Answer: Cost plus contact
Explanation:
A cost-plus contract is a form of contract whereby the contractor is paid for all of its allowed expenses including additional payments in order to allow for a profit.
A cost plus contract is usually used when the quality, delivery time and performance is of more importance than the cost. In cost plus contract, the final cost may be smaller than the fixed cost because the contractors don't usually inflate price and also as a result of lesser price competition.
A cost price contract also gives more room for control and oversight over a contractors work and is also flexible which gives room for specification changes.
Answer:
a. Journal entry
b. $18,150
c. $586,850
Explanation:
a. The adjusting journal entry is as follows
Bad debt expense A/c Dr
To Allowance for doubtful debts
(Being bad debt expense is recorded)\
The computation of the bad debt expense is shown below:
= Account receivable × estimated percentage given + debit balance of allowance for uncollectible accounts
= $605,000 × 3% + $4,700
= $18,150 + $4,700
= $22,850
b. The adjusted balance in Allowance for Doubtful Accounts is $18,150
c. The cash realizable value is
= $605,0000 - $18,150
= $586,850
Answer:
a) Record transfer of cost of completed job to Finished Goods.
b) Record transfer of cost of completed job to Finished Goods.
a and b
Debit Credit
Finished goods inventory $10,500
Work-in-process inventory $10,500
c) Record the cost of goods sold.
Debit Credit
Cost of goods sold $10,500
Finished goods inventory $10,500
d) Record sale price of delivered job paid in cash.
Debit Credit
Cash $14,900
Sales $14,900
Explanation:
a and b
Cost in the Work in process is tranferred to the finished goods goods account by debiting the Finished goods account due to its debit nature and crediting the work in process account.
c
On the sales of car the cost is transferred to the cost of goods sold account to reduce the inventory of finished goods value.
d
$14,900 Cash is received against the sale of the car.
Answer:
The question is not complete as the before information is missing:
Journalize the transactions and the closing entry for net income.
The journal showing the necessary entries in respect of share transactions that took place in the year as well as closing entry for net income are found in the attached spreadsheet.
Explanation:
Note that in determining the par value of the 5700 shares of treasury stock issued on the 14th April, reference is made to total par value of $52500 as well as total number of shares of 10500
Answer:
Omicron Technologies
The number of shares that Omicron will repurchase is closest to:_____
1,000,000 shares.
Explanation:
Excess cash = $50 million
Free cash flows in subsequent years = $40 million per year
Dividends payment in most recent year = $40 million
Unlevered cost of capital = 8%
Outstanding common stock = 10 million shares
Dividend per share = $4 ($40,000,000/10,000,000)
Share price = dividend per share/unlevered cost of capital
= $50 ($4/0.08)
Number of shares to repurchase = $50,000,000/$50
= 1,000,000 shares