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Sergio [31]
2 years ago
5

Binder Corporation agreed to build a warehouse for a client at an agreed contract price of $4,000,000. Expected (and actual) cos

ts for the warehouse follow: 2017, $640,000; 2018, $1,600,000; and 2019, $800,000. The company completed the warehouse in 2019. Compute net income for each year 2017 through 2019 using the cost-to-cost method. a. 2017: $200,000 2018: $520,000 2019: $240,000 b. 2017: $640,000 2018: $1,600,000 2019: $800,000 c. 2017: $0 2018: $0 2019: $960,000 d. 2017: $320,000 2018: $320,000 2019: $320,000
Business
2 answers:
gregori [183]2 years ago
8 0

Answer:

Eet

Explanation:

Rainbow [258]2 years ago
6 0

Answer:

The correct option is a. 2017: $200,000 2018: $520,000 2019: $240,000.

Explanation:

The formula for cost to cost method is expected or actual cost incurred to date divided by the total cost of the project or contract.

Therefore, we have:

Total cost = Cost in 2017 + Cost in 2018 + Cost in 2019 = $640,000 + $1,600,000 + $800,000 = $3,040,000

Cost in 2017 contribution to total cost = Cost in 2017 / Total cost = $640,000 / $3,040,000 = 0.21

Cost in 2018 contribution to total cost = Cost in 2018 / Total cost = $1,600,000 / $3,040,000 = 0.53

Cost in 2019 contribution to total cost = Cost in 2019 / Total cost = $800,000 / $3,040,000 = 0.26

Revenue in 2017 = Cost in 2017 contribution to total cost * Contract price = 0.21 * $4,000,000 = $840,000

Revenue in 2018 = Cost in 2018 contribution to total cost * Contract price = 0.53 * $4,000,000 = $2,120,000

Revenue in 2019 = Cost in 2019 contribution to total cost * Contract price = 0.26 * $4,000,000 = $1,040,000

Therefore, net income for each year 2017 through 2019 using the cost-to-cost method can be computed as follows:

Net income for year 2017 = Revenue in 2017 - Cost in 2017 = $840,000 - $640,000 = $200,000

Net income for year 2018 = Revenue in 2018 - Cost in 2018 = $2,120,000 - $1,600,000 = $520,000

Net income for year 2019 = Revenue in 2019 - Cost in 2019 = $1,040,000 - $800,000 = $240,000

Therefore, the correct option is a. 2017: $200,000 2018: $520,000 2019: $240,000.

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assuming it is stored safely how long after It was prepared can refrigerated food be sold or served 1-7 days b-10 days c-14 days
Harman [31]

Answer:

1-7 days

Explanation:

But, ideally 4 days should be the maximum for prepared food to be refrigerated before it is sold or served.

Leaving food refrigerated for a long time makes it to lose its nutrients.  Some foods like potatoes, meat, eggs, chicken, etc. can become harmful or poisonous, especially when you reheat them before eating.  That is why it is right to adhere to proper routines for refrigerating food and also preparing and serving the food.  Some healthy food are better eaten immediately after their preparation.

7 0
2 years ago
1, A specialized computer used to collect, store, and report all the information about a sales transaction.
Llana [10]

Answer:

1. Point-of-sale (POS) terminal.

2. Terminal summary.

3. Batching out.

4. Cash receipts journal.

5. Sales discount.

6. Selling price.

7. Accounts receivable ledger.

8. Sales journal.

9. Cash sale.

10. Batch report.

11. Sales tax.

12. Markup.

13. Schedule of accounts receivable.

Explanation:

Financial accounting is an accounting technique used for analyzing, summarizing and reporting of financial transactions like sales costs, purchase costs, account payables and receivables of an organization using standard financial guidelines such as Generally Accepted Accounting Principles (GAAP) and financial accounting standards board (FASB).

Thus, it's the field of accounting that involves specific processes such as recording, summarizing, analysis and reporting of financial transactions with respect to business operations over a specific period of time. Financial experts or accountant uses either the cash basis or accrual basis of accounting. Some of the terminologies used in financial accounting with their description respectively include the following;

1. Point-of-sale (POS) terminal: a specialized computer used to collect, store, and report all the information about a sales transaction.

2. Terminal summary: the report that summarizes the cash and credit card sales of a point-of-sale terminal.

3. Batching out: the process of preparing a batch report from a point-of-sale terminal.

4. Cash receipts journal: a special journal used to record only cash receipt transactions.

5. Sales discount: a cash discount on a sale taken by the customer.

6. Selling price: the amount a business receives from the sale of an item of merchandise.

7. Accounts receivable ledger: a subsidiary ledger containing all accounts for charge customers.

8. Sales journal: a special journal used to record only sales of merchandise on account.

9. Cash sale: a sale in which the customer pays for the total amount of the sale at the time of the transaction.

10. Batch report: a report of credit card sales produced by a point-of-sale terminal.

11. Sales tax: a tax on a sale of merchandise or services.

12. Markup: the amount a business adds to the cost of merchandise to establish the selling price.

13. Schedule of accounts receivable: a listing of customer accounts, account balances, and total amount due from all customers.

3 0
2 years ago
How education and hospitals are said to be service enterprises? explain.​
Nataly [62]

Answer:

Education helps patients make informed decisions.

Explanation:

Ensuring informed decision-making relies heavily on patient education. When patients are more knowledgeable about their care and potential treatment options, they are better able to identify how they do or do not want to receive their healthcare.

5 0
1 year ago
On March 1, 2021, Stratford Lighting issued 10% bonds, dated March 1, with a face amount of $690,000. The bonds sold for $678,00
Alika [10]

Answer:

1. March 1, 2021

Dr Cash $678,000

Dr Discount on bonds payable $12,000

Cr Bonds payable $690,000

2. August 31, 2021

Dr Bond interest expense $34,800

Cr Discount on bonds payable $ 300

Cr Cash $34,500

3. December 31, 2021

Dr Bond interest expense $23,200

Cr Discount on bonds payable $200

Cr Bond interest payable $23,000

4. February 28, 2022

Dr Bond interest payable $23,000

Dr Bond interest expense $11,600

Cr Discount on bonds payable $100

Cr Cash $34,500

Explanation:

1. Preparation of the journal entry to record the issuance of the bonds by Stratford Lighting on March 1, 2021

Dr Cash $678,000

Dr Discount on bonds payable $12,000

($690,000-$678,000)

Cr Bonds payable $690,000

(Being to record issuance of the bonds is recorded)

2. Preparation of the journal entry to record interest on August 31, 2021

Dr Bond interest expense $34,800

Cr Discount on bonds payable $ 300 ($12,000/20*6/12 )

Cr Cash $34,500

($690,000 × 10% × 6/12)

(Being to record interest )

3. Preparation of the journal entry to accrue interest on December 31, 2021.

Dr Bond interest expense $23,200

($23,000+$200)

Cr Discount on bonds payable $200

($12,000/20 × 4 /12)

Cr Bond interest payable $23,000

($690,000* 10%× 4/12)

(Being to record accrue interest is recorded)

4. Preparation of the journal entry to record interest on February 28, 2022

Dr Bond interest payable $23,000

($690,000* 10%× 4/12)

Dr Bond interest expense $11,600

[($34,500+$100)-$23,000]

Cr Discount on bonds payable $100

($12,000/20*2/12)

Cr Cash $34,500

($690,000 × 10% × 6/12)

(Being to record interest is recorded)

8 0
2 years ago
A magazine subscription costs $45 per year at the beginning of each year, or $115 now for a three-year subscription. If the subs
ahrayia [7]

Answer:

The answer is 18%

Explanation:

Return on investment is defines as the revenue or profit that is earned by a business as a result of certain amount invested in a business or activity.

It is calculated by dividing profit realised by the amount invested.

The magazine subscription costs $45 a year, so for 3 years a subscriber pays 45*3= $135

However the amount he actually paid is $115 for the 3 years.

Gain in this transaction= 135- 115= $20

Return on investment= gain/amount invested

Return on investment= 20/115

Return on investment= 0.17391

Return on investment= 17.391%

This is closes to 18%

4 0
2 years ago
Read 2 more answers
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