Brave Company maintains a branch in Davao City and makes inventory shipment to its branch at 20% above cost. Selected balances taken from the books of Home Office and Branch as of December 31, 2021 are as follows (see image below). P24,350 of the branch’s ending inventory came from outside suppliers. 1. How much is the Allowance for Overvaluation after adjustment?
Q: As of December 31, 2022, its first year of operations, Batangas Company had taxable temporary…
A: Deferred Tax A deferred tax liability is described under IAS 12 as the amount of income tax due in…
Q: What is the depreciation deduction, using 200% DB method, after year 2 for an asset that costs…
A: The full form of DDB is Double declining balance method. The DDB method is a depreciation method. In…
Q: Journalize the following transaction: Mar. 1 Received a 60-day, note for $24, 000 dated…
A: A journal entry is the act of recording any transaction, whether one that is commercial or not. An…
Q: 1. 2. 3. 4. 5. 6. Accounts receivable decreased by $15.400 during the year. Inventory increased by…
A: Cash flows statement is one of the financial statement which shows all cash inflows and cash…
Q: Drew Company’s predetermined overhead rate for 2022 is $12.00 per direct labor hour. Drew’s actual…
A: Calculate the amount of any overapplied or underapplied overhead in July:- Underapplied overhead =…
Q: In preparing a Master Budget, the starting point and the first budget to be prepared is usually the…
A: The production budget is related to the estimated units to be manufactured or produced considering…
Q: Required Information [The following information applies to the questions displayed below.] Simon…
A: Current ratio and Acid test ratios are two liquidity ratios being used in business. These help in…
Q: Compute the cost of ending inventory for the best selling purse based on the following:
A: Special Identification Method: The Specific identification method identifies the cost of each item…
Q: You are saving for a Porsche Carrera Cabriolet, which currently sells for nearly half a million…
A: Future Value :— It is the value of present cash flow in future. Future Value = Present Value ×…
Q: When a bond is held with the objective of collecting principal and interest payments over the life…
A: As per IFRS 9, Financial instruments Standard The Financial assets can be classified at Amortized…
Q: Li Company uses a sales journal, purchases journal, cash receipts journal, cash payments journal,…
A: The cash receipts journal follows the basic rule of accounting, which states that you should debit…
Q: __________ considers the impact of changing one or more inputs or assumptions on the resulting…
A: Capital budgeting is one of the important process of financial management. By this procedure,…
Q: 1. How much is the Franchise Revenue to be recognized in 2021? 2. How much is the Revenue to be…
A: As per revenue recognition principle, revenue is recognized only when it is realized and earned. The…
Q: Problem 21-1A (Algo) Preparing and analyzing a flexible budget LO P1 Required: 1&2. Prepare flexible…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: QUESTION 3 Khalish is the auditor of Bright Bhd. preparing the final audit for the year ended 30…
A: A management representation statement or letter seems to be a type of letter produced by an…
Q: What is meant by owners’ equity?
A: Owner's Equity is the amount contributed to the business by the owners with no obligation of…
Q: What is the firm's net income in the current year? (5547.00?) What is the firm's dividend…
A: Profits earned by the Companies is transferred to the Retained Earning Account. Retained Earnings…
Q: Milano Gallery purchases the copyright on a painting for $480,000 on January 1. The copyright is…
A: Introduction: A journal entry is used to record a business deal in the company's accounting records.…
Q: On June 1, 2021, Dirty Harry Co. borrowed cash by issuing a 6-month noninterest-bearing note with a…
A: Carrying value of note on June 1, 2021 is = Face/Maturity value of note - Discount on note
Q: Sales (3,100 units) Cost of goods sold: Cost of goods manufactured (3,700 units) Inventory, April 30…
A: The income statement can be prepared using various methods as variable costing and absorption…
Q: 1. Prepare an income statement for the year ending 2021 for Global Trading 2. Prepare the balance…
A: Income statement is one of the financial statement which shows all incomes and all expenses of the…
Q: product sells for P60 per unit and has a CM ratio of 40%. The company's fixed expenses are P360,000…
A: The break-even point is the point at which there is neither profit nor loss. That means, how many…
Q: View Policies Current Attempt in Progress Culver Company is preparing its direct labor budget for…
A: Introduction: The direct labor budget is used to calculate the number of work hours needed to…
Q: What events create permanent differences between accounting income and taxable income? What effect…
A: Introduction: Accounting income is profit calculated using the accrual method of accounting.…
Q: Prepare a budgeted balance sheet at the end of March. HINT-You will need to include net income in…
A: Budgeting is a technique by which a Business Entity Estimates its expected revenues and losses.…
Q: st basis of $30,000 and a fair value of $90,000. Fields is to receive an annuity of $6,000 each year…
A: Journal entries refer to those entries that involve the daily transactions or events of a company…
Q: ! a) Tax FUTA SUTA b) Tax Required information [The following information applies to the questions…
A: Introduction: A tax is a mandatory fee or financial charge imposed by the government on an…
Q: Milano Pizza is a small neighborhood pizzeria that has a small area for in-store dining as well as…
A: The variance seems to be the difference between the actual and budgeted results within the budgetary…
Q: Colada Quest Games Inc. adjusts its accounts annually. The following information is available for…
A: Adjustment entries: Adjustment entries can be made at the end of period or each month or according…
Q: Hair-raising Hats has three lines of hats: baseball, winter, and fashion. On May 18, 2020,…
A: Sales for the period: $780,000 Beginning Inventory at cost: $97,000 Beginning Inventory at retail:…
Q: o ensure that appropriate recognition criteria and measurement bases are applied to provisions,…
A: A Provision has to be recognise when There is present obligations due to the past event which has…
Q: On October 31, 2021, Flowing Wind Company issued a $3,500,000, 10-year bond at 7% when the market…
A: Note: Hi! Thank you for the question, As per the honor code, we are allowed to answer three…
Q: Required: 1. Give the entry to record the receipt of the down payment, and the succeeding payment on…
A: Revenue Recognition Revenue recognition specifies the particular circumstances under which revenue…
Q: Preble Company manufactures one product. Its variable manufacturing overhead is applied to…
A: Any organization, success's most important tool is a cost or revenue forecast. During the…
Q: Sadie Hawkins owns The Education Supply Center, a small store that sells educational supplies.…
A: Balance sheet is the financial statement which is prepared to know the financial position of an…
Q: What is the unearned interest income on January 1, 2022?
A: Given in the question: Lease term (in Years) 8 Annual Rental Payable in advance 767600…
Q: The Gourmand Cooking School runs short cooking courses at its small campus. Management has…
A: A flexible budget is a kind of budget that can be changed multiple times if the revenue or expenses…
Q: Accurate Company charges its new franchisees an initial franchise fee of P2,500,000. Of this amount,…
A: For the purpose of revenue recognition, the accountants or professional auditors follows their…
Q: For the pay period of 11/16 to 11/30 what would his regular and overtime hours be in the payroll…
A: Exempt employees are defined as employees that are generally exempt or not paid an hourly rate or…
Q: Use the following to describe the order of the steps in the Accounting Cycle. Prompts Submitted…
A: Answer:- Accounting cycle meaning:- Accounting cycle is basically a process which is designed to…
Q: Asap Operational auditing has grown in importance over the last few decades a . Define operational…
A: Auditing - The term audit comes from the Latin word "audire," which means "to hear." Account…
Q: Corporation BBB, a public company, give you the following Financial Information for this year: ($)…
A: Rental Profit: $10,000 Taxable Capital Gains: $30,000 Net Capital Loss Carry Forward: $20,000
Q: Current Assets .. Non-Current Assets Total Assets Current Liabilities Non-Current Liabilities…
A: Financial statement analysis is performed by the management accountants of an entity to check the…
Q: Co. bought a patent from Backo Corp. on January 1, 20x4, for ₱180,000. An independent consultant…
A: The patents have useful economic life and they are amortized over the period of economic life and…
Q: Cool Beans is a locally owned coffeeshop that competes with two large coffee chains, Planet Euro and…
A: Cost estimate seems to be important for every project or program in order to accomplish the project…
Q: Austin, Inc. manufactures model airplane kits and projects production at 150, 450, 250, and 300 kits…
A: Direct material budget :— This budget is prepared to estimate the units of raw materials needed for…
Q: Activity a b с e Predecessor a с b&c Duration (weeks) 2 3 3 4 5 Budget $ 300 200 250 650 420 Actual…
A: Answer - Step 1 - Calculation of Actual cost of work performed (ACWP) = 400+180+315+300+280 = $…
Q: When a company issues 27,000 shares of $2 par value common stock for $20 per share, the journal…
A: A company can issue its share at par, premium or discount. When the share is issued at premium, then…
Q: The Superior Print Limited is a printing firm and do provide other stationery services to its…
A: Horizontal analysis and vertical analysis are methods for analyzing the performance of companies.…
Q: How about these questions: 1. How much is the balance of Account Receivable at December 31, 2021?…
A: Following is the answer of two questions.
Brave Company maintains a branch in Davao City and makes inventory shipment to its branch at 20% above cost. Selected balances taken from the books of Home Office and Branch as of December 31, 2021 are as follows (see image below). P24,350 of the branch’s ending inventory came from outside suppliers.
1. How much is the Allowance for Overvaluation after adjustment?
Step by step
Solved in 2 steps
- Distressed Corporation is undergoing liquidation. Relevant information as of January 1, 20x1 is shown below:ASSETSCarryingAmountNet RealizableValueCash P250,000 P300,000Accounts Receivable 150,000 355,649Equipment-net 600,000 200,000Land 1,700,000 1,500,000TOTAL ASSETS P2,700,000 P2,355,649LIABILITIESCarryingAmountSettlementAmountAccounts Payable P1,000,000 P1,000,000Salaries Payable 500,000 500,000Notes Payable 800,000 805,234Loan Payable 800,000 800,000TOTAL LIABILITIES P3,100,000 P3,105,234EQUITYShare Capital P1,600,000Retained Earnings (2,000,000)Capital Deficiency (400,000)TOTAL LIABILITIES & EQUITY P2,700,000Additional Information:• Administrative expenses amounting to P180,744 are expected to be incurred during the liquidationprocess.• The equipment is pledged to the loan payable.• The land is pledged to the notes payable.QUESTIONS:1. How much are the total free assets? _____________2. How much are the unsecured liabilities with priority? _____________3. How much are the…Distressed Corporation is undergoing liquidation. Relevant information as of January 1, 20x1 is shown below:ASSETSCarrying AmountNet Realizable ValueCash P250,000 P300,000Accounts Receivable 150,000 355,649Equipment-net 600,000 200,000Land 1,700,000 1,500,000TOTAL ASSETS P2,700,000 P2,355,649LIABILITIESCarrying AmountSettlement AmountAccounts Payable P1,000,000 P1,000,000Salaries Payable 500,000 500,000Notes Payable 800,000 805,234Loan Payable 800,000 800,000TOTAL LIABILITIES P3,100,000 P3,105,234EQUITYShare Capital P1,600,000Retained Earnings (2,000,000)Capital Deficiency (400,000)TOTAL LIABILITIES & EQUITY P2,700,000Additional Information:• Administrative expenses amounting to P180,744 are expected to be incurred during the liquidation process.• The equipment is pledged to the loan payable.• The land is pledged to the notes payable.QUESTIONS:1. How much are the total free assets? _____________2. How much are the unsecured liabilities with priority? _____________3. How much are…Distressed Corporation is undergoing liquidation. Relevant information as of January 1, 20x1 is shown below:ASSETSCarrying AmountNet Realizable ValueCash P250,000 P300,000Accounts Receivable 150,000 355,649Equipment-net 600,000 200,000Land 1,700,000 1,500,000TOTAL ASSETS P2,700,000 P2,355,649LIABILITIESCarrying AmountSettlement AmountAccounts Payable P1,000,000 P1,000,000Salaries Payable 500,000 500,000Notes Payable 800,000 805,234Loan Payable 800,000 800,000TOTAL LIABILITIES P3,100,000 P3,105,234EQUITYShare Capital P1,600,000Retained Earnings (2,000,000)Capital Deficiency (400,000)TOTAL LIABILITIES & EQUITY P2,700,000Additional Information:• Administrative expenses amounting to P180,744 are expected to be incurred during the liquidation process.• The equipment is pledged to the loan payable.• The land is pledged to the notes payable. QUESTIONS: 7. What is the amount paid to unsecured creditors without priority? _____________8. What is the amount paid to partially secured…
- Distressed Corporation is undergoing liquidation. Relevant information as of January 1, 20x1 is shown below:ASSETSCarrying AmountNet Realizable ValueCash P250,000 P300,000Accounts Receivable 150,000 355,649Equipment-net 600,000 200,000Land 1,700,000 1,500,000TOTAL ASSETS P2,700,000 P2,355,649LIABILITIESCarrying AmountSettlement AmountAccounts Payable P1,000,000 P1,000,000Salaries Payable 500,000 500,000Notes Payable 800,000 805,234Loan Payable 800,000 800,000TOTAL LIABILITIES P3,100,000 P3,105,234EQUITYShare Capital P1,600,000Retained Earnings (2,000,000)Capital Deficiency (400,000)TOTAL LIABILITIES & EQUITY P2,700,000Additional Information:• Administrative expenses amounting to P180,744 are expected to be incurred during the liquidation process.• The equipment is pledged to the loan payable.• The land is pledged to the notes payable. QUESTIONS: 4. How much are the net free assets? _____________5. What is the estimated deficiency? _____________6. What is the estimated recovery…E. An entity reported the following assets and liabilities at year-end: Carrying Amount Tax BaseProperty 10,000,000 7,000,000Plant and equipment 5,000,000 4,000,000Inventory 3,000,000 4,000,000Accounts receivable 2,500,000 3,000,000Liabilities 6,000,000 5,500,000The entity had made a provision for inventory obsolescence of P1,000,000. Further, an impairment loss against accounts receivable of P500,000 has been made. The tax rate is 25%.1. What amount should be reported as deferred tax liability?2. What amount should be reported as deferred tax asset?Refer to the following data of SG Company: Assets to be realized1,375,000Liabilities liquidated1,875,000Assets acquired825,000Liabilities not liquidated1,700,000Assets realized1,200,000Liabilities to be liquidated2,250,000Assets not realized1,375,000Supplementary charges3,125,000Liabilities assumed1,625,000Supplementary credits2,800,000Compute the beginning cash balance assuming that the ending balance of ordinary share and retained earnings are P1,200,000 and (400,000), respectively.
- Refer to the following data of SG Company: Assets to be realized1,375,000Liabilities liquidated1,875,000Assets acquired825,000Liabilities not liquidated1,700,000Assets realized1,200,000Liabilities to be liquidated2,250,000Assets not realized1,375,000Supplementary charges3,125,000Liabilities assumed1,625,000Supplementary credits2,800,000Compute the beginning cash balance assuming that the ending balance of ordinary share and retained earnings are P1,200,000 and (400,000), respectively.A. P1,325,000b. P1,475,000c. P2,075,000d. P1,450,000The general ledger of Sunland Corporation as of December 31, 2021, includes the following accounts: Copyrights $ 56000 Deposits with advertising agency (will be used to promote goodwill) 33000 Discount on bonds payable 76000 Excess of cost over fair value of identifiable net assets of Acquired subsidiary 540000 Trademarks 71000 In the preparation of Sunland's balance sheet as of December 31, 2021, what should be reported as total intangible assets? $644000. $611000. $667000. $700000.An entity accounts for non-current assets using the revaluation model. On 30 June 2020, the entity classified two items of non-current assets as held for sale in accordance with PFRS5. The following information relates to these assets: Asset 1 Asset 2 Carrying amount before classification as held for sale P400,000 P300,000 Revaluation surplus before classification as held for sale 60,000 30,000 Fair value, 30 June 2020 450,000 260,000 Estimated costs to sell 20,000 12,000 The balance of revaluation surplus as of 30 June 2020 after classification of the assets as held for sale is
- An entity accounts for non-current assets using the revaluation model. On 30 June 2020, the entity classified two items of non-current assets as held for sale in accordance with PFRS5. The following information relates to these assets: Asset 1 Asset 2 Carrying amount before classification as held for sale P400,000 P300,000 Revaluation surplus before classification as held for sale 60,000 30,000 Fair value, 30 June 2020 450,000 260,000 Estimated costs to sell 20,000 12,000 The total expense to be recognized in profit or loss related to these assets isPC uses the installment method of income recognition. The entity provided the following pertinent data: 20x1 20x2 20x3 Installment sales P600,000 P750,000 P720,000 Cost of goods sold 450,000 570,000 504,000 Balance of deferred gross profit at year-end 20x1 105,000 30,000 - 20x2 108,000 18,000 20x3 144,000 COMPUTE Total balance of Installment Receivable on December 31, 20x31. The following information is from Direct to You Corp.’s (DYC) financial records for its year ended December 31, 2020: Select statement of financial position information: 2020 2019 Investments in financial assets (at fair value through profit or loss [FVPL]) 12,000 10,000 Inventory 575,000 498,000 Property, plant, and equipment (PPE) 1,984,000 1,396,000 Less: accumulated depreciation (650,400) (487,000) Copyright 126,000 135,000 Patents 564,000 417,000 Select statement of comprehensive income information: Depreciation of property, plant, and equipment (334,400) Amortization of patents (65,000) Interest expense (75,000) Impairment loss — copyright (9,000) Gain on sale of PPE 23,000 Additional information: PPE that originally cost $570,000 was sold during the year. 100,000 common shares were issued in 2020 to acquire $450,000 of property, plant, and equipment. DYC is subject to IFRS. What amount of net cash used…