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Client A Per the contract "company will operate the food service

Client A Per the contract company will operate the food service on its own credit on a profit and loss basis. Any excess proQuestion 2: Would the company have a liability to Client A at the end of period 11, 2015? Please show your calculation and pr

Client A Per the contract "company will operate the food service on its own credit on a profit and loss basis. Any excess profit over $160,000.00 will be split 50/50 with Client receiving 50% and company receiving 50% based on company's fiscal year". Profit Center: Client A P&L Reporting From Period 1. 2015 To Period 12, 2015 2, 2015 3.2015 1, 2015 4, 2015 5.2015 6.2015 7.2015 8.2015 9, 2015 10,2015 11, 2015 12, 2015 TOTAL Period TOTAL SALES 613,049 410,599 225,443 410,544 513,935 467,818 513,764 148,199 156,243 98,411 407,131 731,919 4,697,055 NET PRODUCT COST 249,412 171,226 95,639 161,130 211,125 204,311 200,714 49,073 60,596 56749 165,105 272,096 1.897,176 TOTAL PERSONNEL COST 231,228 168,979 118,966 156,315 187,844 180,752 212,105 91,474 61,882 84,017 250,136 230,290 1,973,988 TOTAL OTHER COSTS 56,661 45,825 26,956 33,181 45,063 40,134 36,483 30,685 16,968 32,332 85,458 42,258 492,004 PROFITX(LOSS) 75,748 24,569 |-16,118 59,918 69,903 42,621 64,462 -23,033 16,797 -74,687 -93,568 187,275 333,887 YTD PROFITX(LOSS) 75,748 100,317 84,199 144,117 214,020 256,641 321,103 298,070 314,867 240,180 146,612 333,887 Question 1: Would the company have a liability to Client A at the end of period 6, 2015? Please show your calculation taking in account any prior period adjustments and provide any entries necessary to properly state the financials in P6, 2015.
Question 2: Would the company have a liability to Client A at the end of period 11, 2015? Please show your calculation and provide the necessary entry to properly state the financials in that period of time.

Aug 10 2020 View more View Less

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