Answer:
Fixed price contract
Explanation:
A fixed price contract states that price for services rendered is fixed as mentioned in the contract irrespective of time taken and resources used.
Price cannot be revised in case effort and time has increased more than expected. In this case, Mister Plow cannot ask for more money as service contracts are fixed price contracts and terms of contract including price cannot be changed.
Is the multiple chose in it right or nah? <span />
The following journal entry will be passed in the books of accounts and the interest expense is calculated to an amount of $9600
<u>Explanation:</u>
Given data:
amount of note: $200000, annual principal payments to be made each year at December 31st = $40000, interest amount to be charged = 6 percent, duration of note = 5 years
the following calculation is made in order to find out the amount of interest:
Amount of note minus principal payment multiply with rate of interest
now, putting the figures in formula:
interest = 200000 minus 40000 = $160000 multiply with .06 = $9600
Thus, the interest amount = $9600
The interest expense will be debited with an amount of $9600 in the books of accounts.
Answer:
a. Total net revenue:
= Sales revenue - Sales discounts - Sales returns + Rent revenue + Dividend revenue
= 410,000 - 7,930 - 12,560 + 6,610 + 71,490
= $467,610
b. Net income:
= Total net revenue - Cost of goods sold - Interest expense - selling expenses - income tax expense - administrative expenses
= 467,610 - 179,854 - 13,420 - 99,440 - 28,935 - 75,280
= $70,681
c. Dividends declared:
= Beginning Retained earnings + Net income - Ending Retained earnings
= 114,500 + 70,681 - 134,260
= $50,921
d. Income attributable to controlling shareholders:
= Net income - non-controlling interest:
= 70,681 - 19,240
= $51,441
