Answer:
(C) $4,650,000 $ 5,250,000
Explanation:
total contract price is $ 18,600,000
season construction using percentage of completion method.
Amount of revenue & construction expense for the year ended december 31, 2020 will be
25% of $ 18,600,000 revenue = $ 4,650,000
25% of $ 18,750,000 total cost = $5,250,000
Answer: $12,000
Explanation:
The question makes no sense in one area. The loss probability for $0 cannot be 90% because the other two are collectively 20%. I shall therefore assume that the loss probability for $0 is 80% so that they add up to 100%.
Expected claim cost = ∑[loss probability * (Loss - Deductible)]
= 0.9 * 0 + [0.15 * (10,000 - 10,000)] + [0.05 * (250,000 - 10,000)]
= $12,000
Answer:
Dr Notes Payable 4500
Dr Interest expense 75
Cr Cash 4575
Explanation:
Based on the information given if On April 12, the Hong Company agrees to accept a 60-day which include the amount of $4,500 note from Indigo Company which means that in order to extend the due date on an overdue account the journal entry that Indigo Company would make, when it records payment of the note on the maturity date is :
Dr Notes Payable 4500
Dr Interest expense 75
(4500/60 days)
Cr Cash 4575
(4500+75)
Answer:
The quantity of newspapers sold will decline if
d. newsprint becomes more expensive.
Explanation:
The reason for this is the demand curve. The demand curve is the relationship between the price of newspaper and the quantity demanded. As price rises, people would have less capacity and willingness to buy newspaper therefore reducing the quantity sold.
Why not other options:
a. magazine prices rise- magazine is a substitute of newspaper and if price of magazine rises then people will start buying more newspaper and therefore increasing the sales of newspaper instead of declining.
b. prices are reduced- If the prices are reduced, more and more people will have capacity to buy newspaper thus increasing sales instead of reduction.
c. the printers' union makes wage concessions- If cost of manufacturing newspaper is decreased(union takes low salaries now), selling price will also be lowered. This will result in increase of sales of newspaper rather than reduction
