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- For each of the following situations write the principle, assumption, or concept that justifies or explains what occurred. A. A landscaper received a customers order and cash prepayment to install sod at a house that would not be ready for installation until March of next year. The owner should record the revenue from the customer order in March of next year, not in December of this year. B. A company divides its income statements into four quarters for the year. C. Land is purchased for $205,000 cash; the land is reported on the balance sheet of the purchaser at $205,000. D. Brandys Flower Shop is forecasting its balance sheet for the next five years. E. When preparing financials for a company, the owner makes sure that the expense transactions are kept separate from expenses of the other company that he owns. F. A company records the expenses incurred to generate the revenues reported.Jada Company had the following transactions during the year: Purchased a machine for $500,000 using a long-term note to finance it Paid $500 for ordinary repair Purchased a patent for $45,000 cash Paid $200,000 cash for addition to an existing building Paid $60,000 for monthly salaries Paid $250 for routine maintenance on equipment Paid $10,000 for major repairs Depreciation expense recorded for the year is $25,000 If all transactions were recorded properly, what is the amount of increase to the Property, Plant, and Equipment section of Jadas balance sheet resulting from this years transactions? What amount did Jada report on the income statement for expenses for the year?A. Jamal Textile Enterprise is a textile manufacturer operating in Selangor. The company was incorporated on 1June 2019 and closes its account annually on 31 December. All machinery purchased was imported from Taiwan and it was delivered on 1January2020, and the business commenced officially on 1February 2020. The following expenditure was incurred: (i) Purchased machinery that cost RM1,000,000 on 1June 2020 and paid deposit RM100,000 on the day of purchase, while the remaining RM900,000 was paid on 1November 2020. (ii) Purchased forklift on hire purchase term on 1January 2020. The total cost of the forklift is RM125,000, and Jamal Textile paid down payment of RM5,000. The total installment payment was RM48,000, excluding an interest amounting RM9,580. (iii) Purchased a new car (Proton X50) on 30December 2020 for the General Manager of the company costing RM120,000 . (iv) Purchased a computer with printer on 1April 2019 for RM5,500. This computer specification however was found to be…
- TA services were formed on May 1, 2020. The following transactions took place during the first month. May 1 Mr. Tarek Ahmed invested $80,000 in the business, as its sole owner.May 2 Hired two employees, who will be paid a salary $1,000 per month.May 3 Paid $20000 in advance for rent of a warehouse.May 4 Purchased furniture & equipment costing $30,000. $10,000 paid in cash and $20,000 payable in next 6 months.May 5 Paid $22,000 for 1-year insurance policy.May 7 Purchase basic office supplies for $500 on account.May 8 $1,500 received in advance for which services to be performed in June.May 10 Revenue earned in cash $20000 and on account $10000.May 12 Payment to creditor for May 7 transactions.May 16 Received from debtors for May 10 transaction.May 22 Withdraw by owner $ 700.May 27 Purchase of pick-up van $ 5000 on account. Instructions:(a) Pass the Journal Entry & Post to ledger.(b) Prepare Trial Balance.Taehyung started operating a service proprietorship on April 1, 2021 with an initial cash investment of P100,000. The business provided P58,500 of services in April and received full payment in May. The business incurred expenses of P20,300 in April which were paid in June. During May, Taehyung drew P4,300 against his capital account. What was the income to be reported for the 2 months ended May 2021 under cash basis?Nunez Ludeiro Partners started a new business on July 1, 2021. That same day, Nunez Ludeiro Partners also received $320,000 of cash from issuing common stock and borrowed $160,000 from a friend. On July 1, 2021 Nunez Ludeiro Partners also purchased equipment for $194,400. The equipment has a useful life of 108 months. On July 1, 2021, Nunez Ludeiro also paid $88,800 of cash to rent office space for a 24 month period. During 2021, the Company provided services valued at $86,400 and had collected $34,560 of that amount at year-end. The company will collect the remaining portion in the following year.The company's payroll for 2021 was $54,800, which was paid in full during 2021. Use this information to find the company's balance of total assets as of 12/31/2021?
- XYZ Holdings is a company that purchases widgets from Company ABC. This is their first year of operations. The accounts for the financial year ending 30 June 2021 are as follows: Sales 100,000 Accounts receivable 80,000 Drawings 20,000 Building 20,000 Bank loan, due 30 June 2030 100,000 Cost of sales 50,000 Accumulated depreciation - Building 10,000 Cash 60,000 Wages 15,000 Opening retained profit 0 Electricity 500 Capital 50,000 Property, plant and equipment 20,000 Depreciation 12,000 Accounts payable 30,000 Accumulated depreciation - Property, plant and equipment 2,000 Accrued expenses 500 Interest expense 5,000 Insurance expense 10,000 Closing retained profit ??? Required: Prepare an income statement in the Excel template in the 'Income Statement' tab on the LMS, upload your worksheet. Ignore GST and taxes.Marshall Co. is a management consulting company that incorporated on March 15, 2021 and has a December 31 year end. They began renting their office space on April 1st and immediately purchased furniture and fixtures for $46,900. They also purchased computer hardware for $9,000 (class 50 with 55% CCA rate). Marshall, the company president, also purchased a 2021 Land Rover for $134,000.Required: Determine the maximum CCA that can be taken in 2021.Lilo started operating a service proprietorship on April 1, 2021 with an initial cash investment of P100,000. The business provided P58,500 of services in April and received full payment in May. The business incurred expenses of P20,300 in April which were paid in June. During May, Lilo drew P4,300 against his capital account. What was the income to be reported for the 2 months ended May 2021 under cash basis?
- The company purchases $2,000,000 of equipment to be used in its manufacturing plant. The company pays the equipment vendor $500,000 up front, and will pay the remaining amount later. For each element of the fundamental accounting equation (A, L, E), indicate whether that element increases, decreases, or ultimately remains unchanged.Nilamsari Bhd is a manufacturing company, incorporated since year 2013. The following information are extracted from the financial accounting record of Nilamsari for the year ended 31 December 2017. During the year, depreciation expense and capital allowance for plant were RM800,000 and RM890,000 respectively. At the end of the year, the carrying amount of plant was RM6,100,000 and tax written down was RM3,680,000. A research and development cost amounted to RM2,000,000 incurred during year 2017. Nilamsari capitalises product development cost and amortises them over the expected useful lives of the products. Amortisation of product development cost for year 2017 was RM600,000. As at 31 December 2016 and 2017, the product development cost (intangible asset) were RM4,000,000 and RM5,400,000 respectively. Current tax laws allows all research and development costs to be written off immediately in computing taxable profit. Nilamsari maintains a provision for warranty costs in relation to…Solomon Company started year 2 with $90,000 in its cash and common stock accounts. During year 2 Solomon paid $67,500 cash for employee compensation. Assume this is the only transaction that occurred in year 2. Required Determine the total amount of assets at the end of year 2, assuming Solomon is a manufacturing company and the employees were paid to make products. Determine the amount of expense recognized on the year 2 income statement, assuming Solomon is a manufacturing company and the employees were paid to make products. Determine the total amount of assets at the end of year 2, assuming Solomon is a service company. Determine the amount of expense recognized on the year 2 income statement, assuming Solomon is a service company.