After a year of operation, they suffered a big loss and decided to terminate their business and as of this date, ARRRGH Company has a total assets of P140,000 and has a liabilities of P190,000 respectively. Based on these information alone Based on the preceding information, is Ana, Roro, Reiji, Rnold, Gina and Harold liable for ARRRGH Company's liabilities to its creditors? Explain your answer
Q: How much is her EBIT at the end of the first month?
A: The calculation of EBIT ( Earnings Before Interest and Tax) of Mrs Hiphop is shown hereunder : Total...
Q: Recording of next year's purchases as purchases of the current year will Group of answer choices ov...
A: Since there are multiple questions posted we will answer the first question for you as per the guide...
Q: Depreciation of equipment during 2021 was overstated by P 16,000. What would be the adjusting entry ...
A: Overstated of depreciation means depreciation has been charged more than the required depreciation. ...
Q: Compute pension expense for 2020 and 2021. Pension expense for 2020 121,800 Pension expense fo...
A: Pension expense is the amount that a business charges from the income statement as a pension expense...
Q: tory, January 1, 2022, P 15,000; Credit - Cost of Sales, P 15,000. b. Debit - Retained Earnings, P 1...
A: The inventory balance of December 31 , 2021 is carried forward to January 1, 2022. If the ending inv...
Q: Understatement of ending inventory 25,000 30,000 Overstatement of ending inventory 16,000 Omis...
A: Correct net income is calculated after making adjustments in the net income and correct retained ear...
Q: In year 2022, collection of interest income is credited to Interest Expense. What is the effect of t...
A: >When recording a financial transaction relating to revenues and expenses, following treatments a...
Q: Sarasota Importers provides the following pension plan information. Fair value of pension plan ass...
A: Plan assets are the assets/investments held by a long-term employee benefit fund for the purpose of ...
Q: Accrued rent income of P 25,000 was overlooked at the end of 2021. What would be the adjusting entry...
A: Solution Concept Accrued income means the income that is earned but not received yet The accrued inc...
Q: On January 1, 2019, a company acquired transportation equipment by paying cash of P400,000 and issui...
A: Equal annual installments of noninterest-bearing note payable(P4000000 / 4) 1000000 Rate of Intere...
Q: During September, Aparna had sales of 148,000, which made a gross profit of 40,000. Purchases amount...
A: Solution.. Sales = Rs148,000 Gross profit = Rs40,000 Purchase = Rs100,000 Opening inventory = Rs...
Q: How much would you need to pay up front for a car that sells for $13,000, with 7% sales tax, a $2,60...
A: Down Payment = $2,600 License and registration fee = $78 Insurance premium = $99 Sales Tax = 7% x $1...
Q: TRUE OR FALSE STATEMENT 1: If the ending inventory of finished goods is understated, net income wi...
A: Ending inventory is the value of goods lying in the stock on the date of closing the books.
Q: On January 1, 2019, a company acquired transportation equipment by paying cash of P400,000 and issui...
A: Carrying value of note payable is the present value of all the payments to be made on the note disco...
Q: 860,000 692,000 ce 46,120 64,600 788,000 836,000 16,000 20,000
A: a. Gross profit Rate for 2020 as, (Gross profit/ net sales) x 100 Net sales - cost of goods sold Ne...
Q: Logistics Solutions provides order fulfillment services for dot.com merchants. The company maintains...
A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a...
Q: Mangiamele Corporation's Maintenance Department provides services to the company's two operating div...
A: Maintenance Department Cost to be charged to paints division Formula (Budgeted fixed cost * percent...
Q: Exercise 7-18 (Algo) Notes receivable [LO7-7] On June 30, 2021, the Esquire Company sold some mercha...
A: Notes receivable is considered a negotiable instrument. it is classified under current assets if the...
Q: Accrued salaries of P 20,000 was overlooked at the end of 2021. What would be the adjusting entry if...
A: Note: Due to overlooking of accrued salaries, profit will be decline in the year of expense booking....
Q: NNicole organized a new corporation. The corporation began business on April 1 of year 1. She made t...
A: Organizational expenses are those that are directly tied to the firm's establishment. If the corpora...
Q: Overhead Variances, Two- And Three-Variance Analyses Oerstman, Inc., uses a standard costing system ...
A: given The budget is based on an expected annual output of 123,000 units requiring 492,000 direct lab...
Q: In which of the following methods, issues of materials are priced at pre-determined rate? None of th...
A: Standard price method : Under this method, materials are priced at some predetermined rate of standa...
Q: Grand Company reported the following on its income statement: Income before income taxes$ ,000 Incom...
A: Lets understand the basics. Times interest earned ratio indicates the companies ability to pay inter...
Q: Which of the following is the incorrect effect of counterbalancing errors? a. None of the statement...
A: Counterbalancing error is made when an error is made that cancels out another error. For example th...
Q: Non-recognition of deferral at the end of the accounting period will a.understate income and und...
A: Deferrals means the payment made or received for the expenses or the income which has not been yet p...
Q: An ingot of mass lo148 ¢g contains copper, tin, and lead in the ratio q:4:1. Cal culate the value of...
A: Price of metals per KG = Price per tonne/1,000 kg Copper = 1,250/1,000 = 1.25 kg Lead = 680/1,000 =...
Q: CONSOLIDATED FINANCIAL STATEMENTS INTERCOMPANY SALE OF FIXED ASSETS PROBLEM J. Peter Corporation own...
A: When a company acquires any interest in another company through purchase of its shares the consolida...
Q: Review of internal control system is very important for the auditor as the effectives of internal co...
A: Ans. Internal control policies are implemented and executed by management. An Auditor is required to...
Q: In year 2022, collection of interest income is credited to Interest Expense. What is the effect of t...
A: Solution Concept When the income is not recorded the effect is understatement of the revenue and it ...
Q: On January 1, 2010, Rambutan Corporation purchased debt securities for cash of P765,540. The securit...
A: Rambutan Corporation purchased debt securities at P765,540 which carries the interest rate of 10% ov...
Q: Recording of next year's purchases as purchases of the current year will overstate retained earning...
A: Solution Concept Purchase is the recorded in the debit side of the income statement Purchase is the ...
Q: In October, November, and December, CVM Inc. expects to sell 50,000, 48,000, and 51,000 units, respe...
A: Budgeted production = Budgeted sales + Desired ending inventory - Beginning inventory Where, Desire...
Q: The notes receivable is debited by the bookkeeper instead of accounts receivable. What is the effect...
A: This is an auto balancing error. One asset (notes receivable) is debited instead of other (accounts ...
Q: During August, 2021, a company produced 1,000 units of a product using 3,600 pounds of direct materi...
A: Answer) Calculation of Material Quantity variance Material Quantity variance = (Standard quantity of...
Q: On December 31, 2019, Ana Inc. sold merchandise for P750,000 to Ysa Inc. The terms of the sales were...
A: Solution Merchandise is an inventory assets that a retailer , distributor or wholesaler purchases fr...
Q: Which of the following describes the best way to build/create a balanced scorecard? O a. Step 1. Cre...
A: Balanced Scorecard- A balanced scorecard is a statistic for measuring managerial performance. It is ...
Q: 1. Prepare a table that shows how the cost of supervision behaves in total and on per-unit basis as ...
A: Fixed costs are those costs which will not change with change in activity level. These costs will be...
Q: Retained earnings at December 31, 2023 is not affected if Inventory at the beginning of year 2023 ...
A: If the beginning inventory of 2023 is overstated (or ending inventory of 2022 is overstated): Net i...
Q: Rie the actvities with their precedence sequence and expected time (days) are listed for a project o...
A: The critical path of a network is the longest time path through the network.
Q: Net income at year end will be understated if a. Insurance expense is not recognized b. Accrued inc...
A: (1) If Insurance expenses is not recognized : If it is not recognized then net income will be overst...
Q: On May 31, RDC Company had a cash balance per books of $13,022. The bank statement from City Bank on...
A: Bank reconciliation statement is represented in a tabular format, that shows the differences between...
Q: A serious exposure in the revenue cycle is customer dissatisfaction. What is the related threat and ...
A: In this question we tell about a serious exposure in the revenue cycle is customer dissatisfaction.W...
Q: Review of internal control system is very important for the auditor as the effectives of internal co...
A: Review of Internal Control is done by the auditor to check the extent of effectiveness of these inte...
Q: Miriam deposite an amount of php89632.37 from abc bank on the 7th birthday of her daughter that pays...
A: Interest is the amount which has been earned by the company or the depositor on the money which has ...
Q: Under the accrual basis of accounting, revenue is recorded O when earned and realizable O when earne...
A: (Note: Since you have posted multiple questions, we will solve the first question for you. For the r...
Q: ise in Petained earnings at the end of year 2? O Overstated O Understated O Cannot be determined fro...
A:
Q: Which of the following is not a counterbalancing error? Non-recognition of the unused portion of of...
A: Counterbalancing errors are those errors which will counter balance automatically in the next year. ...
Q: Question 4: Investments Please note that this question has two independent parts. Part 1: On January...
A:
Q: The accumulated benefit obligation measures __the shortest possible period for funding to maximize...
A: A pension plan refers to the plan that an individual or the company made for the future of their emp...
Q: A Bank granted a loan to a borrower in the amount of P5,000,000 on January 1, 2021, The interest rat...
A: Solution Carrying amount is the cost of an asset less accumulated depreciation.
Step by step
Solved in 2 steps
- Ana, Roro, Reiji, Rnold, Gina and Harold are wondering what form of business they are going to put up with their combined assets of P300,000. Based on the recommendation of Mr. E, an expert, the ideal for them is a corporation. With the recommendation in mind, they agreed to form a corporation named ARRRGH Company and executed its article of incorporation and submitted the same to mayor's office. After a year of operation, they suffered a big loss and decided to terminate their business and as of this date, ARRRGH Company has a total assets of P140,000 and has a liabilities of P190,000 respectively. Based on the preceding information, how much is the combined or consolidated liabilities that Ana, Roro, Reiji, Rnold, Gina and Harold will shoulderAna, Roro, Reiji, Rnold, Gina and Harold are wondering what form of business they are going to put up with their combined assets of P300,000. Based on the recommendation of Mr. E, an expert, the ideal for them is a corporation. With the recommendation in mind, they agreed to form a corporation named ARRRGH Company and executed its article of incorporation and submitted the same to mayor's office. After a year of operation, they suffered a big loss and decided to terminate their business and as of this date, ARRRGH Company has a total assets of P140,000 and has a liabilities of P190,000 respectively. Based on these information alone Based on the preceding , how much is the combined or consolidated liabilities that Ana, Roro, Reiji, Rnold, Gina and Harold will shoulderFor five years, Henry and James had been engaged as partners in building houses. They owned the equipment necessary to conduct the business and had an excellent reputation. In March, Joyce, who had previously been in the same kind of business, proposed that Henry, James, and Joyce form a corporation for the purpose of constructing medium-priced houses. They engaged attorney Portia, who did all the work required to incorporate the business under the name of Libra Corp. The certificate of incorporation authorized one thousand shares of $100 par value stock. At the organizational meeting of the incorporators, Henry, James, and Joyce were elected directors, and Libra Corp. issued a total of six hundred fifty shares for its stock. Henry and James each received two hundred shares in consideration of transferring to Libra Corp. the equipment and goodwill of their partnership, which had a combined value of more than $40,000. Joyce received two hundred shares in consideration for promising to…
- Todd and Elaine purchased for $300,000 a building that was used for manufacturing pianos. Then as promoters, they formed a new corporation and resold the building to the new corporation for $500,000 worth of stock. After discovering the actual purchase price paid by the promoters, the other shareholders desire to have $200,000 of the common stock canceled. Can they succeed in this action?Rondo and his business associate, Larry, are considering forming a business entity called R&L, but they are unsure about whether to form it as a C corporation, an S corporation, or an LLC taxed as a partnership for tax purposes. Rondo and Larry would each invest $200,000 in the business. Thus, each owner would take an initial basis in his ownership interest of $200,000 no matter which entity type is formed. Shortly after the formation of the entity, the business borrowed $60,000 from the bank. If applicable, this debt will be shared equally between the two owners. A. After taking the loan into account, what is Rondo's tax basis in his R&L stock if R&L is formed as a C corporation? B. After taking the loan into account, what is Rondo's tax basis in his R&L stock if R&L is formed as an S corporation? C. After taking the loan into account, what is Rondo's tax basis in his R&L stock if R&L is formed as an LLC and taxed as a partnership?The Controller was approached by some business colleagues about doing a Section 351 transaction for the formation of a new separate corporation. Big Corporation has a nice parcel of land that they bought for $10,000 but it is worth now $1,000,000. Big Corporation does not want to just sell it because that would be an immediate recognized gain of $990,000 on their tax return. But the Controller heard that if that land were contributed to the new corporation for stock in the new corporation worth $1,000,000, it would not be taxable. Can a Section 351 transaction defer the taxable income if that property is contributed?
- Jack, a geologist, had been debating for years whether or not to venture out on his own and operate his own business. He had developed a lot of solid relationships with clients, and he believed that many of them would follow him if he were to leave his current employer. As part of a New Year’s resolution, Jack decided he would finally do it. Jack put his business plan together, and, on January 1 of this year, Jack opened his doors for business as a C corporation called Geo-Jack (GJ). Jack is the sole shareholder. Jack reported the following financial information for the year (assume GJ reports on a calendar year, uses the accrual method of accounting, and elects to account for inventory). In January, GJ rented a small business office about 12 miles from Jack’s home. GJ paid $10,000, which represented a damage deposit of $4,000 and rent for two years ($3,000 annually). GJ earned and collected $290,000 performing geological-related services and selling its specialized digging tool. GJ…Harry and Ron are brothers who inherited a house from their mother several years ago. The house was included in mom’s estate at a value of $230,000 Two years ago, they decided to form a corporation to own the house (liability issues, you know) and they each contributed their 50% ownership in the house to this new corporation (HR Corporation) in exchange for 50% each of the newly issued common stock. At the date of the incorporation, the house was worth $300,000. Unfortunately for Harry and Ron, the housing bubble burst soon after incorporation and the value of the house fell all the way to $100,000. Ron decided he wanted to live in the house, so they decided to liquidate the corporation and return direct ownership to them both in equal shares. Ron will eventually buy out Harry’s half of the house. How much gain or loss will HR Corporation recognize and how much income or loss will Harry recognize? Group of answer choices ($200,000) and ($15,000) $0 and ($65,000) ($130,000) and…Jack Flubber, who owns Sons of Flubber Construction Co.,and runs it as a proprietorship, had gross profits last year of$80,000. His personal and family expenses are $52,000 andhe has $7,000 in exemptions and deductions. He paid$17,000 in taxes. If he paid himself a salary of $55,000taxed at 20%, would it be advantageous for him to incorporateas a closely held corporation? Explain.
- Three owners join together to form ABC, INC., which properly elects to be taxed as a C corporation. Shareholder A contributes cash of $10,000 and a collection of jewelry display cases to be placed in the jewelry store operated by the C corporation. The jewelry display cases have a basis in A’s hands of $112,000, and a fair market value of $81,000. B contributes $10,000 in cash and jewelry inventory having a basis in B’s hands of $35,000 and a fair market value of $81,000. C contributes inventory having a basis in C’s hands of $120,000 and a fair market value of $96,000. Since each of the three of them have agreed to be equal shareholders, it was determined that it was fair to distributed $5,000 in cash to Shareholder C because her initial contribution had a fair market value of $5,000 more than the contribution of either A or B. What is the balance in A’s capital account immediately following her contribution?Three owners join together to form ABC, INC., which properly elects to be taxed as a C corporation. Shareholder A contributes cash of $10,000 and a collection of jewelry display cases to be placed in the jewelry store operated by the C corporation. The jewelry display cases have a basis in A’s hands of $112,000, and a fair market value of $81,000. B contributes $10,000 in cash and jewelry inventory having a basis in B’s hands of $35,000 and a fair market value of $81,000. C contributes inventory having a basis in C’s hands of $120,000 and a fair market value of $96,000. Since each of the three of them have agreed to be equal shareholders, it was determined that it was fair to distributed $5,000 in cash to Shareholder C because her initial contribution had a fair market value of $5,000 more than the contribution of either A or B. What is the balance in B’s capital account immediately following his contribution?. Leni was an incorporator in Dilaw Corporation (Dilaw for brevity), a corporation which Leni and her friends incorporated for the purpose of engaging in the call-center business. Leni invested P1 million as paid-up capital in Dilaw. After incorporation, Dilaw obtained a 10-year P5 million peso loan from Citibank. As security for the loan, Dilaw executed a real estate mortgage in favor of Citibank over its parcel of land in Dagupan City. Dilaw’s business did not prosper and it sustained heavy losses within 3 years from its incorporation. Leni wants the corporation to return her P1 million investment. The other stockholders have no objection to returning Leni’s investment to her. May the corporation return Leni’s investment to her? Explain. pls help me, thank youu