Exercise 3 An investment of 150,000 is expected to produce annual cash eamings of P50,000 for 5 years. Its estimated salvage value is 70,000 during the first year and this is expected to decrease by P15,000 annually. Required: Compute the bail-out period.

Q: Your answer is incorrect. For both FIFO and LIFO, calculate the sum of ending inventory and cost of ...

A: FIFO is first in first out inventory valuation method under which inventories which are purchased fi...

Q: On March 15, 2014, Rex Company paid property taxes of P180,000 on the factory building for calendar ...

A: As per accrual concept of accounting, business should record all expenses and revenues for the parti...

Q: Grouper Company has the following production data for May: ●   Beginning work in process inventory...

A: Ending work in process is the work which is in process at the end of the period.

Q: For the purposes of equity accounting, it is presumea that the investor has significant infiuence ov...

A: SOLUTION An Entity is separate and distinct business unit for purposes.it have separate books of acc...

Q: Compute the ending inventory at May 31 and cost of goods sold using the FIFO and LIFO methods. FIFO ...

A: solution concept periodic inventory system                 Under periodic system of inventory , the ...

Q: Atty. Diokno owns 30% of the capital and profits of his law office. The law office reported P5,000,0...

A:                                Atty Diokno is partner in a law office .  As per the provisions of Se...

Q: On 1 January 2015: A Company has a Building which cost $800,000. Accumulated Depreciation to date on...

A: Impairment loss = Carrying amount – Recoverable amount Carrying amount = Original cost – Accumulated...

Q: Identify the accounting assumption, accounting principle, or reporting constraint that mos appropria...

A: Accounting principles are those rules, regulations and guidelines which are used by the accountants ...

Q: State whether the following items of income and expenditure are of a capital or revenue: i. Amount r...

A: The capital income is the income received from investment or sale of fixed assets. The capital expen...

Q: 20.Pomelo Company has the policy of valuing inventory at the lower of cost and net realizable value ...

A: Inventory is one of the important current asset for the business. Mostly business prefer to use lowe...

Q: The following data pertain to a particular item sold by Pomegranate Company. 8/1 – Beg. invy: 2,000...

A: Weighted Average Method In the weighted average method each time purchases made by the entity and th...

Q: Pacific Hotels operates a centralized call center for the reservation needs of its hotels. Costs ass...

A: Lets understand the basics. There are two method for cost allocation which are, Single rate  - In th...

Q: The Blueberry Company values its inventory by using the FIFO retail method.. The following informati...

A: FIFO stands for First in First out. The goods Purchased first are to be sold first. 

Q: YELLOW Company owns an office building and leases the offices under a variety of rental agreements i...

A: Accrual basis: Under accrual basis accounting, revenue and expenses are recognized when they are inc...

Q: Walsh Company manufactures and sells one product. The following information pertains to each of the ...

A: The question is based on the concept of Cost Accounting.

Q: Which of the following questions cannot be answered when analyzing the information presented in an i...

A: Answer: Income statement is the statement which shows the profit or loss when the revenue and expens...

Q: One of the basic purposes of managerial accounting is to provide information to various management l...

A: Answer: Managerial accounting is the accounting method that generates the reports that helps the man...

Q: The inventory records of Kiwi Company show the following purchases during the first quarter operatio...

A:

Q: Rayleigh & Co. Partial Balance Sheet as at 31st December 2021 RM Common Share (RM2) RM50,000,000 Pai...

A: Stock dividend refers to dividend distribution to the shareholders in form of additional shares in c...

Q: On March 15, 2014, Rex Company paid property taxes of P180,000 on the factory building for calendar ...

A: Formula Used: Property tax per quarter = Total property tax paid for the year / Number of quarters i...

Q: 7.The following data pertain to a particular item sold by Pomegranate Company. 8/1 – Beg. invy: 2,0...

A: Under the weighted average method of inventory valuation, the weighted average cost per unit of the ...

Q: 28.Under the average cost retail method, the following are additions to/deductions from beginning in...

A: Retail method of inventory is generally used by the retailers for estimation of their balances of en...

Q: The inventory account of Leni Company at December 31, 2021 has a balance of P1,800,000 and was found...

A: Under FOB destination, titles of goods are transferred to the buyer only when goods are delivered to...

Q: A bond with a face value of $6,000 pays quarterly interest of 3.5 percent each period. Twenty-two in...

A:

Q: Req 3A: Compute the unit product cost for Year 1, Year 2, and Year 3. (Round your intermediate calcu...

A: Income statement refers to a statement which shows the revenue and expense of the company of a parti...

Q: Which of the following items will not be shown in the balance sheet of ahotel

A: Balance sheet is an orderly arrangement of assets and liabilities of a  business entity on a particu...

Q: 10.In periods of rising prices (inflation), the use of which of the following inventory cost flow me...

A: Under first in first out method, the goods which are brought into the inventory first are sold first...

Q: The Cherry Company’s physical inventory on December 31, 2021 showed that merchandise with a cost of ...

A: Under FOB destination, titles of goods are transferred to the buyer only when goods are delivered to...

Q: BROWN Company keeps limited records. Its assets and liabilities at the beginning and end of the curr...

A: Lets understand the basics. Balance sheet equation says that, total assets is always equals to the t...

Q: How much of this refund should be included in his 2021 federal gross income?

A: The tax-ability of refund from state and local government is decided based on whether the tax payer ...

Q: Whether wages paid to all employees are supported by a written and verifiable record of hours worked...

A: Auditing refers to audit of financial statements of a entity in order to check whether they show tru...

Q: Checks Issued How much is the Balance per Book? Requirements= 1. Present the Reconciliation per Bank...

A: Bank Reconciliation Statement The purpose of preparing the bank reconciliation statement is to corre...

Q: 6.Which of the following is incorrect?   A:   Bearer Plant-Mango Tree; Agricultural Produce-Harveste...

A: Solution Concept Bearer plant are those plant which is used to in production and supply of agricultu...

Q: Yao Company began operations on June 1, 20x1 and prepares monthly financial statements. It has the f...

A: The prepaid expenses are the expenses paid in advance but not yet due for payment. 

Q: 12 Our company currenty makes and sells two products: A and B. The relative number of production and...

A: The Break-even point indicates that total units are to be sold by the business entity to recover its...

Q: 3.Which of the following pairs of inventory terms would NOT usually go together?   a. Periodic inven...

A: In the periodic inventory, method inventory is updated at a specific time period, while in the perpe...

Q: Based only on the information given, how much was BLUE’s 2021 net income

A: Net cash provided by operating activities is the amount received in excess of payments relating to o...

Q: Provide detailed Income statement

A: Net Income   10575

Q: This is a situation where the seller actually paid the freight charges but is not legally responsibl...

A: FOB Destination, Freight Collect: If the products are sent FOB destination, the customer is responsi...

Q: On January 24, 2022, Mother Earth Consulting collected $5,700 it had billed its clients for services...

A: Lets understand the basics. In matching principle of accounting, income and expense should be record...

Q: 9) Building depreciation (10) Construction oquipment depreciation 40,000 30,000 Using the transactio...

A:

Q: 36.A group of thirty 2-year old cattle was held at January 1, 2021.  On this same date, additional f...

A: The question is related to calculation of change in fair value less cost to sell due to physical cha...

Q: Azure laptops has a manufacturing plant operating at full capacity has the sales of 3,000,000 for th...

A: Lets understand the basics. Financial leverage company EBIT with the EBT of the entity. Formula = EB...

Q: our year end is December 31. You lent $120,000 to another company on Oct 1. If the interest rate is ...

A: Solution Concept The amount of the interest receivable is mathematically equal to =principal * inter...

Q: 1 2 3 4 5 6 7 8 9 10 11 Chapter 1: Applying Excel       Data   Sales $66,640 Variable cos...

A: Gross margin = Sales - Cost of goods sold Contribution margin  = Sales - Total variable costs

Q: On September 30, 2020, a fire at Cherimoya Company’s warehouse caused severe damage to its entire in...

A: Under FOB destination, titles of goods are transferred to the buyer only when goods are delivered to...

Q: O Assets and Liabilities Income and Capital Revenue and Expenses O Assets and Liabilities and Capita...

A: Solution Note : Dear student as per the Q&A guideline we are required to answer the first questi...

Q: radpit Inc. has constructed a production equipment needed for the company’s expansion program. Bradp...

A: Borrowing costs relating to the acquisition, construction, and production of qualifying assets shoul...

Q: On January 1, 2020, Seabreeze Construction Company owned 4 dump trucks, 2 excavators and other const...

A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as D...

Q: the shareholders' equity of Gregorio Company included P4,000,000 of P10 par ordinary share capital a...

A: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value per share...