Develop a reliable estimate of completion
Course:- Accounting Basics
Reference No.:- EM13767174

Assignment Help
Assignment Help >> Accounting Basics

Nair Corp. enters into a contract with a customer to build an apartment building for $1,000,000. The customer hopes to rent apartments at the beginning of the school year and provides a performance bonus of $150,000 to be paid if the building is ready for rental beginning August 1, 2015. The bonus is reduced by $50,000 each week that completion is delayed, determine the transaction price for the contract, assuming (a) Nair is only able to estimate whether the building can be completed by August 1, 2015, or not (Nair estimates that there is a 70% chance that the building will be completed by August 1, 2015), and (b) Nair has limited information with which to develop a reliable estimate of completion by the August 1, 2015, deadline

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Accounting Basics) Materials
Which of the following is an appropriate representation of the accounting equation? Which principle determines the amount initially entered into the records for purchases?
The auditors' work on cash may include preparing a description of controls and performing tests of controls. Which of these two steps should be performed first? What is the
Give the entry for the issuance assuming the par value of the common was $5 and the market value $30, and the par value of the preferred was $40 and the market value $50.
The Baldwin Wholesale Company began 2011 with inventory of $400,000 and ended the year with inventory of $500,000. The company's gross profit ratio is 25%, inventory turnove
Explain how purchase of the apple press might affect the company's revenue goals. Based on this information, explain whether Anthony's Orchard should invest in the apple pre
Using the retail method (this method estimates lower-of-average-cost-and-market), compute the ending inventory at cost as of January 31, 2005. Make sure your answer is in good
You have been hired as a consultant for XYZ Research Co. XYZ Research Co. incorporated in 2010. XYZ ‘s business centers on developing new technology for interplanetary explo
The balance of an unearned revenue account:a.Appears in the balance sheet as a component of owners' equity.b.Appears in the income statement along with other revenue accounts.