Maintenance costs of mechanical equipment for the last quarter of € 1,500 are due, which have not yet been invoiced. on the above will become journal entries and which is it?
Q: On December 31, 2022, Big Red Paper Company had sales of $945,000 for the year. Refunds in 2023 are…
A: Date General Journal Debit Credit Dec. 31, 2022 Sales ($945,000 * 2.25%) $21,262.50…
Q: Bebe Co. purchased equipment with an invoice price of 1,680,000 on March 5, 2021. How much would be…
A: Under the Tax Code, the amount of input tax on imported or purchased capital goods which will be…
Q: On September 1, a piece of office equipment was sold for P2M. The office equipment had an original…
A: Gain on sale of office equipment is the excess amount received by way of sale over the carrying…
Q: Oct. 05, 2022: Some tables and chairs were purchased from Deluxe Furniture Co. for P10,000 to be…
A: Tables and chairs are fixed assets for the firm which will reflect in its balance sheet as…
Q: South Ltd agreed to pay for the insurance and maintenance of the vehicle, the latter to be carried…
A: 1) Schedule of lease receipts for South Ltd -
Q: A company has entered a construction contract on 1st January 2018. The contract will take 2 years to…
A: Construction contracts are given for big constructions undertaken with a quoted price for completing…
Q: Love Company entered into a contract to construct a 10-storey building for P8,000,000. The following…
A: Given: A calculation follows as, As per rule, allowed to answer three subparts and post the…
Q: Hall Ltd is preparing accounts for the year ended 30 September 2020. The licences subscription…
A: The expenses which are due but not paid are said to be accrued expenses and the expenses which are…
Q: ABC Company paid the annual fee of P30,000 for an equipment maintenance contract on July 1, the…
A: Monthly expense for equipment maintenance = Annual fee / 12 months = P30,000 / 12 months = P2,500
Q: In 2019, Richard Corp signed a contract valued at $1M. It was estimated that $750K would be required…
A:
Q: A Company has used the cost-to-cost percentage-of-completion (Over time) method of recognizing…
A: Solution: Total estimated gross profit by the end of 2019 = Gross profit for 2018 + Gross profit for…
Q: Honesty Construction is in its fourth year of business. The company has long-term construction…
A: Revenue from fix price contraction contracts is recognized on the basis of precentage of completion…
Q: To make the following adjustment entries of 31 December 20X0 of the TEST company, based on the…
A: Adjusting Entry – Adjusting Entries are the entries that make the accrual principle work for the…
Q: Sunland, Inc. began work on a $2,060,000 contract in 2017 to construct a warehouse. During 2017,…
A: Journal is a place where accounting transactions are listed in the book keeping system before ledger…
Q: 5. CRS Co. is preparing its December 31, 2018, The following information was gathered. - The bill…
A: Accrued Liabilities are the liabilities that are due for payment but have not been paid yet.
Q: A company has entered a construction contract on 1st January 2018. The contract will take 2 years to…
A:
Q: DUENAS, Inc. works on a P5,250,000 contract in 2018 to construct an office building. During 2018,…
A: The company is following cost to cost method for accounting of construction contact. The…
Q: The following information has been made available of Carson Sdn E year 2021 are as follows. 1) The…
A: Solution: Production budget for first half of the year is as under:
Q: ABC. Inc. works on a P5,250,000 contract in 2022 to construct an office building. During 2022, ABC…
A: In Construction project revenue shall be recognized on the basis of precentage of work completion.
Q: njury oceuring in the third quarter. How should fanek account for the tramsaction in is interim…
A: the interim financial report prescribed the minimum content that must be there in the intern…
Q: Blossom Limited purchased a machine on account on April 1, 2021, at an invoice price of $365,470. On…
A: Annual Depreciation-Straight line=Cost of the asset-Residual valueUseful life
Q: On 1 July 20X7 The Qtakamiro Company handed over to a client a new computer system. The contract…
A: IFRS 15: an entity recognises revenue to depict the transfer of promised goods or services to the…
Q: A Company has used the cost-to-cost-completion (over time) method of recognizing revenue. The…
A: Gross profit is calculated by deducting the cost of goods sold from the sales revenue of the…
Q: covered by insurance, becomes due and payable in April 10. Mahogany Shoe Factory has negotiated with…
A: Note: A cash budget is an estimate of a corporation's cash flows for a given time span. A cash…
Q: M/s. XYZ Private Limited has a cash balance of PKR 20,000 at the ending of the February and the…
A: The details regarding cash budget is given Required. Prepare Cash Budget for March, April and May.…
Q: Unearned Service Revenue
A: As per IFRS 15(Revenue From contracts with customers ), an entity need to allocate identify distinct…
Q: The following information is available December 31, 2020: (i) Store Supplies on hand on December…
A: A trial balance's main function is to confirm that the entries in a firm's accounting system are…
Q: On January 1, 2020, BuilderOne Inc. enters into a contract with a customer to redesign and update an…
A: As the company recognizes the revenue appropriately at a point in time, the percentage of completion…
Q: Tamarisk Furniture started construction of a combination office and warehouse building for its own…
A: As per the borrowing cost standard IAS 23, the borrowing cost is capitalized periodically or when…
Q: An aircraft requires a planned overhaul each year at a cost of GHS5,000. This is a condition of…
A: Given that, cost of the overhaul = GHS5000 And it is said that the aircraft requires a planned…
Q: Hyland Ltd commenced operation on 31 March 2020. The company balances its accounts at month-end and…
A: The question is related to General Journal Entries for the year 2020 ans 2021
Q: Store Supplies on hand on December 31, 2020, amounted to $255,500. (ii) Insurance of $2,775,000 was…
A: Given: Using the Adjusted trial balance, generate the statements requested by Ready Cash, i.e. A…
Q: An aircraft requires a planned overhaul each year at a cost of GHS5,000. This is a condition of…
A: Answer - It Should be - Capitalised and depreciated over the period to the next overhaul. Asset…
Q: Intelligent Toys, Inc (*ITP") is a well establish toys trading company which adopts the periodic…
A: Adjusting entries are prepared by the accountant or book-keeper before the preparation of financial…
Q: A company in the manufacturing sector prepares its account to 31.12 annually. In July 2020, the…
A: A company in the manufacturing sector prepares its account to 31.12 annually. In July 2020, the…
Q: On April 1, 2018, the new machinery was ordered at a quoted price of P56, 000. On July 1, 2018, it…
A: Depreciation expense is defined as the assigned cost portion of the fixed assets of the company…
Q: April 2020 to 31 March 2021 was £1,200. 9. Receipts from trade receivables total £52,000. 10.A new…
A: Journal Entry The purpose of preparing the journal entry to enter the required transaction into…
Q: The prepaid rent is P12,000 good for three months starting November 30, 2020. The balance sheet date…
A: As per the asset method, we need to record prepaid rent at the time of amount paid, and adjusting…
Q: On January 1, 2018, Sansa Construction entered into a contract amounting to P10,000,000 to construct…
A: Total cost of constructing the building = P10,000,000 Percentage of completion till December 31,…
Q: On January 1, 2011, DMCI Inc. started the construction of a building with a fixed contract price of…
A: Contract costing Contract costing is a concept used to track costs associated with a specific…
Q: Additional information for Dec 30 2020 not yet recorded: a. Unbilled and uncollected work to…
A: Working C) Supplies Consumed= 4500-3600= 900 D) Depreciation on Equipment= (30000-1500)/10=…
Q: y fee of $500 was included in the expense. The company expects the vehicle to be operational for 4…
A: Answer: Vehicle Cost $ 21,000.00 Upgrade $ 3,000.00…
Q: On January 1, 2021. Robredo Co. started the construction of a building with a fixed contract price…
A: Revenue is recognized based on the percentage of cost incurred, Percentage of completion = ( Cost…
Q: The Stonerich Construction had two projects for which it reported the following as of the end of…
A: Quezon City Mandaluyong Total RevenueQuezon City (P4800000 * 25%)Mandaluyong (P960000 * 15%)…
Q: On January 1, 2020, Miller Construction Company contracted to build a parking lot for the city of…
A:
Q: The following information relates to a company which prepares financial statements to 31st December…
A: As per IAS 37, a provision should be recognized when there is a present obligation on the entity as…
Q: Love Company entered into a contract to construct a 10-storey building for P8,000,000. The following…
A: “Since you have asked multiple sub-parts, we will solve the first three sub-parts for you. If you…
Q: Calculate the qualifying building expenditure. Select one:
A: As Given In the question Description Amount(RM) Land 580,000.00 Legal fees for an…
Q: The following information is available December 31, 2020: (i) Store Supplies on hand on December…
A: Journal entry is the process of recording the business transactions in the accounting books for the…
Maintenance costs of mechanical equipment for the last quarter of € 1,500 are due, which have not yet been invoiced.
on the above will become
Step by step
Solved in 2 steps
- Batman Company paid the annual fee of P30,000 for an equipment maintenance contract on July 1, the first day of its second quarter and incurred research costs in the same quarter of P12,000. The research did not prove to be fruitful. Batman should recognize the following expense amount in the second quarter:In May 2021, Cherry Company relocated an employee from the Manila head office to a branch in Zamboanga City. At the end of the reporting period on June 30, 2021, the costs are estimated at P350,000 analyzed as follows:Cost for shipping goods P 30,000Airfare 10,000Temporary accommodation cost for July and August 80,000Temporary accommodation cost for May and June 90,000Reimbursement for lease break cost paid in July (lease was terminated in May) 20,000Reimbursement for cost of living increases for theperiod May 1, 2021 to May 1, 2022 120,000 1. What amount should be recognized as provision for relocation costs on June 30, 2021?J. Mwakisha, a contractor, started business on 1 January 2018. Purchases and disposals of machines over the subsequent three years were as follows: Machine date of purchase cost date of disposal MA 1 1 January 2018 5,000,000 MB 2 1 July 2019 2,500,000 1 June 2020 MC 3 1 October 2020 7,000,000 The machines are depreciated on straight line basis using a rate of 20 per cent per annum. Required: For the years 2018, 2019 and 2020, calculate the depreciation attributable to each year using prorata or time basis.
- Scrimiger Paints wants to upgrade its machinery and on September 20 takes out a loan from the bank in the amount of $500,000. The terms of the loan are 2.9% annual interest rate and payable in 8 months. Interest is due in equal payments each month. Compute the interest expense due each month. Show the journal entry to recognize the interest payment on October 20, and the entry for payment of the short-term note and final interest payment on May 20. Round to the nearest cent if required.Whole Leaves wants to upgrade their equipment, and on January 24 the company takes out a loan from the bank in the amount of $310,000. The terms of the loan are 6.5% annual interest rate, payable in three months. Interest is due in equal payments each month. Compute the interest expense due each month. Show the journal entry to recognize the interest payment on February 24, and the entry for payment of the short-term note and final interest payment on April 24. Round to the nearest cent if required.To make the following adjustment entries of 31 December 20X0 of the TEST company, based on the information given:1. On March 1, 20X1, the company prepaid the amount of 20,000 euros, for office rent for the next 10 months.2. On September 1, 20X1, the company prepaid the operating premiums of its factory for the next six months, with a total value of 8,000 euros.3. On November 1, 20X1, the company prepaid its machine rents for the next three months, with a total value of 15,000 euros.It is noted that, as it appears from the calendar, on the above dates the relevant income or expense accounts were credited or debited directly, respectively.4. On 1/12 / 20X1 he receives a loan of 10,000 euros for one year with an obligation to pay interest of 1,200 euros at maturity.
- A company in the manufacturing sector prepares its account to 31.12 annually. In July 2019, the company completed the construction of its own factory as follows: Land - RM580,000 Legal fees for an agreement to purchase land - RM11,000 Legal fees for an agreement with the building contractor - RM10,000 Consultant's fees and building plan - RM80,000 Stamp duty for the purchase of land - RM9,000 Construction cost - RM1,510,000 Required: Calculate the qualifying building expenditure. Select one: A. RM2,200,000 B. RM1,620,000 C. RM1,590,000 D. RM1,600,000On January 1, 2018, Sansa Construction entered into a contract amounting to P10,000,000 to construct a building. The engineers of the company estimated that on December 31, 2018, the building was 75% completed. If the expected gross profit rate from the contract is 15%, what is the reportable income of the company in 2018 under the percentage of completion method? a. P1,125,000 b. P1,500,000 c. P7,500,000 d. P10,000,000 e. Answer not givenSheridan Company incurs the following costs in purchasing equipment: invoice price, $40,500; shipping, $1,025; installation and testing, $1,600; one-year insurance policy, $2,750.What is the cost of the equipment?
- The following additional information is available December 31, 2021: Store Supplies on hand on December 31, 2021, amounted to $800,000. Insurance of $2,660,000 was paid on January 1, 2021, for the 14-months to February 28, 2022 Prepaid rent expired December 31, 2021, amounted to $2,100,000 The furniture and equipment have an estimated useful life of 10 years and is being depreciated on the straight-line method down to a residual value of $200,000. The delivery van cost relates to two Toyoda Vans purchased for $2,000,000 each by the company on January 1, 2015. The double-declining balance method of depreciation is used to compute the van’s depreciation charges and their expected useful life is 10 years or 100,000 miles. In 2015, 10,000 miles were driven, 16,500 in 2016, 12,600 in 2017, 16,000 in 2018, 16,500 in 2019, 14,800 in 2020 and 16,800 in 2021. The residual value on both van is $241,592 each. On September 1, 2021, the company sold one of the vans to ZM Company for $680,000 on…Mwakisha, a contractor, started business on 1 January 2018. Purchases and disposals of machines over the subsequent three years were as follows: Machine Date of Cost Date of Purchase Disposal Shs. MA 1 1 January 2018 5,000,000 MB 2 1 July 2019 2,500,000 1 June 2020 MC 3 1 October 2020 7,000,000 The machines are depreciated on straight line basis using a rate of 20 per cent per annum. Required: For the years 2018, 2019 and 2020, calculate the depreciation…Hyland Ltd commenced operation on 31 March 2020. The company balances its accounts at month-end and the end of the reporting period is 31st December each year. Ignore GST. The following events occurred during 2020 and 2021. 2020 April 1 Paid $80 000 cash for a second-hand truck Paid $10 000 to recondition the engine of the truck June 30 Paid $20 000 cash for equipment. It was estimated that the equipment’s useful life would be 5 years with a residual value of $1 500. August 31 Paid $750 cash for the truck’s service and oil change. Dec 31 Recorded depreciation on the truck at 40% p.a. diminishing balance method, and on the equipment using straight line method. 2021 March 13 Paid $600 cash to replace a damaged bumper on the truck. July 1 Installed a new tray back on the truck at a cost of $7 500. Dec 31 It was decided to revise the diminishing balance depreciation method on the truck to 30%. Dec 31 Recorded depreciation on the truck and on the equipment. Required: a. Prepare journal…