arks Inc. had recently completed construction of a new manufactu
Q: Sunland Care centers Inc. provides financing and capital to the healthcare industry, with a particul...
A: A bond is borrowing security issued by the company to raise funds from the market by making an agree...
Q: Question 8 Smitz Spa is preparing its opening IFRS statement of financial position on January 1, 202...
A: Hi student Since there are multiple questions, we will answer only first question.
Q: What is the effect of omission of prepaid expense in retained earnings at the end of year 2? a. Can...
A: A basic Accounting equation is given as under; Assets = Equity + Liabilities Meaning, Total As...
Q: Bandar Industries manufactures sporting equipment. One of the company's products is a football helme...
A: Hi student, Since there are multiple subparts, we will answer only first three subparts.
Q: (1) Services performed but unbilled and uncollected at July 31 were $1,840. (2) Depreciation on equi...
A: The adjustment entries are prepared at end of period. These entries are prepared to adjust the reven...
Q: What is the effect of omission of accrued expenses in expenses during year 2 after the year of error...
A: Answer) The correct Option is UNDERSTATED Justifications: If the accrued expenses for year 1 are not...
Q: Three partners A R and C shared the profit in a software busin
A: The meaning of partnership business is two or more persons bringing the capital to form the business...
Q: ng order: First, Ta is to receive 10% of net income up to P100,000 and 20% over P100,000, Second, Li...
A: Partnership refers to the legal form of agreement between two or more entities who mutually decide t...
Q: 1) A Dutch petroleum company purchased a barge for $1,300,000. The estimated life in 20 years, at wh...
A: Comment: We’ll answer the first question since the exact one wasn’t specified. Please submit a new q...
Q: 17. AAA Inc. produces three products. Production and cost information is as follows: Model Y Model O...
A: Activity based costing means where the product is valued on the basis of actual direct material , di...
Q: 1. How many shares should the company have outstanding in 2012 if its earnings available for common ...
A: Earning Available to Common Stockholder $ 12,00,000 Dividend Payout Ratio 40% Divid...
Q: If some activity creates positive externalities as well as private benefits, then economic theory su...
A: An externality is benefit or cost that affects someone who is not directly involved in the productio...
Q: On December 31, 2025, the “Receivables” account of AA. Company show a debit balance of P5,950,000 Su...
A: Loans and receivables are the amounts that are the asset of the company realizable within 12 months ...
Q: In 2010 Casey made a taxable gift of $5.7 million to both Stephanie and Linda (a total of $11.4 mill...
A: A gift tax is referred to as that tax that is imposed on cash or assets given by one person or corpo...
Q: & Co. Sends cheque for the balance due. Show the journal entries and Nathan & Co. Godown Rent. Natha...
A: Solution A journal is a company's official book in which all business transactions are recorded in c...
Q: The payment of supplier’s account is debited to accounts receivable. What is the effect of the error...
A: The Account Receivables are assets for the firm and Account Payables are liability for the firm. The...
Q: 6. Gan and Da are partners who share profits and losses in the ratio of 60% : 40%, respectively. Ga...
A: Facts of the case :- Gan & Da shares profits and losses in the r...
Q: Milan Company reported pretax income of P 6,500,000 on December 31, 2021. During your audit, the fol...
A: To obtain correct pretax income we have to make adjustment of following expenses and incomes : 1. ...
Q: EXERCISE 2.1 Make the TABLE to show the division of net income/net loss and give the CLOSING ENTRIES...
A: A partnership firm refers to where the partners do business and share the profit and losses that are...
Q: it in 84 se cars are lc
A: Given that one car makes a complete circuit in 84 seconds and the other car in 60 seconds. We have t...
Q: Robertson Company had purchased an equipment on January 1, 2019 for P 4,800,000. The entity used the...
A: Depreciation is the amount of expense which is shown in the income statement to show the decrease in...
Q: A farmer sows a certain crop. It costs $240,000 to buy the seed, prepare the ground, and sow the cro...
A: In this question , there is a farmer sow certain crops and we calculate net present value (NPA) in p...
Q: Depreciation of equipment during 2021 was overstated by P 16,000. What would be the adjusting entry ...
A: An adjusting journal entry is a journal entry made in a company's general ledger at the end of an ac...
Q: a. This year Casey made a taxable gift of $1 million to Stephanie. Casey is not married, and the 201...
A: Solution:- Given, Casey made a taxable gift = $5.7 million to both Stephanie and Linda Total taxable...
Q: Based on the account balances below, what is the total of the debit and credit columns of the adjust...
A: An adjusted trial balance is a compilation of the ending balances in all accounts after the adjustin...
Q: Required: 1. Compute the following variances for July: (Indicate the effect of each variance by sele...
A: Solution:- Given, Dawson Toys, Ltd., produces a toy called the Maze Direct materials = 8 microns per...
Q: The preliminary assessment of control risk includes all the following procedures except: Consider th...
A: Ans. Control risk is mainly about loopholes in designing or failure of controls that are not able to...
Q: Happy Trails has the following information for its manufacturing: Direct Materials $16 Direct Labor...
A: A variable costing income statement subtracts all variable costs from revenue to get at a separately...
Q: Cullumber Company owns delivery equipment that cost $53,800 and has accumulated depreciation of $27,...
A: Disclaimer: “Since you have posted a question with multiple sub-parts, we will solve first three sub...
Q: Lablanc Inc. sells a product for $93 per unit. The variable cost is $45 per unit, while fixed costs ...
A: Solution:- a) calculation of the break-even point in sales units as follows under:- break-even point...
Q: What is the effect of the error in the net income of the current period and in subsequent period?
A: Payment made to supplier is debited for decrease in balance as accounts payable which is liability w...
Q: The following statements are correct except a.Under the allowance method, estimated losses from un...
A: Allowance method is the method for recording the estimation of uncollectible receivables. It kept as...
Q: $4,775.68
A: The after tax income of an individual is calculated by deducting the paid taxes from the income for ...
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: Use the following information from financial statements of Hamilton Inc. Information from Balance Sh...
A: Cash is referred as the most liquid asset an organization or a company can have. It is considered to...
Q: Rebecca and Irving incur the following medical expenses during 2020: Medical insurance premiums $4,5...
A: GIVEN Rebecca and Irving incur the following medical expenses during 2020: Medical insura...
Q: non-deductible SEC penalty. is 21%. Calculate the effective calculations.
A: Book Income before Tax $ 420,000 Municipal Interest $ 30,000 Non deducti...
Q: Sarasota Corp.'s gross payroll for April is $50,300. The company deducted $2,217 for CPP, $1,073 for...
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in...
Q: A company purchased machinery on December 31, 2026, paying P80,000 down and agreeing to pay the bala...
A: Carrying amount of the note = Present value of annual installments where, Present value of annual i...
Q: OI March 1, 2021, Remy Corporation issued $1,000,000 of 8% nonconvertible bonds at 104, which are du...
A: Paid-in capital is the money a company has received from investors in return for issuing stock. Pa...
Q: Teague Co. reports the following data: Sales $489,300 Variable costs 278,900 Contribution margi...
A: Solution Formula = Operating leverage = Contribution margin / Operating income.
Q: Lens Junction sells lenses for $46 each and is estimating sales of 14,000 units in January and 19,00...
A: "Since you have posted a question with multiple sub parts, we will solve first three sub parts for y...
Q: The selling and administrative expense budget of Ruffing Corporation is based on budgeted unit sales...
A: The cash budget is prepared to record the cash transactions incurred during the period.
Q: On December 31, 2021, the fair value was estimated at On June 30, 2021, the fair value was estimated...
A: The carrying amount is the original cost of an asset as represented in a company's books or balance ...
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: Gregor's Gewgaws provides the following income statement information for this fiscal year: Revenues ...
A: Return on investment is one of the profitability ratio which shows how much net income has been earn...
Q: Standards deals with the principles and methods of determining depreciation and amortization cost: C...
A: CAS (Cost Accounting standards) are set of standards used for determining cost of goods manufactured...
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: onth of sale, 30% in the month following sale, and 15% in the secon le. The remainder is uncollectib...
A: Calculation of Cash Receipt for the month of April. In the month of April, the cash receipt pattern ...
Q: In 2010 Casey made a taxable gift of $5.7 million to both Stephanie and Linda (a total of $11.4 mill...
A: Casey made a taxable gift = $5.7 million to both Stephanie and Linda Total taxable gifts = $11.4
Step by step
Solved in 2 steps with 1 images
- In November 20X2, an entity contracts with a customer to refurbish a 3-storey building and install new elevators for a total consideration of ₱5,000,000. The promised refurbishment service, including the installation of elevators, is a single performance obligation satisfied over time. Total expected costs are ₱4,000,000, including ₱1,500,000 for the elevators. The entity determines that it acts as a principal because it obtains control of the elevators before they are transferred to the customer. A summary of the transaction price and expected costs is as follows: Transaction price ₱5,000,000 Expected costs: Elevators ₱1,500,000 Other costs 2,500,000 Total expected costs ₱4,000,000 The entity uses an input method based on costs incurred to measure its…Rex's Reclaimers entered into a contract with Dan's Demolition to manage the processing of recycled materials on Dan's various demolition projects. Services for the 3-year contract include collecting, sorting, and transporting reclaimed materials to recycling centers or contractors who will reuse them. Rex's incurs selling commission costs of $2,000 to obtain the contract. Before performing the services, Rex's also designs and builds receptacles and loading equipment that interfaces with Dan's demolition equipment at a cost of $27,000. These receptacles and equipment are retained by Rex's and can be used for other projects. Dan's promises to pay a fixed fee of $12,000 per year, payable every 6 months for the services under the contract. Rex's incurs the following costs: design services for the receptacles to interface with Dan's equipment $3,000, loading equipment controllers $6,000, and special testing and OSHA inspection fees $2,000 (some of Dan's projects are on government…Rex's Reclaimers entered into a contract with Dan's Demolition to manage the processing of recycled materials on Dan's various demolition projects. Services for the 3-year contract include collecting, sorting, and transporting reclaimed materials to recycling centers or contractors who will reuse them. Rex's incurs selling commission costs of $2,000 to obtain the contract. Before performing the services, Rex's also designs and builds receptacles and loading equipment that interfaces with Dan's demolition equipment at a cost of $27,000. These receptacles and equipment are retained by Rex's and can be used for other projects. Dan's promises to pay a fixed fee of $12,000 per year, payable every 6 months for the services under the contract. Rex's incurs the following costs: design services for the receptacles to interface with Dan's equipment $3,000, loading equipment controllers $6,000, and special testing and OSHA inspection fees $2,000 (some of Dan's projects are on government…
- A company is constructing a new production facility. The following costs have been incurred: Site preparation costs $50,000 Architects’ fees $26,000 Legal fees $10,000 Purchase of site $200,000 Costs incurred to relocate employees to the new facility $30,000 Administration costs $50,000 Total costs $366,000 The architects’ fees relate to the design of the new facility and the legal fees relate to legal advice received on the contract to purchase the site. The total value that should be recognized as Property, Plant and Equipment for the new facility should be Question 10Answer a. $ 314,000 b. $ 324,000 c. $ 344,000 d. $ 286,000During the fiscal year, ABC Company incurred the following costs related to property, plant and equipment: Amount paid to the contractor for the building constructed 12,000,000Building permit fee 120,000Excavation cost 110,000Architect fee 440,000Interest that would have been earned had the money used during theperiod of construction been invested in the money market 330,000Invoice cost of machine acquired, terms 8/10, n/30 6,500,000Freight, unloading and delivery charges for machine acquired 100,000Custom duties and other charges 270,000Allowance and hotel accommodation, paid to foreign techniciansduring installation and test run of machine 520,000Royalty payment on machines purchased (based on units producedand sold) 240,000Cash paid for the purchase of land (none was allocated to oldbuilding) 10,000,000Mortgage assumed on the land purchased 2,000,000Realtor’s commission 650,000Legal fees, realty taxes and documentation expenses 900,000Amount paid to relocate persons squatting on the…Shantal Company is installing a new equipment and incurred the following costs: Cost of equipment per supplier’s invoice 2,500,000 Initial delivery and handling cost 200,000 Cost of site preparation 600,000 Consultants used for advance on the acquisition of equipment 700,000 Interest charged paid to supplier for deferred credit 200,000 Estimated dismantling cost to be incurred as required by contract 300,000 Operating losses before commercial production 400,000 Group of answer choices 4,300,000 4,000,000 4,200,000 4,500,000
- Allen International, Inc., manufactures chemicals. It needs to acquire a new piece of production equipment to work on production for a large order that Allen has received. The order is for a period of three years, and atthe end of that time the machine would be sold. Allen has received two supplier quotations, both of which will provide the required service. Quotation I has a first cost of $180,000 and an estimated salvage value of$50,000 at the end of three years. Its cost for operation and maintenance is estimated at $28,000 per year. Quotation II has a first cost of $200,000 and an estimated salvage value of $60,000 at the end of three years. Its cost for operation and maintenance is estimated at $17,000 per year. The company pays income tax at a rate of 40% on ordinary income and 28% on depreciation recovery. The machine will be depreciated using MACRS-GDS (asset class 28.0). Allen uses an after-tax MARR of 12% for economic analysis, and it plans to accept whichever of these two…DJ Builders Company began operations on January 1, 2008. During the year, DJ Builders Company entered into a contract with Joey Company to construct a manufacturing facility. At that time, DJ Builders estimated that it would take five years to complete the facility at a total cost of P 4,800,000. The contract price for construction of the facility is P 5,800,000. During 2008, DJ Builders incurred P 1,250,000 in construction costs related to the project because of rising material and labor costs, the estimated cost to complete the contract at the end of 2008 is P 3,750,000. Joey Company was billed for and paid 30% of the contract price in accordance with the contract agreement. It is further agreed, that any costs incurred is expected to be recoverable. Compute the amount of construction in progress (net) – due from customers or progress billings (net) – due to customers: (Zero profit approach) Percentage of Completion…Tullis Construction enters into a long-term fixed price contract to build an office tower for $10,200,000. In the first year of the contract Tullis incurs $3,000,000 of cost and the engineers determined that the remaining costs to complete the project are $5,000,000. Tullis billed $4,000,000 in year 1 and collected $3,200,000 by the end of the end of the year. How should Tullis report Construction in Progress and Billings on Construction in Progress at the end of year 1 on the balance sheet assuming the use of the completed-contract method?
- On September 1, 20x1, ABC Co. enters into a contract with a customer to remodel a plant's electrical wirings and install a new generator for a total consideration of P12. The remodeling and the installation are treated as a single performance obligation satisfied over time. The expected contracts costs are as follows: Generator 4,000,000 Other costs 5,000,000 Expected total contract costs 9,000,000 Additional information: ABC Co. uses the cost-to-cost method in measuring its progress towards the complete satisfaction of the performance obligation. ABC Co. incurs total costs of P6,000,000 in 20x1, including the cost of the generator. The customer obtains control of the generator when it is delivered to the site in December 20x1. However, the generator will not be installed until March 20x2. ABC Co. regards the cost of the generator as significant in…. DAFFODIL Company had the following transactions pertaining to its new office building: Purchase price of land -₱1,200,000; Legal fees for contracts to purchase land -₱140,000; Architect's fee -₱256,000; Demolition of old building on site -₱315,000; Sale of scrap from old building -₱71,000; Construction cost of new building (fully completed) -₱2,450,000; Fire insurance policy on the newly constructed building for the whole year starting on the day it was completed -₱250,000. At what amount should the building be shown in DAFFODIL's statement of financial position of?Rona Company provided the following charges to the “repair and maintenance account”. Service contract on office equipment 100,000 Initial design fee for proposed extension of office building 150,000 New condenser for central air conditioning unit 10,000 Purchase of executive chairs and desks 200,000 Purchase of storm windows and screens and their installation all office windows 500,000 Sealing of roof leaks in production area 80,000 Replacement of door to production area 50,000 Installation of automatic door-opening system 200,000 Overhead crane for assembly department to speed up production 350,000 Replacement of broken gear on machine , 60,000 what total amount of expenditure should be capitalized? a. 1,500,000 b.1,410,000 c 1,400,000 d. 1,200,000