On July 1, Wiggins Associates enters into a contract to provide consulting services to Pennsylvania University (PU). The contract is anticipated to last four months and is intended to achieve significant cost savings at the university. The contract stipulates that PU will pay Wiggins $41,000 at the end of each month, and, if total cost savings reach a specific target, PU will pay an additional $36,000 to Wiggins at the end of the contract. Wiggins estimates a 70% chance that cost savings will reach the target. Assume that Wiggins estimates uncertain consideration as the most likely amount. Required: Do the following for Wiggins: a. Prepare the journal entry on July 31 to record the first month of revenue under the contract. b. Assuming total cost savings exceed the target, prepare the journal entry, if any, on October 31 to record receipt of the $36,000 bonus (ignore the normal October payment of $41,000). c. Assuming total cost savings do not reach the target, prepare the journal entry, if any, on October 31 to record failure to receive the $36,000 bonus (ignore the normal October payment of $41,000). (For all requirements, If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Answers: 2
Business, 22.06.2019 17:50, hinokayleen5053
Which of the following is an element of inventory holding costs? a. material handling costs b. investment costs c. housing costs d. pilferage, scrap, and obsolescence e. all of the above are elements of inventory holding costs.
Answers: 1
Business, 23.06.2019 22:00, kingrebl4267
enrique borrowed $3600 to put a down payment on a motorcycle. the loan had a simple interest rate of 8% for 2 years. use the formula i = prt to find the amount of interest he will pay on the loan. i = interest; p = principal; r = rate (expressed as a decimal 0.08); t = time in years.
Answers: 1
Business, 24.06.2019 04:00, dmorinville8
Afood handler is prepping a seafood coconut curry dish on april 4 using shrimp and scallops. the shrimp has a use-by date of april 8 and the scallops' use-by date is april 10. what is the use-by date for the seafood coconut curry?
Answers: 1
Business, 24.06.2019 14:00, prithy
Grain mill company brings a suit against milled grain company under the anticybersquatting consumer protection act, alleging that milled grain is profiting from a domain name that is confusingly similar to grain mill's trademark. if grain mill is successful, a recovery may include
Answers: 2
On July 1, Wiggins Associates enters into a contract to provide consulting services to Pennsylvania...
Social Studies, 16.12.2019 22:31
Health, 16.12.2019 22:31