n January 1, 2020, Christine Company borrowed P30,000,000 at 12% to finance partly the construction of building and partly for general purposes. The loan shall be repaid commencing the month following completion of the building. Expenditures for the completed structure totaled P25,000,000 during the year ended December 31, 2020. These expenditures were incurred evenly throughout the year. Christine Company earned interest of P200,000 for the year on the unexpended portion of the loan. 1. What amount of interest is capitalized as cost of building on December 31, 2020? 2. If the company is an SME, what is the cost of the building on December 31, 2020?

Q: State the difference between common stock and preferred stock.

A: Shareholders' fund consist of two types of stock namely common stock and preferred stock. Both…

Q: shall be reported at what amount? The Bar Corporation applies the lower of cost or net realizable…

A: Accounting standard for valuation of inventory Valuation of Inventory shall be done as cost or net…

Q: Comment on the current and potential impact of creative accounting and discuss its management…

A: Bookkeeping is the process of recording financial transactions that affect a company. The accounting…

Q: McCourt Inc. manufacturers a unique product. The company's controller has prepared the following…

A: Estimated direct labour cost for February = Standard direct labor hours required x Average direct…

Q: Keesha Co. borrows $100,000 cash on November 1 of the current year by signing a 150-day, 10%,…

A: The 150 days from November  1 will expire on March 31. Thetefore, Note will expire on March 31 next…

Q: Conduct a analysis for this com financial statement

A: Financial Statement analysis Financial statement analysis is the process undertaken to make…

Q: The maturity value of a P100,000 , four-month, 9% note is

A: Note receivable is one of the current assets of the business, on which payment is expected to be…

Q: could someone please explain how after controlling the natural log of total assets, current ROA can…

A: Return on investment (ROI) is essential in an organization used to assess the efficiency or…

Q: Alexander Corporation reports the following components of stockholders’ equity at December 31, 2019.…

A: The shareholders' equity section records the issued capital, additional paid in capital and retained…

Q: Johnnie Walker Company provided the following data at year-end: Items counted in the warehouse…

A: Inventory refers to the goods which is not yet sold by the business but their goal is to sell these…

Q: Cash Budget Khloe Company imports gift items from overseas and sells them to gift shops and…

A: Cash budget- A cash budget is an estimation of the cash flows of a company over a particular phase…

Q: The following statement suits best the definition of ASSETS: O a. The assets are expenses incurred…

A: Assets are considered as the resources of the business used to run the daily activity of the…

Q: Messla, Inc. manufactures solar-powered vehicles. Some of the costs from the past year include:

A: 1. Janitor means care taker or door keeper. So, he is not direct involved in production.  That's why…

Q: Determine the selling price for goods sold on credit

A: All other information are not required. Cost of goods sold on credit and profit percentage are given…

Q: 2. Explain how information asymmetry causes market failure in the market for accounting information.

A: Accounting information is the information regarding the company of the financial statements and the…

Q: The following events occurred Gargantuan's first year of operations: 1. Acquired $36,000 cash from…

A: The cash flow statement is prepared to determine the cash generated or used by the business. The…

Q: a. What is the net present value of the project? (Negative amount should be indi factor to 3…

A: Net Present Value It is the difference between the present value of the cash inflows and present…

Q: Calculate net profit from the following? Net sales OMR 100000, Cost of goods sold OMR 40000, Rent…

A: Introduction: Net profit: Deduction of all expenses from revenues derives the net profit. Net profit…

Q: Bonneau Corporation has 100,000 shares of $10 par common stock outstanding. On July 31, the Board of…

A: Working Note: No. of shares issued = No. of common shares outstanding x Stock dividend rate =…

Q: Shalimar Company manufactures and sells industrial products. For next year, Shalimar has budgeted…

A: Cash receipt budget is the one that recorded the estimated receipts of cash in the coming period.

Q: Label each of the following accounts as asset (A), liability (L), owner’sequity (OE), revenue (R),…

A: Assets are the resources that are employed by the business for the end goal of maximizing the…

Q: The condensed financial statements of Ivanhoe Company for the years 2016 and 2017 are presented as…

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: Assignment: Present entries to record the following for a business that uses the Allowance Method:…

A: Adjusting entries are the one which are prepared at the year-end to rectify the errors and omissions…

Q: Given: Below are some data of the Income Statement accounts of Wishing Well Company for the year…

A: Cost of goods sold = Cost of goods available for sale - Ending Inventory where, Cost of goods…

Q: At the end of the month, the schedule of accounts payable (a list of ending amounts owed to…

A: A control account seems to be a general ledger account that simply contains summarized amounts.…

Q: Bonneau Company currently has 20,000 shares of $10 par common stock outstanding. Prepare entries to…

A: Treasury stock: Shares which are bought back by the company from the open market but not retired…

Q: MORGAN Merchandising is preparing its Sales Budget for the 3rd Quarter of 2020 based on a budgeted…

A: Budgeted sales revenue means the estimate of sales revenue for a future period.

Q: ABC Company reported the following in its statement of shareholders' equity on January 1, 2019:…

A: Treasury stock represents the shares of a company that have been bought back (but not yet cancelled)…

Q: The Maria Company estimated its factory overhead of the next period at P160,000. It is estimated…

A: ABC costing is a method in costing which is used to allocate cost based on various activities…

Q: Piedmont Company sells one cell phone for $500. The contribution margin is $300. What is the…

A: Lets understand the basics. Contribution margin ratio indicates contribution generated compare to…

Q: In the trial balance the balances of accounts are classified as follows, except one statement: a.…

A: Trial balance is the list of all ledger accounts which is written in the debit or credit side…

Q: Instructions (a) Determine the pension expense to be reported on the income statement for 2021. (b)…

A:

Q: Sweet Company’s outstanding stock consists of 1,700 shares of noncumulative 4% preferred stock with…

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

Q: On January 1, Year 2 Boothe Company paid $12,000 cash to extend the useful life of a machine. Which…

A: Capitalization of expenses in connection with the fixed assets should be done if they increase their…

Q: The comparative balance sheets for 2021 and 2020 and the statement of income for 2021 are given…

A: A cash flow financial statement that summarizes all cash inflows received by a firm from continuing…

Q: Lansing Company’s current-year income statement and selected balance sheet data at December 31 of…

A: The cash flow statement shows the cash inflow and cash outflow due to the operating activities,…

Q: S1: Government grant related to depreciable asset is usually recognized as income over the useful…

A: Introduction:- Government grants are support by government in the form of take of resources to an…

Q: Prepare the companies financial statements including income statement, equity statement, balance…

A: Financial Statements: Financial Statements are the summary Reports that shows the financial results…

Q: The following information applies to the questions displayed below.] In preparation for developing…

A: The cash flow statement is prepared to record the cash flow from various activities including…

Q: Shalimar Company manufactures and sells industrial products. For next year, Shalimar has budgeted…

A: The budget which estimates the future cash receipts of the business is referred to as the cash…

Q: Atlas Foods produces three supplemental food products simultaneously through a refining process…

A: The joint cost is the cost incurred to produce two or more products and the cost incurred is not…

Q: One of the following attributes in respect of accounting transactions is not correct: O a.…

A: Accounting transactions indicate the system of recording events having a monetary value that have…

Q: 3.A machine with a cost of? S20,000, a salvage value of? $8,000 and expected life of 15 years was…

A: Depreciation under Straight line method = (Cost - Residual value / Expected useful life)

Q: On January​ 1, 2018, you purchased 1,000 shares of a fund for​ $20.43 per share. During the​ year,…

A: A dividend appears to be a portion of a company's earnings and retained earnings distributed to its…

Q: Last year, Garrison Manufacturing sold 500 000 units at $4 each. Sales volume is expected to…

A: Formula used: Sales revenue = Sales units x Sales price per unit.

Q: At the end of the month, the schedule of accounts payable (a list of ending amounts owed to…

A: Accounts payable is a part of current liabilities which shows the amount due to creditors in respect…

Q: The firm Amble is entirely financed by equity. It has 4 million shares and a current share price of…

A: given   The firm Amble is entirely financed by equity. It has 4 million shares and a current share…

Q: TWENTYFIRST Corporation a manufacturer of cleaning products is preparing annual financial statements…

A: If the contingent liability is likely to occur and the amount can be reasonably estimated, the same…

Q: Bonneau Corporation declares a cash dividend of $100,000 on July 1 for any shareholder on record on…

A: Introduction: Journals: Recording of a business transactions in a chronological order. Each and…

Q: On 1 January 2014, Lystra entered into a lease agreement with Trina to rent an asset for a 6 year…

A: As per IFRS 16, The lease liability ia to be measured at commencement date. It is present  value of…

Contract Costing

Contract costing is about tracing particular costs related to a particular contract entered into with the customer. It is one of the forms of job order costing. It is useful in long-term contracts at the most. It is seen that substantial time is required for the completion of the contract which takes different accounting periods. Thus, it is very much helpful for recognizing the costs associated with it and accounting in their specific accounting periods.