ecessary journa
Q: A permanent steel building used for the overhaul of dewatering systems (engines, pumps, and…
A: Given information is: A permanent steel building used for the overhaul of dewatering systems…
Q: During the year, Agency XYZ entered into a contract with a third party for the construction of a new…
A: Solution : Calculation of cost of the building Total initial contract price 14,500,000…
Q: The following costs were incurred by HEHE, Inc.. during 2020: July 1 Organization fees P120,000…
A: As per the capitalized of fixed assets concept, all costs that are incurred for purchase of fixed…
Q: The following costs were incurred by ABCDEFGH, Inc.. during 2020: July 1 Organization fees…
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Q: On March 31, 2021, Susquehanna Insurance purchased an office building for $12,000,000. Based on…
A: Purchase Price of office building(including land)= $12000000 Price allocated between building &…
Q: On December 1, B Company purchased a 4,000,000 tract of land for a factory site. The entity razed…
A: Carrying value of asset is the net balance of asset which is left after making all adjustments…
Q: The Italian Bread Company purchased land as a factory site for $70,000. An old building on the…
A: Land and building are fixed assets which will be disclosed in the balance sheet. Building will be…
Q: Harshman Company constructed a building for its own use. The company incurred costs of $40,000 for…
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Q: Wenner Furnace corp. purchased machinery for $279,000 on may 1, 2012. it is estimated that it will…
A: Calculate the annual depreciation under straight-line method.
Q: On January 1, 20x1, Horror Co. acquired a building costing ₱1,200,000. Professional fees for legal…
A: Investment property is the property which is held by the company to earn from it. The earnings from…
Q: Amount paid to the contractor for the building constructed P13,000,000 Building permit fee 120,000…
A: 1. Statement showing the cost of the land that should be capitalized: Particulars Amount(P)…
Q: On March 31, 2021, Susquehanna Insurance purchased an office building for $12,000,000. Based on…
A: Depreciation is a way to reduce the cost of asset over a period of time due to usage, wear &…
Q: DAFFODIL Company had the following transactions pertaining to its new office building: Purchase…
A: The asset is considered as an investment that an investor made in land, stock or something that…
Q: A permanent steel building used for the overhaul of dewatering systems (engines, pumps, and…
A: The MACRS-GDS property class for permanent steel building dewatering system is 20 years.
Q: During the year just ended, Morton Company made the following expenditures relating to its plant…
A: Any amount spent on repairs and maintenance that does not add/increase the value of the asset should…
Q: Charles Corp. purchased a new machine for its factory. The following lists shows the various…
A: Capitalized cost of the machine Particulars Amount Base purchase price $40,000 Sales tax…
Q: At the beginning of the year, Almond Factory bought three used machines. The machines immediately…
A: Introduction: Depreciation is an accounting method for allocating the cost of a tangible or physical…
Q: Bill's Wrecker Service has just completed a minor repair on a tow truck. The repair cost was $1,180,…
A: Answer - As the Expenditure incurred on building enhanced the life of the assets given it has to…
Q: On 1st January 2018, Goliath Ltd purchased a new machine for use in its production process. The cash…
A: Non-current assets are crucial for the carrying out of the daily operations of the business. These…
Q: On February 1, 2019, Edwards Corporation purchased a parcel of land as a factory site for $120,000.…
A: General points - All the costs incurred in related to build a building should be capitalized to the…
Q: Harshman Company constructed a building for its own use. The company incurred costs of $40,000 for…
A: Given: For material and supplies = $40,000 Direct labor = $60,000 Overhead rate = 50% Cost of…
Q: On January 1, 2018, Absolutely Bar & Grill purchased a building, paying $57,000 cash and signing…
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Q: On January 1, 2021, SMC decided to dispose of an item of plant that is carried in its records at a…
A: Impairment loss is the difference between the carrying value of asset and the recoverable amount of…
Q: During the current year, Sacrosanct Company purchased a second-hand machine at a price of…
A: Capitalized costs are depreciated or amortized over time instead of being expensed immediately. The…
Q: Calculate the equipment total cost at acquisition. The equipment was sold on December 31, 2023 for…
A: According to IAS 16 ( Property, Plant and Equipment ) any items of fixed asset can be capitalized if…
Q: What is the cost of patent?
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Q: The following costs were incurred by Ivy Nomafo Ltd in 2020 in the design and construction of a new…
A: IAS 16 Property, plant and equipment is applicable on those property, plant and equipment that are…
Q: In January, 2022, Harmony Inc. has the following expenditures related to manufacturing a new…
A: In manufacturing industries, the most commonly used fixed asset are the machineries. The acquisition…
Q: following costs were incurred by ABCDEFGH, Inc.. during 2020:
A: The given questions can be answered in context with IND as 16 i.e. Property plant and equipment.…
Q: What is the cost of patent?
A: The patent can be defined as the grant of exclusive right for research or invention of a product,…
Q: A permanent steel building used for the overhaul of dewatering systems (engines, pumps, and…
A: A) The MACRS-GDS property class defines the number of years of useful life of the asset. Therefore…
Q: . During the current year, Dangerous company incurred the following costs: Research and development…
A: The cost incurred can be classified as capitalized cost or expensed cost. The cost that are expensed…
Q: The Rosie Company (a VAT-registered company) paid P231,840, inclusive of 12% value added tax, to buy…
A: Solution:- Calculation of the cost of acquisition of the Equipment as follows under:-
Q: On June 30, 2016, a fire in Jeremy Company's plant caused the total loss of a production machine.…
A: Depreciation is charged on value of fixed assets in order to present and report correct carrying…
Q: On January 1, 20x1, ABC Co. decided to lease out a building that was previously used as office…
A: The question is fill in the blanks.
Q: On March 1, 2021, Sage Hill Company acquired real estate on which it planned to construct a small…
A: Architects and driveways and a parking lot are not part of cost of land.
Q: On January 1, 2019, Sinaran purchased equipment. Following are the costs incurred in connection with…
A: Cost of an asset is the amount that is incurred for the acquisition of the asset and making it ready…
Q: Synthia, Inc., a clothing manufacturer, purchased a sewing machine for P10,000 on July 1, 20x1. The…
A: Impairment loss is incorrect because it is calculated when the fair value of any asset (or…
Q: On February 1, 2020, Nelson Corporation purchased a parcel of land as a factory site for $320,000.…
A: Fixed Assets: It refers to the long-term assets having a useful life of more than a year which is,…
Q: On February 1, 2020, Sunland Company purchased a parcel of land as a factory site for $313000. An…
A: In the above question we have asked to calculate cost of land and new building of Sunland with the…
Q: Harshman Company constructed a building for its own use. The company incurred costs of $45,000 for…
A: Formula: Factory overhead cost = Direct labor cost x 50 % Multiplication of direct labor cost with…
Q: On July 1, 2016, Drenz Inc. purchased land and incurred other costs relative to the construction of…
A: Cost of land includes purchase price and any taxes and charges incurred to make it ready for use.…
Q: During the current year, Alanna Co. had the following transactions pertaining to its new office…
A: Assets: Assets are the resources of an organization used in the business operations to generate…
Q: The Lane Company incurred the following expenditures in January 2016: (1) research and development…
A: AMORTISATION is a process of writing off intangible assets over its useful life Intangible assets…
Q: On December 31, 2021, a machine owned by SLP COMPANY was destroyed by a fire. SLP COMPANY incurred…
A: The question is based on the concept used for accounting for loss. The loss should be reported on…
Q: During 20x1, Daisy Co. incurred P 1.5M in direct materials, P 1.2M in direct labor and P 1M in…
A: Journal entries records transaction in the books of accounts during the year. Every business…
Q: Raymond Stamping Services purchased a stamping machine priced at $21,500. The firm had to pay a…
A: Depreciation: It is a non-cash expense. This is the decrease in the value of a fixed asset…
- During 2001, Daisy Co. incurred P 1,500,000 in direct materials, P 1,200,000 in direct labor, and P 1,000,000 in
overhead in the self-constructed building to be held as an investment property. The building was completed on December 31, 2001. The fair value of the building on December 31, 2001, is P 4,000,000. Prepare all the necessaryjournal entries in 2001.
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- During the current year, Arkells Inc. made the following expenditures relating to plant machinery. Renovated five machines for $100,000 to improve efficiency in production of their remaining useful life of five years Low-cost repairs throughout the year totaled $70,000 Replaced a broken gear on a machine for $10,000 A. What amount should be expensed during the period? B. What amount should be capitalized during the period?During the current fiscal year, Heinrich Corp. incurred the following costs related to property, plant, and equipment: Amount paid to the contractor for the building constructed P13,000,000 Building permit fee 120,000 Excavation cost 110,000 Architect fee 440,000 Interest that would have been earned had the money used during the period of construction been invested in the money market 330,000 Invoice cost of machine acquired, terms 3/10, n/30 6,500,000 Freight, unloading and delivery charges for machine acquired 100,000 Custom duties and other charges 270,000 Allowance and hotel accommodation, paid to foreign technicians during installation and test run of machine 520,000 Royalty payment on machines purchased (based on units produced and sold) 240,000 Cash paid for the purchase of land (none was allocated to old building) 10,000,000 Mortgage assumed on the land purchased 2,100,000 Realtor’s commission 650,000 Legal fees, realty taxes and documentation expenses 900,000 Amount…On February 1, 20X0, Larkin Corporation purchased a parcel of land as a factory site for P400,000. An old building on the property was demolished, and construction began on a new building which was completed on November 1, 20X0. Costs incurred during this period are listed as follows: Demolition of the old building - P 25,000; Architect's fees - 35,000; Legal fees for title investigation and purchase contract - 5,000; Construction costs - 890,000; (Salvaged materials resulting from demolition were sold for P10,000.) Larkin should record the cost of the new building as
- During 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…Harshman Company constructed a building for its own use. The company incurred costs of $40,000 for materials and supplies, $60,000 for direct labor, and $6,000 for a supervisor's overtime that was caused by the construction. Harshman uses a factory overhead rate of 50% of direct labor cost. Before construction, the company had received a bid of $149,000 from an outside contractor. Assuming common practice is followed, at what value should Harshman capitalize the building? I answred 180500 which was incorrect. I need to know the right answer please with explanation.Harshman Company constructed a building for its own use. The company incurred costs of $45,000 for materials and supplies, $64,000 for direct labor, and $5,000 for a supervisor's overtime that was caused by the construction. Harshman uses a factory overhead rate of 50% of direct labor cost. Before construction, the company had received a bid of $159,000 from an outside contractor. 1. Assuming common practice is followed, at what value should Harshman capitalize the building? 2. The cost of the constructed asset will more closely approximate the cost of an equivalent purchased asset when the approach is used.
- Under IFRS 15, assuming the outcome of construction can be estimated reliably, what is the realized gross loss to be recognized by MDC for the year ended December 31, 20x22? On July 1, 20x31, Torela Company, a construction company, entered into a contract to construct a commercial building for a customer on customer-owned land for promised consideration of P1,000,000 and a bonus of P200,000 if the building is completed within 24 months. An inception date, the entity expects total construction costs of P700,000 to complete the building. The entity accounts for the promised bundle of goods and services as a single performance obligation satisfied over time in accordance with paragraph IFRS 15 because the customer controls the building during construction. At contract inception, the entity cannot conclude that it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur with respect to inclusion of bonus to contract price. Completion…During the current year, Arkells Inc. made the following expenditures relating to plant machinery. • Renovated seven machines for $250,000 to improve efficiency in production of their remaining useful life of eight years • Low-cost repairs throughout the year totaled $79,000 • Replaced a broken gear on a machine for $6,000 A. What amount should be expensed during the period? B. What amount should be capitalized during the period?Harshman Company constructed a building for its own use. The company incurred costs of $40,000 for materials and supplies, $68,000 for direct labor, and $7,000 for a supervisor's overtime that was caused by the construction. Harshman uses a factory overhead rate of 50% of direct labor cost. Before Construction, the company had received a bid of $162,000 from an outside contractor. Required: 1. Assuming common practice is followed, at what value should Harshamn capitalize the building? 2. What is justification for determining the value descrived in Requirement 1? 3. Would your answer change if the bid from the outside contractor had been $135,000?
- The Lane Company incurred the following expenditures in January 2016: (1) research and development costs of $510,000 that resulted in a new product that was patented during the year, (2) $12,000 in legal fees to have the patent registered, (3) $100,000 in advertising costs to develop a trademark for the newly patented product, (4) Legal fees of $8,000 incurred with the registration of the trademark, which will only be used for five years, and (5) $25,000 of advertising costs to promote its good name. Benefits to be derived from the patent are expected to last for five years. The president believes the promotion of Lane's good name will benefit the firm for three years. How much amortization expense should Lane recognize for 2016?On January 6, Year 1, Mount Jackson Corporation purchased a tract of land for a factory site for $825,000. An existing building on the site was demolished and the new factory was completed on October 11, Year 1. Additional cost data are shown below: Construction cost of new building $ 1,000,000 Real estate and attorney fees 18,200 Architect fees 84,000 Cost to demolish old building 77,100 Salvage recovery from old building (13,000 ) Which of the following are the capitalized costs of the land and the new building, respectively? Multiple Choice A $843,200 and $1,148,100 B $920,300 and $1,071,000 C $825,000 and $1,166,300 D $907,300 and $1,084,000On July 1, 2021, STS Inc. acquires a piece of equipment at $230,000 to manufacture product A. It paid $4,000 for shipping and $3,500 for installation of the equipment. Testing fees amounted to $4,500. The company was able to sell some of the output produced during the testing for $600. It also had to repair one part of the equipment that was damaged during the testing, which cost $1,000. The equipment’s useful life is 10 years or 400,000 units of product A. Its residual value is $35,000. It produced 800 units in 2021, 3,000 units in 2022 and 4,500 units in 2023. The units of production method is to be used for depreciation. Required Calculate the equipment total cost at acquisition. The equipment was sold on December 31, 2023 for $230,000 cash. Prepare the journal entry to record the sale.