Determine the transaction price for this contract

Assignment Help Financial Accounting
Reference no: EM133101532

Question - Sheridan Corp. enters into a contract with a customer to build an apartment building for $1,039,000. The customer hopes to rent apartments at the beginning of the school year and provides a performance bonus of $148,200 to be paid if the building is ready for rental beginning August 1, 2021. The bonus is reduced by $49,400 each week that completion is delayed. Headland commonly includes these completion bonuses in its contracts and, based on prior experience, estimates the following completion outcomes:

Completed by

Probability

August 1, 2021

70%

August 8, 2021

20

August 15, 2021

5

After August 15, 2021

5

Required - Determine the transaction price for this contract.

Reference no: EM133101532

Questions Cloud

Calculate the average unit cost : Swifty Company made three purchases of merchandise in the following sequence: (1) 340 units at $8, Calculate the average unit cost
Emphasis on social skills : - Some people think that planning for future is a waste of time. They believe it is more important to focus on the present. Do you agree or disagree?
Recommendations for consideration in a strategic plan : How doing case analysis can help you develop skills needed to prepare recommendations for consideration in a Strategic Plan.
Global business problems : A potential business partner from Shanghai, Wang Jian-Jun, will meet with you next Monday to discuss an opportunity for trading clothes for machinery.
Determine the transaction price for this contract : Sheridan Corp. enters into a contract with a customer to build an apartment building for $1,039,000. Determine the transaction price for this contract
What are the five constant relationships : What are the five constant relationships (not Chinese terms)?
Major factors influence that shapes your values : List and explain the 5 Major Factors influence that shapes your values. In a essay format
Thoughts about corporate governance : In 175 words explain your thoughts about corporate governance. and provide an example
Does fnma require the deposit to be sourced : Borrower has submitted bank statements to verify assets for her down payment with a large deposit of $3,000 which she explains was not a loan, but cash money fr

Reviews

Write a Review

Financial Accounting Questions & Answers

  What should be the price of the stock today

Last year, UCC Corporation paid a P1.50 dividend. If the required return on the stock investment is 15%, what should be the price of the stock today?

  Require company to record prior period adjustment

Which of the following is not an error that would require a company to record a prior period adjustment? Assume all are material.

  Reducing inventories until we are just-in-time

This company will become a just-in-time manufacturing company. Presently, we have too much inventory. To become just-in-time, we need to eliminate the excess inventory. Therefore, I want all employees to begin reducing inventories until we are just-i..

  Special radiology scanner from bella

Twilight Hospital purchased a $98,800 special radiology scanner from Bella Inc. The scanner had a useful life of 4 years and was estimated to have no disposal value at the end of its useful life

  How to make all of the necessary journal entries

How to Make all of the necessary journal entries for the independent transactions? The company discounted its notes receivables for $5,000

  How much can withdraw from the account

How much can he withdraw from his Account 2, given that paying medical expenses is his first priority and what will be the balance of his EPF Account 2 be then?

  Compute the diluted eps for lyft

Compute the 2019 diluted EPS. During 2019, Lyft had earnings available to common shareholders of $2,500,000 and had 1,000,000 shares

  Why cash flow management is important to a business

Why cash flow management is important to a business and its financial health. Use a recent financial news story as an example to support your claims.

  Prepare journal entries for received payment

Prepare Journal Entries For Received payment of $340,000 on accounts receivable. After receiving the payment, estimated that 4% of the remaining accounts

  Which describes the effect of fraud on indirect cash flow

Which describes the effect of this fraud on the indirect cash flow statement? To inflate income in Y2, a company treats an operating payment

  Calculate the number of units that must be sold each month

Ozark Metal Co. makes a single product that sells for $42 per unit. Calculate the number of units that must be sold each month

  Evaluate each company liquidity relative to competitor

Evaluate each company's liquidity relative to its competitor using at least three ratios. Evaluate each company's solvency relative to its competitor

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd