A hotelier owned a hotel and the surrounding land. A portion of the land immediately behind the hotel was unused, and the hotelier wanted to develop it and install an in-ground pool. She contacted a general contractor in January, and the parties agreed that the contractor would build out a large terrace complete with a fifty-foot in-ground pool. They agreed to a price of $400,000, with the contract to be completed before March 15, payable upon completion of the work. The hotelier stressed to the contractor the importance of completing the work before March 15 because that was when her vacation season began and she planned a special advertisement of the pool terrace to boost sales. The hotelier paid the contractor the $150,000 initial payment, but the contractor abandoned the job in late January without performing any work on the site. The hotelier hired a second contractor in February, who charged her $550,000 to complete the job. Despite the rush, the terrace was not ready until April 15, and the hotelier lost $70,000 in net profit due to documented reservation cancellations because of the unfinished construction. Required:
What is the most a court could properly award the hotelier?

Landon mars, the company bookkeeper, recorded the $10,000 purchase of land as rent expense by decreasing cash and decreasing shareholders' equity. what is the effect of this error on the accounting equation

Peninsula products has just applied for a loan at your bank. when reviewing peninsula's books for the year that just ended, you notice that the firm uses the fair value option for its bonds payable. you also see that the firm recorded a $55,000 debit in its bonds payable account and a $55,000 credit in its unrealized holding gain or loss"income account. over that same period, interest rates decreased by about 0.5 percent. how should this information affect the bank's decision as to whether to grant peninsula a loan? a : the bank should strongly consider giving a loan to peninsula because the changes in firm's bonds payable and unrealized holding gain or loss"income accounts suggest that peninsula has seen an increase in its credit rating over the past year. b : the bank should put little emphasis on the changes in peninsula's bonds payable and unrealized holding gain or loss"income accounts because these changes are likely the result of the rise in interest rates. c : the bank should hesitate before giving a loan to peninsula because the changes in firm's bonds payable and unrealized holding gain or loss"income accounts suggest that peninsula has seen a decline in its credit rating over the past year. d : the bank should put little emphasis on the changes in peninsula's bonds payable and unrealized holding gain or loss"income accounts because these changes are likely unrelated to either interest rates or the firm's credit rating.

Wallace company provides the following data for next year: month budgeted sales january $120,000 february 108,000 march 140,000 april 147,000 the gross profit rate is 35% of sales. inventory at the end of december is $29,600 and target ending inventory levels are 10% of next month's sales, stated at cost. what is the amount of purchases budgeted for january?