Larsen Realty Corporation purchased a tract of unimproved land for $55,000. This land was improved and subdivided into building lots at an additional cost of $30,000. These building lots were all of the same size but owing to differences in location were offered for sale at different prices as follows. Operating expenses allocated to this project total $18,200. Group 1 2 3 No. of Lots 9 15 19 Price per Lot $3,000 4,000 2,000 Lots Unsold at Year-End 5 7 2
Q: Outline the responsibilities of the compliance officer or partner for income tax purposes in a…
A: A Limited Liability Partnership (LLP) is a partnership in which the partners' liability is limited.…
Q: The Heating Division of Oriole International produces a heating element that it sells to its…
A: Transfer price means the price charged by one department from other department of the same company…
Q: How to prepare a statement comprehensive income and statement of financial position The following…
A: Financial statement is prepared from the trial balance which include :-a) Profit and loss and…
Q: Required: Answer the following questions In June 2021, a costumer at ABC Corp slipped on a wet floor…
A: Provision represents the funds to cover the anticipated loss in the future by keeping aside some…
Q: The following data from the just-completed year are taken from the accounting records of Eccles…
A: The cost of goods manufactured (COGM) is an important accounting term that calculates the overall…
Q: Max Company has developed the following standards for one of its products: Direct materials 15…
A: Variable cost is the cost that changes with change in the activity of cost driver used. The variable…
Q: On January 1, 2020, Pronghorn Company purchased 6% bonds, having a maturity value of $550,000 for…
A: Investment means an asset purchased in expectation of earning a return on such investment in future…
Q: The costs per equivalent unit of direct materials and conversion in the Rolling Department of Jabari…
A: Inventory includes all the items, merchandise, stocks, and raw materials that are used by the…
Q: In 2021, Holyoak Inc. offers a coupon for $20 off qualifying purchases of its new line of products.…
A: Coupons basically a facility provided to customer to return or repair the product if there any…
Q: Selected accounts from Fair Trader Co.'s adjusted trial balance for the year ended December 31…
A: The income statement reports the revenue and expenses of the firm over a period of time. The income…
Q: A stock's par value refers to the: O A. Issue price of the stock. O B. Value assigned per share by…
A: In accounting, the term" stock" generally refers to the force of goods or accoutrements that a…
Q: On August 2, Jun Company receives a $8,000, 90-day, 11.0% note from customer Ryan Albany as payment…
A: Journal Entry :— It is an act of recording transactions in books of account when transaction…
Q: Mustang Corporation had 100,000 shares of $2 par value common stock outstanding. On December 31,…
A: Stock Dividend is a corporate action taken by an organization to issue stock against retained…
Q: Research the IFRS authoritative literature and provide answers to the following questions. Paragraph…
A: International Financial Reporting Standards (IFRS) is a set of accounting standards and principles…
Q: Silver Company makes a product that is very popular as a Mother's Day gift. Thus, peak sales occur…
A: Accounts Receivable: It refers to the amount that is owed by the customers of a business for the…
Q: Kilback Corporation generated an NOL of $2,000,000 in 2017. In 2023, Kilback generated taxable…
A: NOL refers to the net operating loss which can be carried back forward and adjusted from net income…
Q: 16. Morgan Company reported the following information for the year ended December 31, 2019: Net…
A: EARNINGS PER SHAREEarnings Per Share is the Ratio between Net Income for Common Stockholders Equity…
Q: Bran Corporation plans to discontinue a division that generates a total contribution margin of…
A: Differential analysis in cost accounting involves comparing the relevant costs and revenues of…
Q: January budgeted selling and administrative expenses for the retail shoe store that Craig Shea plans…
A: Selling and administrative expenses include all the operating expenses of doing business. It…
Q: Required information [The following information applies to the questions displayed below.)…
A: Budget is prepared by management in order to estimate future profit and loss from the…
Q: On January 1, 2023,
A: A cash basis taxpayer reports income when it is actually received, and reports expenses when they…
Q: George recently received a great stock tip from his friend, Mason. George didn't have any cash on…
A: As per the IRS provisions, any interest due towards money borrowed for investment purposes (also…
Q: Prepare all journal entries for Ristoni so that the company can emerge from the bankruptcy…
A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…
Q: The standard costs and actual costs for direct materials for the manufacture of 3,000 actual units…
A: Variance analysis is one of the technique used in management accounting. Under this, all standard…
Q: The management of Mecca Copy, a photocopying center located on University Avenue, has compiled the…
A: Balance sheet :— It is one of the financial statements that shows list of final ending balances of…
Q: Petrini Corporation makes one product and it provided the following information to help prepare the…
A: The manufacturing costs comprise direct materials, direct labor and overhead applied cost. The cost…
Q: Gen is a new sole proprietor. By the end of January 2022, she needs to issue what document to any…
A: The issuance of tax documents to independent contractors to whom a business pays $600 or more for…
Q: Luisa Crimini has been operating a beauty shop in a college town for the past 10 years. Recently,…
A: Honor Code: As per Honor Code we are advised to solve a maximum of three subparts of the…
Q: 1. Shares issued in connection with business combination are recorded at: A discount A premium Fair…
A: In case one company overtake the assets and liabilities of another company , then accounting for…
Q: The following costs and inventory data were taken from the accounts of Carla Vista Company for 2022:…
A: SCHEDULE OF COST OF GOODS MANUFACTUREDSchedule Of Cost Of Goods Manufactured are those costs which…
Q: Company A wants to earn R5, 000 profit in the month of January. If their fixed costs are R10,000 and…
A: The break even sales are the sales where business earns no profit or loss during the period. The…
Q: The following standards for variable manufacturing overhead have been established for a company that…
A: The variance is the difference between the actual and standard cost of production data. The variance…
Q: Premium Amortization On the first day of the fiscal year, a company issues a $2,900,000, 7%, 4-year…
A: Lets understand the basics.Amortization of premium or discount can be done using,(1) Effective…
Q: Required information [The following information applies to the questions displayed below] Trio…
A: Absorption costing method is a method of costing in which product cost is calculated by adding…
Q: Dana is an account representative at Ever Pharmaceuticals. Dana has a company car for customer…
A: = ( 2 * miles in each direction ) * No of weeks * benefits rate per mile
Q: XYZ Corp. sells recreational equipment. One of the company's products, a small camp stove, sells for…
A: Since you have posted a question with multiple sub-parts, we will do the first three sub-parts for…
Q: Presented below is information related to Novak Company. December 31, 2017 December 31, 2018…
A: The valuation of ending inventory can be carried out by 3 methodsFIFO Method LIFO MethodWeight…
Q: M3-11 (Algo) Calculating Cost per Equivalent Unit (FIFO) [LO 3-4] Cliff Company manufactures file…
A: EQUIVALENT UNITS OF PRODUCTION Equivalent Production is represents the production of a process in…
Q: Assume that both Fabricating and Finishing work on just two jobs during the month of March: MP-47…
A: Overhead : Indirect costs incurred while producing goods or services. Overhead costs cannot be…
Q: Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 20Y5. The accounting cycle…
A: Journal entries are prepared in the books of account to record the transactions as primary books by…
Q: How should the wages of a sheet metal worker in a fabrication plant be classified? O Product cost O…
A: Product costs are those costs which are incurred directly and indirectly for the production and…
Q: Use the following data to find the total direct labor variance if the company produced 3,500 units…
A: The total direct labor variance measures the difference between the actual labor costs incurred and…
Q: Blossom Company makes three models of tasers. Information on the three products is given below.…
A: Net Income refers to the amount an individual or business makes after deducting costs, allowances…
Q: On January 1, 20X3, Guild Corporation reported total assets of P470,000, liabilities of P270,000,…
A: In case one company overtake the assets and liabilities of another company , then accounting for…
Q: Requ Gable Company uses three activity cost pools. Each pool has a cost driver. Information for…
A: Activity Rate :— It is the rate used to allocate manufacturing overhead cost to cost object under…
Q: What is the present value of $3,000 to be received 2 years from now, if the discount rate is: (a)…
A: The question is based on the concept of financial measures.Present value can be calculated by…
Q: Beginning inventory, purchases, and sales data for DVD players are as follows: 56 units at $65 40…
A: FIFO Method -Under FIFO Method, Inventory purchased first are sold out. Costs are recognized based…
Q: The Brown Company bank statement for September 30, 2022 showed a balance of $1,681.50. The company's…
A: The bank reconciliaition statement is prepared to equate the balances of the cash book and pass book…
Q: NASH CORP. BALANCE SHEET COMPARATIVE AS OF DECEMBER 31, 2025 AND 2024 Cash Investments Receivables…
A: The cash flow statement is prepared to record the cash flow from various activities during the…
Q: Complete this question by entering your answers in the tabs below. T Accounts Trial Balance Income…
A: Owner's Equity Statement: It refers to a financial statement that is prepared by the business to…
Step by step
Solved in 3 steps with 3 images
- Utica Corporation paid 360,000 to purchase land and a building. An appraisal showed that the land is worth 100,000 and the building is worth 300,000. What cost should Utica assign to the land and to the building, respectively?Tree Lovers Inc. purchased 100 acres of woodland in which the company intends to harvest the complete forest, leaving the land barren and worthless. Tree Lovers paid $2,100,000 for the land. Tree Lovers will sell the lumber as it is harvested and expects to deplete it over five years (twenty acres in year one, thirty acres in year two, twenty-five acres in year three, fifteen acres in year four, and ten acres in year five). Calculate the depletion expense for the next five years and create the journal entry for year one.Tree Lovers Inc. purchased 2,500 acres of woodland in which it intends to harvest the complete forest, leaving the land barren and worthless. Tree Lovers paid $5,000,000 for the land. Tree Lovers will sell the lumber as it is harvested and it expects to deplete it over ten years (150 acres in year one, 300 acres in year two, 250 acres in year three, 150 acres in year four, and 100 acres in year five). Calculate the depletion expense for the next five years and create the journal entry for year one.
- Costs to Be Included in Historical Cost Valuation. At a cost of 200,000, Assume In-N-Out Burger acquired a tract of land for a restaurant site. It paid attorneys 7,500 to conduct a title search and to prepare the required legal documents for the purchase. State real estate transfer taxes totaled 2,500. Building permits totaled 1,200. Compute the acquisition cost of the land.Perlman Land Development, Inc. purchased land for$70,000 and spent $30,000 developing it. It then sold theland for $160,000. Sheehan Manufacturing purchased land for a future plant site for $100,000. Due to a changein plans, Sheehan later sold the land for $160,000. Shouldthese two companies report the land sales, both at gainsof $60,000, in a similar manner?The Tinsley Company exchanged land that it had been holding for future plant expansion for a more suitableparcel located farther from residential areas. Tinsley carried the land at its original cost of $30,000. Accordingto an independent appraisal, the land currently is worth $72,000. Tinsley paid $14,000 in cash to complete thetransaction.Required:1. What is the fair value of the new parcel of land received by Tinsley?2. Prepare the journal entry to record the exchange assuming the exchange has commercial substance
- On July 16, 20Y1, Wyatt Corp. purchased 40 acres of land for $350,000. The land has been held for a future plant site until the current date, December 31, 20Y9. On December 18, 20Y9, TexoPete Inc. purchased 40 acres of land for $2,000,000 to be used for a distribution center. The TexoPete land is located next to the Wyatt Corp. land. Thus, both Wyatt Corp. and TexoPete Inc. own nearly identical pieces of land.1. What are the valuations of land on the balance sheets of Wyatt Corp. and TexoPete Inc. using generally accepted accounting principles?2. How might fair value accounting aid comparability when evaluating these two companies?Simons Company purchased land to build a new factory. The following expenditures were made in conjunction with the land purchase: • Purchase price of the land, $150,000 • Real estate commissions of 7% of the purchase price • Land survey, $5,000 • Back taxes, $5,000 What is the initial value of the land? a. $160,000 b. $160,500 c. $165,500 d. $170,500On July 16,20Y1, Wyatt Corp. purchased 40 acres of land for $350,000. The land has been held for a future plant site until the current date, December 31, 20Y9. On December 18, 20Y9, TexPete land Inc. purchased 40 acres of land for $2,000,000 to be used for a distribution center. The TexoPete land is located next to the Wyatt Corp. land. Thus both Wyatt Corp. and TexoPete Inc. own nearly identical pieces of land. 1. What are the valuations of the land on the balance sheets of Wyatt Corp. and TexoPete Inc. using generally accepted accounting principles? 2. How might fair value accounting aid comparability when evaluating these two companies?
- Blackpink Company purchased land with a building on it, for P2,280,000. It was reliably determined that the building is worth twice as much as the land. Blackpink has the intention of using the old building hence, necessary remodeling at a cost of P800,000 were initiated. Also, Blackpink constructed driveways and sidewalks amounting to P204,000, fences of P100,000, and water system of P64,000. During the year, Blackpink also purchased machinery with a list price of P700,000. Freight on machinery purchased amounted to P8,000 while repairs to machinery due to damage during shipment amounted to P4,600. The manufacturer offered Blackpink 2% cash discount for the said machine, but due to cash constraint, it was not availed. 9) How much is the adjusted balance of the building? A. 1,520,000 B. 1,724,000 C. 2,320,000 D. 2,524,000 10) How much is the initial cost of the machine? A. 694,000 B. 698,600 C. 708,000 D. 712,600DEF Co. purchased a lot for ₱8,000,000. Immediately after the purchase, DEF Co. started the construction of a new building on the lot. Additional information follows: Legal cost of conveying title to land ₱ 40,000 Special assessment 20,000 Survey costs 60,000 Materials, labor, and overhead costs 22,000,000 Cash discounts on materials purchased not taken 120,000 Clerical and other costs related to construction 56,000 Excavation costs 400,000 Architectural fees and building permit 240,000 Supervision by management on construction 48,000 Insurance premiums paid for workers 520,000 Payment for claim for injuries not covered by insurance 180,000 Savings on construction 800,000 Cost of changes to plans and specifications due to inefficiencies 560,000 Paving of streets and sidewalks (not included in blueprint) 40,000 Income earned on a vacant space rented as parking lot during construction 36,000 1. How much are the capitalized costs of the land, land improvement and the…Relative Sales Value Method: -- Apple Corporation purchased a track of unimproved land for $610,000. This land was improved and subdivided into building lots at an additional cost of $125,000. These Building lots were all of the same size but owing to differences in location were offered for sale at different prices as follows. Group No. of lots Price per Lot 1 21 25,000 2 13 20,000 3 9 18,000 Operating expenses for the year allocated to this project total $72,500. Lots unsold at the year-ended were as follows: Group No. of lots 1 9 2 3 3 4 INSTRUCTIONS: At the end of the fiscal year Apple…