Prepare the journal entry to record the collection of cash

Assignment Help Accounting Basics

Reference no: EM133927390

Problem

On January 1, Revis Consulting entered into a contract to complete a cost reduction program for Green Financial over a six-month period. Revis will receive $46,400 from Green at the end of each month. If total cost savings reach a specific target, Revis will receive an additional $23,200 from Green at the end of the contract, but if total cost savings fall short, Revis will refund $23,200 to Green. Revis estimates an 80% chance that cost savings will reach the target and calculates the contract price based on the expected value of future payments to be received. Prepare the following journal entries for Revis. Get the instant assignment help. Prepare the journal entry on January 31 to record the collection of cash and recognition of the first month's revenue Record the receipt of the bonus assuming total cost savings exceed target.

Reference no: EM133927390

Questions Cloud

How much cash was paid to employees as wages and paid : During the year, wages payable decreased from an $14,400 beginning balance. How much cash was paid to employees as wages and paid for insurance during the year?

How such organizations help certain populations : Expanding your role as a nurse and are considering working in an area where you can promote equal opportunity and improve the quality of life in your local

Read the emergency department scenario : Atropine and epinephrine were administered on several occasions without development of a pressure. Patient placed on pacemaker but no pressure

Prepare a worksheet showing the maximum amount available : Dividends Otter Tail, Inc., began operations in January. Prepare a worksheet showing the maximum amount available for cash dividends on December 31, Year 5.

Prepare the journal entry to record the collection of cash : Prepare the journal entry on January 31 to record the collection of cash and recognition of the first month's revenue Record the receipt of the bonus assuming t

Describe what degree level you would like to reach : Describe what degree level you would like to reach and Discuss where you see yourself in two years, five years, and ten years

Discuss the quality of health care given to our veterans : Discuss the quality of health care given to our veterans and Even veterans who typically receive health care through the VA may receive urgent care

What is its debt-to-assets ratio : Jasmine Inc has equity multiplier of 2.4 and its assets are finance with some combination of long-term debt and common equity. What is its debt-to-assets ratio?

How can the target population help a billing specialist : Describe the characteristics of the target population for Medicaid beneficiaries How can the target population help a billing specialist to process claims

User Account

All Pages