User Account

All Pages

What adjustment to revenue should Sanjeev recognize

Assignment Help Accounting Basics
Reference no: EM132941311

Question - Sanjeev enters into a contract offering variable consideration. The contract pays him $2,400/month for six months of continuous consulting services. In addition, there is a 60% chance the contract will pay an additional $3,400 and a 40% chance the contract will pay an additional $4,400, depending on the outcome of the consulting contract. Sanjeev concludes that this contract qualifies for revenue recognition over time.

Assume that Sanjeev estimates variable consideration as the most likely amount. After Sanjeev has recognized revenue for two months of the contract, he changes his assessment of the chance the contract will pay him $4,400 to 70%. What adjustment to revenue should Sanjeev recognize to account for that change in estimate?

Reference no: EM132941311

Questions Cloud

Design an opening presentation for the training session : Read the case study, "Southwood School: A Case Study in Training and Development," from the Student Workbook . Review the appraisee's training session and the m
Elements of the marketing mix : 1. Examine the factors, which determine how businesses price their products.
What is the premium balance for the shares : A company's balance sheet shows a balance of SGD 15 million in common stock, What is the premium balance for the shares
What is the revenue per labor cost : A company brings in $10 million in annual revenue and employs an average of 100 full-time employees with a total labor cost of $5 million.
What adjustment to revenue should Sanjeev recognize : The contract pays him $2,400/month for six months of continuous consulting services. What adjustment to revenue should Sanjeev recognize
What does gross profit margin : What does gross profit margin, operating income margin, and net income margin represent? When is net income margin higher than operating income margin
How is covid-19 is redefining work : How is Covid-19 is redefining work, the workforce and the workplace in the Canadian airline industry. From a Human Resources prespective.
What is the after-tax salvage value : If the equipment can be sold for $80,000 at then end of Year 5, what is the after-tax salvage value? Also, please upload your excel files showing your work
Describe the employer contributions : You have just been advised that your organization is opening an office in Québec. Describe the employer contributions that are specific to the province of Québe

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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