Please show the solution on how to get the answer Ell 11:41 O Of 96.jpgChapter 3 - Introduction to coChapteProblem 3-14ComputP18a.the year:PLb.merchandise and did not operate during the year.Sold merchandise to unrelated parties at a gain of P800,000Sold merchandise to Darrel Asuncion, Pines Corporation's controlling steProbleA condethe santosecuritat a gain of P100,000Sold various merchandise to Choco Hills, Inc. at a gain of P200,000their utDuringP5,00Ca. P1,700,000b. P1,200,000Compute the total income of Pines Corporation subject to income tax.c. P1,100,000d. P900,000omot .00How nAww.bnsa.b.P4Problem 3-15Jonathan is a supervisory employee of Koronadal Corporation. He had the folitems of gross income during the year:Jonathan was paid P800,000 salaries.Jonathan's P100,000 personal loan was paid by Koronadal Corporation as refor his excellent performance.Jonathan's P50,000 advances to the company was paid by Koronadalexecutive officer as a gift.Jonathan is entitled to excess representation and transportation allowaJonathan received P200,000 total allowance out of which P120.000 was disbuProblKenjyfromtotala.b.ProbAn Arby him.wouleCompute Jonathan's total income subject to income tax.a. P980,000b. P900,000a.b.c. P880,000d. P800,000C.d.Problem 3-16Jen is engaged in business. The following pertains to her transactions during 20Sold hishalf of the car's P500,000 current fair value.iwelldProbA citipersonalcar which was purchased at P200,000 to a friend who paa.Sales ofb.merchandise was P800,000 and the cost of goods sold was P600,00Jen acquired several stocks from the Philippine Stock Exchange for spThese stocks have an aggregate purchase price of P400,000 but withfair value by December 31, 2021.Jen's house and lot which he acquired for P1,500,000 in 2010 now havefair value of P2,500,000.C.d.ProbAna crentab.9600000000000()II

Total income refers to the amount of income or profit earned by an individual or an entity in a…

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Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

ChapterMJ: Mornin's Joe

Section: Chapter Questions

Problem 3IFRS

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15.ABC Store purchased P100,000 from XYZ Supplies on July 1, 20X1. Terms: 5%, 3%, 2/15, n/30. FOB Shipping point, freight prepaid. Shipping costs was P2,000. Insurance for the shipment was P500 and non refundable tax was P1,000. At what amount should ABC recognize as cost of the inventory under the net method? 91,807 93,807 93,650 95,650
32.ABC Store purchased P100,000 from XYZ Supplies on July 1, 20X1. Terms: 5%, 3%, 2/15, n/30. FOB Shipping point, freight prepaid. Shipping costs was P2,000. Insurance for the shipment was P500 and non refundable tax was P1,000. At what amount should ABC recognize as cost of the inventory under the gross method? 91,807 93,807 93,650 95,650
Mustard Seed PLC adheres to IFRS. It recently purchased inventory for €100 million andspent €5 million for storage prior to selling the goods. Th e amount it charged to inventoryexpense (€ millions) was closest to:A. €95.B. €100.C. €105.
E7.5 (LO 2) (Recording Sales Gross and Net) On June 3, Bolton plc sold toArquette Company merchandise having a sales price of £2,000 with terms of 2/10,n/60. An invoice totaling £90, terms n/30, was received by Arquette on June 8 fromJohn Booth Transport Service for the freight cost. On June 12, the company received acheck for the balance due from Arquette Company.Instructionsa. Prepare journal entries on the Bolton plc books to record sales and receivables forall the events noted above under each of the following bases.1. Sales and receivables are entered at gross selling price.2. Sales and receivables are entered at net of cash discounts.b. Prepare the journal entry under basis (a)(2), assuming that Arquette Companydid not remit payment until July 29.
ABC Co sold stock on credit to Socks Ltd for R9200( inclusive or VAT) less a 5% trade discount. Mark-uo on cost is 10%. A) sales excluding VAT B) cost of sales C) accounting entry - vat is 15%
Bloom Company sells gift certificates redeemable only when merchandise is purchased. Upon redemption, the entity recognizes the unearned revenue as realized. Information for the current year:Unearned gift certificates revenue, January 1 ₱ 250,000Gift certificates sold 1,745,000Gift certificates redeemed 1,483,250Gift certificates which expired 80,000Gross profit rate based on cost 25% Requirements:8. What amount should be reported for the year ended December 31 as:A. SalesB. Cost of Sales
Purchase-related transactions Journalize entries for the following related transactions of Lilly Heating Air Company: A. Purchased 36,000 of merchandise from Schell Co. on account, terms 1/10, n/30. B. Paid the amount owed on the invoice within the discount period. C. Discovered that 9,000 of the merchandise purchased in (A) was defective and returned items, receiving credit. D. Purchased 5,000 of merchandise from Schell Co. on account, terms n/30. E. Received a refund from Schell Co. for return in (C) less the purchase in (D).
Under U.S. GAAP, LIFO is an acceptable inventory method. Financial statement information for three companies that use LIFO follows. All table numbers are in millions of dollars. Assume these companies adopted IFRS, and thus were required to use FIFO, rather than LIFO. a. Prepare a table with the following columns: (1) Difference between FIFO and LIFO inventory valuation. (2) Revised IFRS net income using FIFO. (3) Difference between FIFO and LIFO inventory valuation as a percent of total current assets. (4) Revised IFRS net income as a percent of the reported net income. b. Complete the table for the three companies. c. For which company would a change to IFRS for inventory valuation have the largest percentage impact on total current assets (Col. 3)? d. For which company would a change to IFRS for inventory valuation have the largest percentage impact on net income (Col. 4)? e. Why might Kroger have a negative impact on net income from using LIFO, while the other two companies have a positive impact on net income from using LIFO?
Unusual income statement items Assume that the amount of each of the following items is material to the financial statements. Classify each item as either normally recurring (NR) or unusual (U) items. If unusual item, then specify if it is a discontinued operations item (DO). a. Interest revenue on notes receivable. b. Gain on sale of segment of the company's operations that manufactures bottling equipment. c.Loss on sale of investments in stocks and bonds. d. Uncollectible accounts expense. e. Uninsured flood loss. (Hood insurance is unavailable because of periodic Hooding in the area.)
A, B, and C formed a joint operation. The following were taken from the joint operation's books: Debit Credit JO - Cash 80 B, Capital 60 C, Capital 88 The cost of unsold inventory is P72. The joint operation's profit is P44. How much is the balance of the joint operation account before distribution of profit?
60.Presented below is a list of items that may or may not be reported as inventory in a company’s December 31 balance sheet. 1. Goods out on consignment at another company’s store- P800,0002. Goods sold on installment basis- P100,000 3. Goods purchased F.O.B. shipping point that are in transit on December 31- P120,0004. Goods purchased F.O.B. destination that are in transit on December 31- P200,000 5. Goods sold to another company, for which our company has signed an agreement to repurchase at a set price that covers all costs related to the inventory- P300,000 How much of these items would typically be reported as inventory in the financial statements?
D Traders purchased a product for R1 450 (excluding VAT). It was resold for R2 100 (excluding VAT) Calculate the mark-up on cost for this product.

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