Question
In: Accounting
ABC Clothiers, Inc., has a contract with Taylor & Sons, a retailer, to deliver one thousand...
ABC Clothiers, Inc., has a contract with Taylor & Sons, a
retailer, to deliver one thousand summer suits to Taylor’s place of
business on or before May 1. On April 1, Taylor receives a letter
from ABC informing him that ABC will not be able to make the
delivery as scheduled. Taylor is very upset, as he had planned a
big ad campaign. Can Taylor immediately sue ABC for breach of
contract (on April 2)? Suppose that Taylor’s son, Tom, tells his
father that they cannot file a lawsuit until ABC
actually fails
to deliver the suits on May 1. Who is correct, Taylor Senior or
Tom? Explain.
Solutions
ekkarill92 answered 1 year agoRelated Solutions
ABC Inc. ABC Inc. (“ABC” or “the Company”), an SEC registrant, is a retailer that sells...
ABC Inc.
ABC Inc. (“ABC” or “the Company”), an SEC registrant, is a
retailer that sells men’s and women’s clothing and accessories. As
an incentive to its employees, the Company established a
compensation incentive plan in which a total of 100,000 options
were granted on January 1, 20X1. On that date (the grant date),
ABC’s stock price was $15.00 per share.
The significant terms of the incentive plan are as follows:
The options have a $15.00 “strike” or exercise price...
You are negotiating a contract with a new customer to deliver one of the components for...
You are negotiating a contract with a new customer to deliver
one of the components for their product. You estimate that on
average you should be able to deliver the product in 8 hours once
the customer places the order. Based on historical data, you
believe it is reasonable to assume the standard deviation is 1 hour
and that actual delivery times are normally distributed. The
customer offers you a bonus for deliveries when you are able to
deliver the...
You are negotiating a contract with a new customer to deliver one of the components for...
You are negotiating a contract with a new customer to deliver
one of the components for their product. You estimate that on
average you should be able to deliver the product in 8 hours once
the customer places the order. Based on historical data, you
believe it is reasonable to assume the standard deviation is 1 hour
and that actual delivery times are normally distributed. The
customer offers you a bonus for deliveries when you are able to
deliver the...
Eureka Design Bhd entered into a contract to deliver one of its fixtures and fittings to...
Eureka Design Bhd entered into a contract to deliver one of its
fixtures and fittings to Creative Landscaping Bhd on 1st July 2020.
The contract requires Creative Landscaping to pay the contract
price of RM30,000 in advance on 15th July 2020. Creative pays
Eureka on 15th July 2020 and Eureka delivers the fixtures and
fittings (with cost of RM19,000) on 31st July 2020.
Required:
i) Explain the 5-step of revenue recognition as outlined in MFRS
15 Revenue from Contract With...
On January 1, 2019, Fulton Inc. enters into a contract with Gibson to deliver goods. Gibson...
On January 1, 2019, Fulton Inc. enters into a contract with
Gibson to deliver goods. Gibson pays $100,000 at the time the
contract is signed, at which time the goods are transferred and
Fulton’s performance obligation is complete. In addition, Gibson
agrees to pay Fulton $100,000 on December 31, 2019, and December
31, 2020. If Fulton entered into a financing arrangement with
Gibson it would charge an interest rate of 9%.
Required:
1.
Determine the transaction price for the contract...
On January 1, 2017, Fulton Inc. enters into a contract with Gibson to deliver goods. Gibson...
On January 1, 2017, Fulton Inc. enters into a contract with
Gibson to deliver goods. Gibson pays $100,000 at the time the
contract is signed, at which time the goods are transferred and
Fulton’s performance obligation is complete. In addition, Gibson
agrees to pay Fulton $100,000 on December 31, 2017, and December
31, 2018. If Fulton entered into a financing arrangement with
Gibson it would charge an interest rate of 9%.
Required:
1. Determine the transaction price for the contract...
a) Rural Support Ltd has been successful in gaining a major contract to prepare and deliver...
a) Rural Support Ltd has been
successful in gaining a major contract to prepare and deliver meals
to elderly and disabled people who reside in Windsor. These
operations were previously managed by the Windsor Council, and the
services were outsourced by the council as a cost-saving measure.
Rural Support tendered a low price, so it is very focused on cost
control. The following standard prices have been established for
some major food ingredients:
Standard price
Lamb roast
$16 per kilogram...
1. On November 1, 2018, Taylor signed a one-year contract to provide handyman services on an...
1. On November 1, 2018, Taylor signed a one-year contract to
provide handyman services on an as-needed basis to King Associates,
with the contract to start immediately. King agreed to pay Taylor
$5,400 for the one-year period. Taylor is confident that King will
pay that amount, but payment is not scheduled to occur until 2019.
Taylor should recognize revenue in 2018 in the amount of
Multiple Choice
a. $900
b. $2,700
c. $0
d. $5,400
2.
Mary signed up and...
ABC Inc, a Canadian retailer which operates more than 1,000 stores in Canada, reported the following...
ABC Inc, a Canadian retailer which
operates more than 1,000 stores in Canada, reported the following
balances as at December 31, 2019:
7% Par $100 convertible bonds, issued
at
par $ 250,000
3,000 call options, each
entitled to purchase 1 common share
Cumulative Preferred shares, 36,000
convertible shares
outstanding $ 960,000
Common shares, 112,500 shares issued
and
outstanding 2,880,000
Contributed surplus on repurchase of
common
shares 31,200
Retained
earnings 1,032,000
ABC Inc. applies IFRS. The company
also informed you details related to the following transactions
during 2020:...
ABC Construction has the following contract: Contract price 1,000,000 Cost incurred cost to complete Dec 31...
ABC Construction has the following contract: Contract price
1,000,000 Cost incurred cost to complete Dec 31 2017 200,000
600,000 Dec 31 2018 350,000 250,000 Dec 31 2019 300,000 850,000
Billings Cash Received Dec 31 2017 250,000 200,000 Dec 31 2018
400,000 350,000 Dec 31 2019 350,000 450,000 1,000,000 1,000,000 A.
Prepare a % of completion schedule for the three years B. Prepare
journal entries for 3 years
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