Rothbart Manufacturing agrees to manufacture bumper cars for Banners AmusementParks. Under the terms of the contract, Banners will pay Rothbart a total of $78,000,and Banners can cancel the contract if it so chooses but must pay Rothbart for workcompleted. Rothbart believes that, if Banners cancelled the contract, Rothbart could sellthe bumper cars to another amusement park and still make a profit. The manufacturingcontract is expected to last six months, and as of December 31, 2024, the job is 80%complete. How much revenue should Rothbart recognize in 2024 for this contract?Multiple Choice$0O $78,000$15,600$62,900

Revenue recognition When the title to the items moves from the seller to the buyer, the revenue…

the bumper cars to another amusement park and still make a profit. The manufacturing contract is expected to last six months, and as of December 31, 2024, the job is 80% complete. How much revenue should Rothbart recognize in 2024 for this contract? Multiple Choice $0 $78,000 O $15,600 $62,900

the bumper cars to another amusement park and still make a profit. The manufacturing contract is expected to last six months, and as of December 31, 2024, the job is 80% complete. How much revenue should Rothbart recognize in 2024 for this contract? Multiple Choice $0 $78,000 O $15,600 $62,900

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Rothbart Manufacturing agrees to manufacture bumper cars for Banners Amusement
Parks. Under the terms of the contract, Banners will pay Rothbart a total of $78,000,
and Banners can cancel the contract if it so chooses but must pay Rothbart for work
completed. Rothbart believes that, if Banners cancelled the contract, Rothbart could sell
the bumper cars to another amusement park and still make a profit. The manufacturing
contract is expected to last six months, and as of December 31, 2024, the job is 80%
complete. How much revenue should Rothbart recognize in 2024 for this contract?
Multiple Choice
$0
O $78,000
$15,600
$62,900

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