Question 8 (1 point)

Gray Construction enters into a contract with a customer to build a warehouse for $950,000 on March 30, 2022 with a performance bonus of $50,000 if the building is completed by July 31, 2022. The bonus is reduced by $10,000 each week that completion is delayed. Gray commonly includes these completion bonuses in its contracts and, based on prior experience, estimates the following completion outcomes:

Completed by	Probability
July 31, 2022	65%
August 7, 2022	25%
August 14, 2022	5%
August 21, 202	5%

The transaction price for this transaction is

Question 8 options:

a)	$685,000
b)	$950,000
c)	$995,000
d)	$652,500

Question 9 (1 point)

Baez Corp. began operations on Jan. 1, 2023. Baez Corp. is authorized to issue 150,000 shares of it's 6%, $40 par value preferred stock. The company is authorized to issue 650,000 shares of the common stock with a par value of $2 per share. On January 5, 2023, the company issued 225,000 shares of common stock for cash at $13 per share. What is the journal entry to record the issuance of the common stock shares?

Question 9 options:

a)

Cash	2,925,000
Common Stock		2,925,000

b)

Cash	2,925,000
Common Stock		450,000
Paid-in Capital in Excess of Par Value - Common Stock		2,475,000

c)

Cash	450,000
Common Stock		450,000

d)

Cash	8,450,000
Common Stock		1,300,000
Paid-in Capital in Excess of Par Value - Common Stock		7,150,000

Question 10 (1 point)

On January 1, 2024, Alzolay Co. had 275,000 shares of common stock oustanding. The following transactions took place during 2024.

1. March 1, 2024, Alzolay Co. issued an 100,000 common stock shares.

2. On May 1, 2024, the company purchased back 85,000 common stock shares.

3. On August 1, 2024, the company issues 50,000 common stock shares.

What are the weighted-average number of shares oustanding for 2024? (Round the calculations/weighted amounts to 2 decimal places.)

Question 10 options:

a)	275,000
b)	322,500
c)	340,000
d)	The correct answer is not listed.

Question 11 (1 point)

Bryant Co. has 715,000 shares of common stock authorized to issue and 218,000 shares of common stock issued and outstanding during the year. On October 1, 2023, the company's board of directors declared a cash dividend of $3.25 per share to common stockholders on record as of October 15, 2023. The company made the cash payment on October 31, 2023. On October 31, 2023 the company's journal entry should include a debit to

Question 11 options:

a)	Retained Earnings for $2,323,750
b)	Dividends Payable for $708,500
c)	Dividends Payable for $2,323,750
d)	Retained Earnings for $708,500

Question 12 (1 point)

Hendricks Inc. granted their executives incentive stock options on January 1, 2023. On this date, 275,000 shares of the company's $5 par value common stock were granted at an option price of $40 per share. On the grant date, the market price of the stock was $50 per share. Market prices of the stock were as follows:

December 31, 2024	$70 per share
December 31, 2025	$82 per share

The Black-Scholes option pricing model determines total compensation expense to be $1,500,000. The service period for the options is 2 years. The options were exercisable beginning on January 1, 2025 for employees still working at Hendricks. The options expire on December 31, 2029.

On June 1, 2025, 110,000 options were exercised and the market price on this date was $75. What amount should be debited to Paid-in Capital - Stock Options?

Question 12 options:

a)	$375,000
b)	$600,000
c)	$750,000
d)	$0.0

Question 13 (1 point)

Bryant Inc. purchased 10% of Rizzo Corp's 150,000 shares of commonst stock at a cost of $8 per share. On June 30, Rizzo Corp. declared and paid $62,000 cash dividend to all stockholders. As of December 31, the company reported net income of $215,000 for the year. At the end of the year on December 31, the market value of Rizzo Corp's stock was $10 per share.

What should be the entry on December 31 for Bryant Inc.?

Question 13 options:

a)	No entry needed.
b)	Debit to Fair Value Adjustment for $30,000.
c)	Debit to Equity Investments for $30,000.
d)	Debit to Unrealized Holding Gain or Loss - Income for $30,000.

Question 14 (1 point)

Rizzo, Inc. is constructing a building for a client. The company began work in 2023 on a contract for $24,350,000. Other data are as follows:

	2023	2024
Costs incurred to date	$15,000,000	$23,000,000
Estimated costs to complete	7,500,000
Billings to date	8,000,000	24,350,000
Collections to date	6,500,000	22,500,000

Rizzo uses the percentage-of-completion method, what gross profit should the company recognize in 2023?

Question 14 options:

a)	$1,233,333
b)	$0.00
c)	$1,850,000
d)	$9,350,000