Answer: Barbara needs to look for running balance or the amount the has been recorded.
Answer:A) its stockholders' equity decreases by $10,000.
Explanation:
Account Debit Credit
Treasury stock $10,000
Cash $10,000
Calculation:
Stock = Shares x Price per share =1000 x $10 = $10,000
Therefore, the stockholders equity will decrease by $10000.
Hence the correct option is A.
Answer:
D. Recognised $13.5 million gross profit on the project in 2021.
Explanation:
Firstly, we will begin by getting how much of the project has been completed
$35 million of the cost has been incurred and a further $83 million left
This means that the total cost would be;
= $35 + $83
= $118
If $35 million of the cost has been incurred, we can find out how far the project is using its proportionality .
= 35/118
= 0.297
= 29.7% of the project has been completed.
The above implies that we can apportion 29.7% of the contract price to 2021.
= 29.7% × $163 million
= $48.411 can be recognised as revenue
The cost till date is $35 and there were no costs in the previous year as this is the first year of the project.
Hence, the gross profit would be;
= $48.411 million - $35 million
= $13.5 million
Answer:
c) gain-sharing
Explanation:
Based on the scenario being described within the question it can be said that the team members were also compensated through a gain-sharing system. This term, also known as profit sharing, refers to an incentive plan that usually provides a direct or indirect payment to employees based on the company's profitability, usually in the form of shares of the company.