Legal and audit fees Rent for office space, share equally by the administrative and sales offices 700,000 2,400,000 600,000 Delivery expense Office salaries Insurance Sales representative salaries Sales discount Depreciation expense- sales equipment Depreciation expense – office equipment Advertising expense Sales commission expense 1,500,000 850,000 650,000 250,000 50,000 75,000 150,000 350,000 15,500,000 6,500,000 Sales Cost of goods sold
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Compute for the Net Income.
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- The following results are available for Division X and Y:Division X Division YProfit before interest and tax P185 000 P172, 000Capital employed P1, 540, 000 P1, 650, 000The cost of capital is 10%.Calculate and comment on the performance of the departments based on:a. Return on capital employed (4 marks)b. Residual incomOreo reported the following for the period:Sales P1,000,000Cost of Sales P300,000Operating expenses P100,000Determine the OSD assuming that Oreo is a corporationWhat accounting entry would you do 50:50 joint operation was commenced between two participants. Mary Company contributed cash of $90 000, and Strickland Company contributed a Building with a fair value of $90 000 and a carrying amount of $75 000. Using the line-by-line method of accounting, Strickland Company would record? DR Building in JO $75 000 CR Building $75 000 DR Building in JO $945000 CR Building $37 500 CR Gain on sale of building $7 500 DR Investment in joint operation $45 000 CR Building $37 500 CR Gain on sale of building $7 500 DR Cash in JO $45 000 DR Building in JO…
- Naughty Company assembles the following data relative to a certain entity in determining the amount to be paid for net assets and goodwill: Assets at fair value before goodwill 2, 600, 000Liabilities 900, 000Shareholders’ equity 1, 700, 000 Net earnings after elimination of unusual or infrequent items:2008 200, 0002009 230, 0002010 300, 0002011 250, 0002012 270, 000 Required:Calculate the amount of goodwill under the following:1. Average earnings are capitalized at 10%2. A return of 8% is considered normal on net assets at fair value. Excess earnings are capitalized at 15%.3. A return of 10% is considered normal on net assets at fair value. Goodwill is measured at 5 years excess earnings.4. A return of 10% is considered normal on net assets at fair value. Excess earnings are expected to…Unusual income statement items Assume that the amount of each of the following items is material to the financial statements. Classify each item as either normally recurring (NR) or unusual (U) items. If unusual item, then specify if it is a discontinued operations item (DO). a. Interest revenue on notes receivable. b. Gain on sale of segment of the company's operations that manufactures bottling equipment. c.Loss on sale of investments in stocks and bonds. d. Uncollectible accounts expense. e. Uninsured flood loss. (Hood insurance is unavailable because of periodic Hooding in the area.)Use the following information (in thousands):Service Revenue¥1,600,000 Income from continuing operations200,000 Net Income180,000 Income from operations440,000 Selling & administrative expenses1,000,000 Income before income tax400,000Determine the amount of other income and expense
- 1. For external reporting, the individual financial statements of the home office and the branch are combined a. by using complex consolidation procedures. b. by recognizing the home office's own assets, liabilities, income and expenses plus its share in the branch's assets, liabilities, income and expenses. c. by adding together similar items of assets, liabilities, income and expenses. d. by adding together similar items of assets, liabilities, income and expenses 'and eliminating reciprocal accounts. 2. A credit memo received from the branch is recorded by the home office as a. Credit to home office account b. Credit to allocated expense c.Credit to investment account d. Debit to investment accountCommodity markets -purchase 30.000,00 Wage of the staff 10.000,00 Depreciation of fixed assets 6.000,00 Premiums 1.000,00 Advertising and promotion 800,00 Overhead cost 4.000,00 Revenue from sales 250.000,00 Income from investments and investments 15.000,00 Gains from disposal of property, plant and equipment 500,00 Loss from disposal of financial data 100,00 Rental income 50.000,00 Third party fees 2.500,00 Credit interest 1.400,00 Debt interest 4.500,00 Fixed maintenance costs 2.000,00 Considering that: a) the stocks 1.1.20X0 were 5000 € b) the final stock on 31.12.20X0 was determined by physical inventory at 3000 € (c) the income tax rate is 30%; compile the 20X0 income statement, vertical by type.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 Megan Corporation as of December 31, 2018, includes the following accounts: Copyrights $ 30,000 Deposits with advertising agency (will be used to promote goodwill) 27,000 Bond sinking fund 70,000 Excess of cost over fair value of identifiable net assets of acquired subsidiary 390,000 Trademarks 120,000 In the preparation of Megan's statement of financial position as of December 31, 2018, what should be reported as total intangible assets?Super Senior Agency is a VHWO. The following events occurred during the year. The agency uses one control account for its fixed assets, with supporting subsidiary records.1. Property was purchased for $200,000. A down payment of $40,000 was made from unrestricted cash, and a 14% mortgage was signed for the remainder.2. Office furniture was purchased for $9,000 on open account.3. A local corporation donated and installed room partitions. The value of the donated items and services was $14,000. Super Senior’s policy is to release donor restrictions over the useful life of the assets to match depreciation expense.4. At year-end, a payment was made covering mortgage interest for one year, plus a $10,000 payment on the principal.5. Office equipment costing $3,000, with a book value of $1,000, was sold for $1,800 cash. The gain is unrestricted.6. Fully depreciated equipment costing $7,000 was written off. There was no scrap value.7. A depreciation schedule was prepared, showing annual…