Big co., a construction company, builds a grocery store. the contract calls for a final price of $5 million. big co. incurred $4.5 million in costs and stands to make a profit of $500,000. on a final inspection, the grocery store owner is upset. his blueprints called for 24 skylights, but the finished building has only 12. installing the additional skylights would cost $100,000. big co. made no other errors. how much must the grocery store owner pay big co.?

Required prepare the necessary adjusting entries in the general journal as of december 31, assuming the following: on september 1, the company entered into a prepaid equipment maintenance contract. birch company paid $3,400 to cover maintenance service for six months, beginning september 1. the payment was debited to prepaid maintenance. supplies on hand at december 31 are $3,900. unearned commission fees at december 31 are $7,000. commission fees earned but not yet billed at december 31 are $3,500. (note: debit fees receivable.) birch company's lease calls for rent of $1,600 per month payable on the first of each month, plus an annual amount equal to 1% of annual commissions earned. this additional rent is payable on january 10 of the following year. (note: be sure to use the adjusted amount of commissions earned in computing the additional rent.)