On january 1 revis consulting entered into a contract to complete a cost reduction program for green financial over a six-month period. revis will receive $24,800 from green at the end of each month. if total cost savings reach a specific target, revis will receive an additional $12,400 from green at the end of the contract, but if total cost savings fall short, revis will refund $12,400 to green. revis estimates an 80% chance that cost savings will reach the target and calculates the contract price based on the expected value of future payments to be received.
required:
prepare the following journal entries for revis:
1. to 3.
prepare the journal entry on january 31 to record the collection of cash and recognition of the first month’s revenue,
assuming total cost savings exceed target, record the entry on june 30 for receipt of the bonus and
assuming total cost savings fall short of target and record the entry on june 30 for payment of the penalty.

Insurance companies have internal controls in place to protect assets, monitor the accuracy of accounting records and encourage operational efficiencies and adherence to policies. these internal controls are generally of two types: administrative controls and accounting controls. administrative controls are the policies and procedures that guide the daily actions of employees. accounting controls are the policies and procedures that delineate authorizations of financial transactions that are done, safeguard assets, and provide reports on the company’s financial status in a reliable and timely manner. internal controls should include both preventative and detective controls. the purpose of preventative controls is to stop problems and errors before they occur. detective controls identify problems after they have occurred. preventative controls are usually more effective at reducing problems, but they also tend to be more expensive. internal controls must be flexible to adjust for changes in laws and regulations in addition to adding new products or modifying current ones. companies must also do regular analyses to ensure that the benefits of implementing the controls are worth their costs. when concerned about paying unwarranted insurance claims which type of control would be useful?

Blue spruce corp. has the following transactions during august of the current year. aug. 1 issues shares of common stock to investors in exchange for $10,170. 4 pays insurance in advance for 3 months, $1,720. 16 receives $710 from clients for services rendered. 27 pays the secretary $740 salary. indicate the basic analysis and the debit-credit analysis.

(a) what was the opportunity cost of non-gm food for many buyers before 2008? (b) why did they prefer the alternative? (c) what was the opportunity cost in 2008? (d) why did it change?