machinery purchased under terms FOB shipping point Interest on loans borrowed to purchase an equipment Installation costs and cost of trial runs of a machinery Repairs on broken glass windows of a purchased buildings prior to
Q: Answer the follow: Explain the corporate characteristic termed “no mutual agency" Explain the corpo...
A: The question is related to Characteristics of Comapnies. A company is an artificial person created b...
Q: Steve Osbourne is considering opening a business, but the major decision faced is how to organize th...
A: Stockholder's Equity - Stockholder's Equity includes the amount contributed by shareholders issued i...
Q: The treasury department maintains the custody over the company's investments. Both the accounting an...
A: Since treasury department maintains the custody over the company’s investment.Therefore,
Q: Suppose a citizen of the United States travels to Brazil for plastic surgery and then returns to the...
A: International Trade: When the supplier of service or goods and buyer or receiver of service or goods...
Q: This is the residual interest in the economic resources of a company that remains after deducting ec...
A: The question requires the name of the residual interest in the economic resources of a company that ...
Q: Hollywood Co. computed an overhead rate for machining costs ($1,500,000) of $15 per machine hour. Ma...
A: The overhead is applied to the production on the basis of predetermined overhead rate.
Q: Problem 1 Two options need to be analyzed using internal rate of return with a MARR of 9% to determi...
A:
Q: Using the TRAIN ACT TAX CODE below how much annual tax will be paid by Juan who earns Php. 45,000 a ...
A: The Tax Reform for Accelaration & Inclusion Law [ TRAIN] Republi...
Q: enow.com/ilrm/takeAssignment/takeAssignmentMain.do?invoker3&takeAssignmentSessionLoca ris en les ajo...
A: Solution... Net cash flow from operating activities = $180,269 Net cash used for investing act...
Q: The December 31, 2021 adjusted trial balance section of Premier Construction's v sheet is below Adju...
A: T-Accounts - T-Accounts are prepare after preparing journal entries. After preparing journal entries...
Q: Cheyenne Corp. has the following inventory data: July 1 Beginning inventory 48 units at $19 $912 Pur...
A: LIFO (Last-in First Out): Under LIFO inventory method, units purchased last are sold first and the e...
Q: Cash $30,000 Accounts Receivable $2,000 Inventory $5,000 Fixed Assets $20,000 Total Assets Accounts ...
A: Assets are resources that are controlled which results from prior transactions that are expected to ...
Q: 8. $264,000 $105,600 $281,600 $158,400 6. $95,040 $57,024 3 $158,400 $63,360 $344,960 10 $95,040 $38...
A: Depreciation is the allocation of cost of asset over the useful life of the asset. Accumulated Depre...
Q: M 660 for a tennis racquet with trade discount of 20% and 12% Find the list price
A: List Price - List Price is the price at which the product was list before selling it to the customer...
Q: A company reports the following: Sales $1,460,000 Average accounts receivable (net) 100,000 Determi...
A: a. Accounts receivable turnover = Net sales / average accounts receivable Accounts receivable turnov...
Q: Quarterly income tax payments made by a non-resident citizen taxpaye nay be claimed as O neither a n...
A: Tax credit means amount can be substrate from total payable tax and offset overall liabilities.
Q: Sheffield Steel Company, as lessee, signed a lease agreement for equipment for 5 years, beginning De...
A: PV Table for 9% Period Discount rate @9% 0 1 1 0.9174 2 0.8417 3 0.7722 4 0.7084 5 0....
Q: 9. Which of the following is not a step that a CAE would perform in assurance mapping? a. Ensure th...
A: Answer To Question no. 9 Assurance can be taken from Internal Auditor as well as Statutory Auditor (...
Q: had lived under a classical tax system, which of the following is closest to the additional tax she ...
A: Imputation tax system is the system which has been implemented by the government under which the tax...
Q: rpe bsupuele M animuzaA 2S wo Item Nos. 23 and 24 are based on the following information: C, D, and ...
A: The partnership comes into existence when two or more persons agree to do the business and further s...
Q: Zachary Company has 600,000 shares of common stock outstanding. Perette Corporation purchases 168,00...
A: Formula: Percentage of outstanding shares own = Perette corporation purchased shares / Total outstan...
Q: Culver Corporation uses a periodic inventory system and reports the following for the month of June....
A: FIFO Cost of ending inventory (210 x 7) + (40 x6) = 1710 Cost of goods sold = (100 x 5) + (325 x6) ...
Q: Prepare the ledger of revaluation account, bank account and capital accounts.
A: Old Ratio- 1 :1 Retirement of Partner Teoh on 31.12.2021 New Ratio between Meng and Chen = 1:1 Rev...
Q: In July 2017, Lenux Corporation (a calendar-year taxpayer) purchased $2,140,000 of new office furnit...
A: The office furniture is put to use in July 2017. therefore half-year convention is used. An office f...
Q: Adjusted Trial Balance Account Titles Dr. Cr 101 Cash 5,468 106 Accounts Receivable 19,000 115 Other...
A: Closing Entries - Closing entries are required to close the temporary accounts after making financi...
Q: Matt Corpn bonds mature in 8 years, have a par value of S1,000, and a coupon rate of 6.7%. The marke...
A: Coupon amount = 1,000 x 6.7% = 67
Q: Compute the réálized gain or loss, recognized gain or loss, and the adjusted basis
A: A gain or loss is called rocgnized when it is not actually realised but from th...
Q: Assume the following five facts: • budgeted fixed manufacturing overhead for the coming period of $...
A: Predetermined plantwide overhead rate = budgeted variable manufacturing overhead rate + budgeted fix...
Q: Three major segments of the transportation industry are motor carriers such as YRC Worldwide, railro...
A: The assets turnover ratio indicates the efficiency of the firm in generating revenue by using assets...
Q: A farmer bought a tractor costing 25,000.00 payable in 10 semi-annually payments, each installment...
A:
Q: The following data were taken from the records of Waterway Company for the fiscal year ended June 30...
A: Schedule of Cost of Goods Manufactured Amount Direct Materials: Beginning Raw Materials...
Q: • Describe some civil and criminal consequences if CPAS/auditors fail to follow professional standar...
A: Auditor's Liability Risk: Audit risk is the possibility that financial statements are significantly ...
Q: 150,000 (150,000) 133,000 133, 000 1,000 1, (32, (5,000) 120,000 (120, 000) (6 270,000 30,000 (27, 0...
A: Shareholders refer to the entities or an individual who buys some shares in a company and is entitle...
Q: ing the valuatic ue, the auditor
A: The quoted investment in stock is the investment made by the company in purchasing the stock.
Q: The company is desirous of comparing serval financial transactions and possible outcomes to assist i...
A: Stockholder's Equity - Stockholder's Equity includes the amount contributed by shareholders issued i...
Q: A company uses the periodic inventory system and records purchases net of discounts. On April 1, the...
A: Purchase amount net of discount = P20,000 - 2% = P19,600
Q: The company is desirous of comparing serval financial transactions and possible outcomes to assist i...
A: The shareholder's equity is the main source of finance for every company. This is a major component ...
Q: rder costing system. The company has two departments through which most jobs pass. Overhead is appli...
A: Job Order Costing System : Job order costing is a method of calculating the cost of manufacturing ...
Q: Cozy Corporation purchased supplies at a cost of $24,000 during the current year. At January1, suppl...
A: Formula: Supplies expense = Beginning supplies + Supplies purchased - Ending supplies
Q: Quantitative Problem: Bank 1 lends funds at a nominal rate of 7% with payments to be made semiannual...
A: The Effective Annual Interest Rate (EAR) seems to be the rate of interest that has been adjusted to ...
Q: Steve Osbourne is considering opening a business, but the major decision faced is how to organize th...
A: Share refers to the smallest unit of the total capital of an entity.
Q: Use the 2016 marginal tax rates to compute the income tax owed by the following person. Unmarried he...
A: For the Unmarried Head of household Marginal tax rate is 15% for the year 2016 , income bracket $13,...
Q: The company Alumnos Emprendedores S.A. has an investment for a total amount of $175,800.00, and annu...
A: Period of Recovery (in years) = Investment / Annual Cash Flow
Q: n Deur Comoration has outstanding 60.000 charas of 506 praferenca haras uith a B50 nar ralua and 300...
A: Preference Shares are of various types and their rights vary as per t...
Q: 17. Complete the following balance sheet. Cash $30,000 Accounts Receivable $2,000 Inventory $5,000 F...
A: Introduction:- Balance sheet shows financial position of the company. It is based on the Accounting...
Q: Greek Manufacturing Company produces and sells a line of product that are sold usually all year roun...
A: The question is based on the concept of Cost Accounting.
Q: The object of distraint may either be personal and/or real properties of a delinquent taxpayer
A: Delinquent taxpayers are those taxpayers who did not pay the amount of taxes due till the deadlines....
Q: Harry, the owner of Harry Pte Ltd, was finalising his company accounts for the year ending 31 Decemb...
A: As we follow Accrual Basis of acounting we have to pass entries when the expenses and...
Q: On December 31, 2019, Ulster Co. issued P200,000 of 8% serial bonds, to be repaid in the amount of P...
A: Bonds appear to be a financial vehicles whereby an investor or individual lends money to a company ...
Q: Calculate the missing figure using the basic accounting equation Petty Cash Cash at bank 500 Capital...
A: This question deals with the balance sheet equation. As per balance sheet equation, asset is always ...
Which of the following are includable to the cost of property and equipment?
- Transportation costs on machinery purchased under terms FOB shipping point
- Interest on loans borrowed to purchase an equipment
- Installation costs and cost of trial runs of a machinery
- Repairs on broken glass windows of a purchased buildings prior to occupancy
Step by step
Solved in 2 steps
- Inclusion in Property, Plant, and Equipment Guthrie Inc. must determine whether the following items are included in property, plant, and equipment: a. idle equipment awaiting sale b. machinery kept on hand and used only when other machinery breaks c. land held for investment d. the right to publish a literary work e. progress payments on a building being constructed by a contractor f. fully depredated assets still being used g. expenditures to improve leased property h. equipment leased to others i. purchase of an asset with an expected life of 9 months j. obligation to remove leasehold improvement at the termination of a lease Required: 1. Indicate which items are included in the cost of property, plant, and equipment and which items are excluded from the cost of property, plant, and equipment. 2. Next Level For each item excluded from property, plant, and equipment, explain why it was excluded.To what extent do you consider the following items to be proper costs of the fixed asset? Give reasons for your opinions. a. Overhead of a business that builds its own equipment. b. Cash discounts on purchases of equipment. c. Interest paid during construction of a building. d. Cost of a safety device installed on a machine. e. Freight on equipment returned before installation, for replacement by other equipment of greater capacity. f. Cost of moving machinery to a new location. g. Cost of plywood partitions erected as part of the remodeling of the office. h. Replastering of a section of the building. i. Cost of a new motor for one of the trucks.The following are costs related to the purchase of a second-hand piece of equipment. Required: Indicate with an 'X' in the appropriate column whether the expenditure should be included in the cost of the asset. Include in the Not included Asset total In the Asset Total Description of cost expenditure Freight Installation Repair of vandalism during installation Replacement of worn-out parts at time of purchase Repair of damage incurred in reconditioning the equipment Fees paid to attorney to review purchase agreement B Computer equipment that was originally purchased for $ 170,000 and now has an accumulated depreciation balance of $ 130,000 is sold for cash of $ 60,000 Total $ 360,000 Required: Record the sale of the computer equipment…
- Which one of the following assets could be described as a current asset?a. Stock of goods for resaleb. Machinery to manufacture goods for resalec. Buildings to house the machineryd. Land on which the buildings standWhich of the following costs is not typically capitalized as part of an asset’s cost? A) initial testing costs B) Purchase price of a service contract for routine maintenance costs C) Costs of insurance during the construction period D) Transportation costs while the asset was in transit E) Installation costsWhich of the following statements is (are) correct?a. Accumulated depreciation represents a cash fund beingaccumulated for the replacement of plant assets.b. The cost of a machine includes the cost of repairingdamage to the machine during the installation process.c. A company may use different depreciation methods inits financial statements and its income tax return.d. The use of an accelerated depreciation method causesan asset to wear out more quickly than does use of thestraight-line method.
- Which of the following is not a characteristics of an asset that us classified as property, plant and equipment? a. It has physical aubstance B. It is long term in nature C. It is acquired for use in business operations. D. It is acquired for resale. 2. Which of the following is excluded from " Property,plant and equipment? A. Major spare parts and long live stand by equipment.B. Building used in businessC. Equipment held for rentalsD. Held for sale assets 3. The initial cost of an item of property, plant, and equipment includes. A. Purchase cost B. Direct cost C. Decomissioning and restoration costD. All of these. 4.Which of the following is not capitalized as cost of land? A. Land improvements that have indifinite useful life B. Unpaid taxes on the property prior to the acquisition date not assumed by the entityC. Closing costs, such as titling and similar cost D Special assessment 5. Knife Co. Acquires a building by paying 6m and assuming a 2M unpaid mortgage on the building. How…Choose from the following accounts: Accounts Payable Accumulated Depreciation - Buildings Accumulated Depreciation - Equipment Accumulated Depreciation - Leasehold Improvements Accumulated Depreciation - Machinery Accumulated Depreciation - Vehicle Overhaul Accumulated Depreciation - Vehicles Advertising Expense Asset Retirement Obligation Buildings Cash Common Shares Contributed Surplus - Donated Capital Cost of Goods Sold Deferred Revenue - Government Grants Depreciation Expense Donation Revenue Equipment Finance Expense Gain on Disposal of Buildings Gain on Disposal of Equipment Gain on Disposal of Machinery Gain on Disposal of Vehicles Gain on Vehicle Overhaul Gain or Loss in Value of Investment Property GST Receivable Interest Expense Interest Payable Inventory Investment Property Land Land Improvements Legal Expense Loss on Disposal of Buildings Loss on Disposal of Equipment Loss on Disposal of Machinery Loss on Disposal of Vehicles Loss on Vehicle Overhaul Machinery Mineral…Please choose from the following accounts: Accounts Payable Accumulated Depreciation - Buildings Accumulated Depreciation - Equipment Accumulated Depreciation - Leasehold Improvements Accumulated Depreciation - Machinery Accumulated Depreciation - Vehicle Overhaul Accumulated Depreciation - Vehicles Advertising Expense Asset Retirement Obligation Buildings Cash Common Shares Contributed Surplus - Donated Capital Cost of Goods Sold Deferred Revenue - Government Grants Depreciation Expense Donation Revenue Equipment Finance Expense Gain on Disposal of Buildings Gain on Disposal of Equipment Gain on Disposal of Machinery Gain on Disposal of Vehicles Gain on Vehicle Overhaul Gain or Loss in Value of Investment Property GST Receivable Interest Expense Interest Payable Inventory Investment Property Land Land Improvements Legal Expense Loss on Disposal of Buildings Loss on Disposal of Equipment Loss on Disposal of Machinery Loss on Disposal of Vehicles Loss on Vehicle Overhaul Machinery…
- Which one of the following items is not a consideration when recording periodic depreciation expense on plant assets? a. Salvage value b. Estimated useful life c. Cash needed to replace the plant asset d. CostWhich statements are correct concerning measurement of cost of property, plant and equipment?I. The purchase price of an item of property, plant and equipment is the cash price equivalent at the date of recognitionII. If payment is deferred beyond normal credit terms, the difference between the cash price equivalent and total payment is recognized as interest expense over the life of the asset.III. If an item of property, plant and equipment is acquired in exchange for a nonmonetary asset or a combination of monetary and nonmonetary asset, the cost of such item is measured at fair value unless the exchange transaction lacks commercial substance or fair value of either asset received or given up is not reliably determinable.IV. If an entity is able to determine reliably the fair value of both the asset given up and asset received in an exchange, the fair value of the asset given up is used to measure the cost of asset received in exchange.Based on the knowledge that you have learned from this unit and the relevant accounting standards, answer the following questions. Your answers must demonstrate your own understandings and applications of relevant accounting standards, but not a direct quote of the standards. a.Use an example to explain what are included in the original cost of property, plant, and equipment when they are initially acquired. b. What is the basic principle for valuing property, plant, and equipment acquired in exchange for other non-monetary assets? c. Use an example to illustrate how gain or loss on disposal is calculated and recorded when an item of property, plant, and equipment is disposed of.