine and the dryer if sold separately are: 150,000 and 70,000, respectively. The washing machine was delivered on December 20, 2021 but the dryer was delivered only on January 5, 2022. *How many performance obligations are there in the contract? *How much is the revenue to be recognized in 2021? *How much is the revenue to be recognized in 2022?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?In a construction contract assigned to a contractor, according to the table shown below. The contractor's estimates for the price submitted by him included a profit guarantee of 20% of the total cost of the work. The terms of the contract between the two parties included that the client would credit the contractor with an advance payment of 10% of the contracted amount deducted in the form of two sequential monthly re-payments. The first re-payment should be deducted from the amount of the fourth monthly payment that the contractor is actually entitled to receive where the first re-payments amount is equivalent to 75% and the second 25% of the advance payment amount, respectively. The work has to be done in accordance with the general contracting conditions in Iraq. Note that the procedures of organizing, auditing and paying of the monthly payments takes one month between the due date and the date of actual receipt of the amount by the contractor.
- 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…Sweet Corp. enters into a contract with a customer to build an apartment building for $1,037,600. The customer hopes to rent apartments at the beginning of the school year and provides a performance bonus of $155,400 to be paid if the building is ready for rental beginning August 1, 2021. The bonus is reduced by $51,800 each week that completion is delayed. Sweet commonly includes these completion bonuses in its contracts and, based on prior experience, estimates the following completion outcomes: Completed by Probability August 1, 2021 70 % August 8, 2021 20 August 15, 2021 4 After August 15, 2021 6 Determine the transaction price for this contract.Teal Corp. enters into a contract with a customer to build an apartment building for $1,031,300. The customer hopes to rent apartments at the beginning of the school year and provides a performance bonus of $144,300 to be paid if the building is ready for rental beginning August 1, 2021. The bonus is reduced by $48,100 each week that completion is delayed. Teal commonly includes these completion bonuses in its contracts and, based on prior experience, estimates the following completion outcomes: Completed by Probability August 1, 2021 70 % August 8, 2021 20 August 15, 2021 4 After August 15, 2021 6 (a) Determine the transaction price for the contract, assuming Teal is only able to estimate whether the building can be completed by August 1, 2021, or not (Teal estimates that there is a 70% chance that the building will be completed by August 1, 2021). (If answer is 0, please enter 0. Do not leave any fields blank.) Transaction Price $enter the…