Why onerous contracts are considered as a provision, even though they do not always come with a high probability of being an obligation?
Q: if the shareholders position is not protected by a contract unlike the provider of debt how is it in…
A: A shareholder seems to be a person or organization who holds stock in a corporation. Shareholders…
Q: Determine when a liability can be classified as a noncurrent obligation.
A: Liabilities are obligations arising from past transactions and payable in assets or services in…
Q: What is the difference between contingent claims (options) and forward
A:
Q: Determine whether the statement is legally correct (true) or not (false). Even where the contract…
A: The business can be run by the individual in the form of sole proprietorship, or it can be run as a…
Q: What is the effect of the fulfillment of the condition in a conditional obligation? resolutory…
A: A conditional obligation would seem to be one that is contingent on the occurrence of an unknown…
Q: Which of the options is an example of liability?
A: Liability is something a company or person owes, usually a sum of money. It denotes an obligation…
Q: what conditions are not necessary to exclude a short term obligation from current liabilities?
A: Current liabilities: It refers to short term financial obligations that are to be discharged within…
Q: What is the difference in Forward Contracts and Future Contracts
A:
Q: Why would the existence of conditions subsequent and precedent affect the discharge of a contract?
A: A contract is an agreement between more than one person to perform the duties mentioned in the…
Q: What is/are the rule/rules (and the exceptions, if there be any) in case an object is lost or…
A: Fortuitous events refers to the happening of event through accident or chance. In short, it is a…
Q: A. It is probable that an outflow of economic benefits will be required to settle an obligation B.…
A: Option D
Q: Which of the following is not a condition necessary to exclude a short-term obligation from current…
A: SHORT-TEAM OBLIGATIONS: Debt, also called current liabilities, is a firm's financial obligations…
Q: Forward contract is both a blessing and a curse because sometimes you feel that you should not have…
A: The contract between two parties (buyer or seller) in order to buy or sell the specific assets…
Q: Who may institute action for annulment of voidable contracts? Briefly discuss.
A: Contract Act- The Indian Contract Act of 1872 lays out the groundwork for forming a legally binding…
Q: Briefly, explain the difference between the torts of Wrongful Interference with a Contractual…
A: Answer:- Tort meaning:- Tort is a kind of civil wrong that causes the claimant to incur loss or…
Q: 1. If the forward rate is not at parity during the outset of the contract, which theory of term…
A: Step 1 Interest rate parity (IRP) is a hypothesis that states that the difference in interest rates…
Q: If a problem is silent as to whether a warranty payable is short-term or long-term, will it be…
A: Warranty payable represents a liability account that reports the estimated amount that a company…
Q: What is the fair value option? Briefly describe the controversyof applying the fair value option to…
A: Meaning of fair value option:
Q: the stakeholders position is not protected by a contract -unlike the provider of debt- how is it in…
A: Shareholders are the individuals who get ownership of the organization when they invest in their…
Q: in a conditional
A: A conditional obligation would seem to be one that is contingent on the occurrence of an unknown…
Q: Contingent liabilities are obligations that may or may not materialize
A: Contingent liabilities are obligations that may or may not materialize will be explained:
Q: If the shareholder’s position is not protected by a contract – unlike the provider of debt- how is…
A: The shareholders have ownership of the company. The providers of debt are the creditors of the…
Q: Discuss the effects of ratification in voidable contracts
A: A contract that contains one or both of these flaws can nonetheless be regarded legally binding if…
Q: What tools are available for solving adverse selection and moral hazard problems in debt contracts…
A: There may arise various problems like adverse selection and moral hazards problem in equity and debt…
Q: When is a forward contract preferred over an option contract ?
A: Forward contract and Option contract Option contract gives the right to the holder to buy or sell…
Q: As a rule, when an obligation is subject to a condition, it is constituted the moment the condition…
A: The given statement is True... As a rule, when an obligation is subject to a condition, it is…
Q: When from among the choices available only one is possible, the obligation in effect ceases to be…
A: Answer:- True Explanation:- When from the choices available only one of the choice is possible, the…
Q: TRUE OR FALSE A liability can exist even if the party to whom the obligation is owed is not…
A: Liability:- A Liability is the amount owed from outsiders such as suppliers, creditors, investors,…
Q: What is/are the rule/rules (and the exceptions, if there be any) in case an object is lost or…
A: Fortuitous events are the events that are considered as the "act of God" because naturally, the act…
Q: I. A provision is a present obligation which may either be legal or constructive. II. Even if a…
A: As per IAS 37 Provisions, Contingent Liabilities and Contingent Assets, A provision is a present…
Q: What is a guarantee? How can a guarantee be revoked or discharged
A: The guarantee represents the contract that the guarantor will perform the promise and discharge the…
Q: Suppose the obligation of the debtor is to do something and he fails to do it or performs it in…
A: when there is business between two or more person , there is agreements . when one person does…
Q: As a rule, when the substitute obligation is lost prior to substitution, the obligation becomes a…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: What exceptions are there to contracts that normally require a writing to be enforceable?
A: It is being written under the law that all agreement which are in writing could only be enforceable…
Q: Liabilities are present obligation which represent O legal only O expected value O neither legal or…
A: Accounting's goals include keeping a systematic record of all financial transactions in a book of…
Q: Which of the following is not a secondary mode of extinguishing obligations? * Changing the object…
A: Primary obligations is prescription Which means time limit to sue in the court of law. prescription…
Q: May an obligor be liable under an obligation subject to a suspensive condition although the…
A: When an obligation is subject to a suspensive condition, the creation of the obligation will depend…
Q: What is the meaning of “counter-offer” in relation to the law of contract?
A: Counter Offer is a type of offer given in response of original offer.
Q: A commitment is a legal obligation that does not meet the technical requirements for recognition as…
A: Liability means the amount to be paid to an outsider by the business which is shown on liability…
Q: Discuss the contract according to its enforceability?
A: In basic terms, a contract implies when two gatherings put into composing an understanding that…
Q: Discuss how Unilateral contract suits insurance than commutative contracts
A: An insurance contract is a kind of legal document that lays down the agreement terms between the…
Q: The following obligations are immediately demandable, EXCEPT: a pure obligation obligation with…
A: There are obligation to be paid immediately but there are some conditional liabilities they occur…
Q: What is a contingent liability? Provide some examples of contingencies.
A: Explain the meaning of contingent liability and provide some examples: A contingent liability, as…
Q: If an investor has unique needs and does not care about liquidity, which contract is right for them:…
A: future contract is the contract which gives the obligation to the holder to buy or sell the…
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- Ivanhoe Construction Company uses the percentage-of-completion method of accounting. In 2025, Ivanhoe began work under contract #E2-D2, which provided for a contract price of $2,237,000. Other details follow: Costs incurred during the year Estimated costs to complete, as of December 31 Billings during the year Collections during the year (a) Your answer is correct. Revenue recognized in 2025 Revenue recognized in 2026 LA What portion of the total contract price would be recognized as revenue in 2025? In 2026? (Do not round intermediate calculations.) $ 2025 $616,740 1,006,260 414,000 1,717,000 352,000 2026 $1,441,000 850060 1386940 -0- 1,508,000On December 31, 2019, Magtuba Company finished consultation services and accepted in exchange a promissory note with a face value of P300,000, a due date of December 31, 2022, and a stated rate of 5%, with interest receivable at the end of each year. The fair value of the services is not readily determinable and the note is not readily marketable. Under the circumstances, the note is considered to have an appropriate imputed rate of interest of 10%. 13. The service revenue to be recognized for the year ended December 31, 2019 is 14. The carrying amount of the note receivable as of December 31, 2020 isCareful Company sells goods that cost P600,000 to a customer for P800,000 on December 20, 2021. The sales price includes an installation fee, which is valued at P80,000. The fair value of the goods is P740,000. The installation is considered a separate performance obligation and is expected to take 3 months to complete. *How many performance obligations are there in the contract? *How much is the revenue to be recognized in 2021 and 2022?
- Zoro Company enters into a contract to sell Product A and Product B on July 1, 2020 for an upfront cash payment of P250,000. Product A will be delivered at the end of the year, and Product B will be delivered the following year. Zoro Company sells Product A for P80,000 and Product B for P240,000. 1. How many performance obligations are there in the contract? 2.what is the transaction price? 3.how much is revenue to be recognized in 2020? 4. how much is revenue to be recognized in 2021?Answer the following questions.(a) On May 1, 2017, Goldberg Company sold some machineryto Newlin Company on an installment contractbasis. The contract required five equal annualpayments, with the first payment due on May 1,2017. What present value concept is appropriate forthis situation?(b) On June 1, 2017, Seymour Inc. purchased a new machinethat it does not have to pay for until June 1, 2019.The total payment on June 1, 2019, will include bothprincipal and interest. Assuming interest at a 12% rate,the cost of the machine would be the total paymentmultiplied by what time value of money concept?(c) Costner Inc. wishes to know how much money itwill have available in 5 years if five equal amounts of$35,000 are invested, with the first amount investedimmediately. What interest table is appropriate forthis situation?(d) Megan Hoffman invests in a “jumbo” $200,000,3-year certificate of deposit at First Wisconsin Bank.What table would be used to determine the amountaccumulated at the end of…On May 1, 2025, Sunland Company enters into a contract to transfer a product to Charlie Company on September 30, 2025. It is agreed that Charlie will pay the full price of $26,420 in advance on June 15, 2025. Charlie pays on June 15, 2025, and Sunland delivers the product on September 30, 2025, Prepare the journal entries required for Sunland in 2025. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry for the account titles and enter 0 for the amounts. List all debit entries before credit entries. Record journal entries in the order presented in the problem) Date May 1,2025 June 15, 2025 Sep 30, 2025 Account Titles and Explanation No Entry No Entry Cath Debit 0 26420 26420 Credit 26420 26420
- On October 5, 2020, a company enters into a contract to transfer a product to the customer. It is agreed that the customer will pay the full price of $50,000 in advance on October 10, 2020. The customer pays on October 10, 2020, and company delivers the product on October 26, 2020. When will the (seller) company make its first journal entry related to the above? Choose from 5, 10, and 26, and enter the date only.On January 1, 2023, Green Company finished consultation services and accepted in exchange a promissory note with a face value of $600,000, a due date of January 1, 2026, and a stated rate of 4%, with interest receivable at the beginning of each year (the first interest will be received on January 1, 2024). The fair value of the services is not easily determined and the note is not readily marketable. Under the circumstances, the note is considered to have an appropriate imputed rate of interest of 10%. The company has a fiscal year-end of December 31. Required: a) Calculate the present value of the note, using a financial calculator. b) Prepare a Schedule of Note Discount Amortization for Green Company under the effective interest method. (Round to whole dollars) c) Prepare the journal entries for 2023. Plz answer fast i give up voteCarla Vista Construction Company uses the percentage-of-completion method of accounting. In 2025, Carla Vista began work under contract #E2-D2, which provided for a contract price of $2,219,000. Other details follow: Costs incurred during the year Estimated costs to complete, as of December 31 Billings during the year Collections during the year (a) Your answer is correct. Revenue recognized in 2025 Revenue recognized in 2026 $ 2025 $620,490 970,510 $ 428,000 350,000 What portion of the total contract price would be recognized as revenue in 2025? In 2026? (Do not round intermediate calculations.) 865,410 2026 1,353,590 $1,429,000 -0- 1,699,000 1,471,000
- One of Rose’s suppliers, Powder Bhd, had adverse publicity due to the issue of cleanliness of its factory. On 1 September 2019, Rose Bhd decided to terminate the contract with Powder Bhd. The contract will expire in 8 months time. According to the contract, the cost to fulfill the contract is RM160,000 per month. It is also stipulated in the contract that Powder Bhd can accept a compensation of RM1,400,000 if the contract is terminated more than 6 months before it expires. Required:For each of the events above, explain whether provisions should be recognised in accordance with MFRS 137 Provisions, Contingent Liabilities and Contingent Assets.On October 1, 2021, Richardson Inc. entered into a contract to deliver one of its specialty snowblowers to Kickapoo Landscaping Co. The contract requires Kickapoo to pay the contract price of $4,000 in advance on October 15, 2021. Kickapoo pays Richardson on October 15, 2021, and Richardson delivers the snowblower on October 22, 2021. Does this satisfy the requirements under Step 1 of ASC 606 that a contract exists? Explain your answer.Pls answer this question with solutions. A manufacturer gives warranties at the time of sale to purchasers of its product. Under the terms of the contract of sale, the manufacturer undertakes to make good, by repair or replacement, manufacturing defects that become apparent within one year from the date of sale. On the basis of experience, it is probable (i.e., more likely than not) that there will be some claims under the warranties. Sales of ₱40 million were made evenly throughout 20X1. At December 31, 20x1 the expenditures for warranty repairs and replacements for the product sold in 20x1 are expected to be made 50% in 20x1 and 50% in 20x2. Assume for simplicity that all the 20x2 outflows of economic benefits related to the warranty repairs and replacements take place on June 30, 20x2. Experience indicates that 95% of products sold require no warranty repairs; 3% of products sold require minor repairs costing 10% of the sale price; and 2% of products sold require major…