Company agrees to pay Client the following incremental volume incentive based on annual Cafe and Catering Sales at all Locations under this Agreement: Annual Combined Net Cafe & Catering Sales Volume Incentive $8,000,000-$9,999,999 = 4.00% $10,000,000-$11,999,999 = 4.25% $12,000,000-$14,999,999 = 4.50% $15,000,000-$16,999,999 = 5.00% $17,000,000+ = 5.50% Please note - Compass records liabilities throughout the year P&L Reporting From Period 1, 2015 Profit Center: Client C To Period 12, 2015 Period 1, 2015 2, 2015 3, 2015 4, 2015 5, 2015 6, 2015 7, 2015 8, 2015 9, 2015 10, 2015 11, 2015 12, 2015 TOTAL TOTAL SALES 1,792,040 1,611,670 1,858,902 1,619,261 1,842,207 1,802,552 2,207,373 2,024,065 1,881,086 ,047,443 ,530,778 1,845,760 22,008,137 NET PRODUCT COST 1,187 541 104,283 953,84 891,832 970,109 1,009,812 1,096,504 1,008,839 982, 144 1,069,752 890,08 965,530 11,930,280 TOTAL PERSONNEL COST 1,133 232 959.75 982, 787 1,029,647 963,415 1,045,159 1,123,650 1,001,210 956,94 1,075,756 908,11 922,431 12,102,108 TOTAL OTHER COSTS 197,593 246,569 270,103 237,250 250,486 223,110 291,457 284,195 00 564 804,549 249.987 258,456 3,224,320 PROFIT/[LOSS] (885,326) 496,939) 347,834) (539,468) 341,801 (475,529) 304,238 270,180 (358,567) 402,624) 517,406] 310,657 5,253,571) YTD PROFIT/(LOS5) (886,326) 1,385,265) (1,733,099) (2,272,567] (2,614,368] (3,089,897) (3,394,135) (3,654,315) (4,022,882) 14,425,505) 4,942,914) (5,253,571) Question #1: Would Compass have a liability to the client at the end of period 4, 2015? Please show your calculation and provide any entries necessary to properly state the financials in that period of time. Question #2: Would Compass have a liability to the client at the end of period 7, 2015? Please show your calculation for the incremental changes and provide any entries necessary to properly state the financials in that period of time. Question #1: Would Compass have a liability to the client at the end of period 4, 2015? Please show your calculation and provide any entries necessary to properly state the financials in that period of time. Question #2: Would Compass have a liability to the client at the end of period 7, 2015? Please show your calculation for the incremental changes and provide any entries necessary to properly state the financials in that period of time