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- The total liability of A is P150,000 of which P80,000 was paid in cash and P10,000 was issued with promissory note. The new balance of A’s liability is a. P60,000 b. P70,000 c. P80,000 d. P150,000On April 1, 2021, JPG Company sold for P84,000 a stereo which paid had a cost of P54,600. A down payment of P9,000 was made with the provision that additional payments of P7,500 be made monthly thereafter. Interest was to be charged at a monthly rate of 2% on the unpaid balance of the principal; the monthly installment was to apply first to the interest then to the balance of the principal. After completing four months installment the customer defaulted and the stereo was repossessed. At this time, the market value of the stereo was estimated to be P22,500. What is the net income (loss) at the end of the year?6. On January 01, 2020 Kit Company, Inc. establishes a branch in Bauang. During the year, Kit Inc. transfers cash and merchandise to the branch worth P15,000 and P45,000 respectively. Freight was paid by the home office worth P1,500 included in the cost of merchandise. The home office also incurred P5,700 expenses of which 30 percent was allocated to the branch. On December 31, 2020, the branch incurred a loss of P4,000. What is the balance of the branch account as per home office books
- 19. On January 1, 20x1, ABC Co. extended a P1,000,000 loan to one of its officers as part of ABC’s car and housing assistance program. The note received is due on January 1, 20x4 and bears 10% interest compounded annually. For the year ended December 31,20x3, interest income shall be The correct answer is: 121,00011. In 2021, ABC Corporation which is subject to MCIT has the following records: Sales: net of discounts and allowances 9,500,000 Cost of sales 5,000,000 Gain on sale of building 150,000 Allowable deductions 4,420,000 Compute the MCIT of ABC Corporation. P46,000 P46,500 P93,000 P95,000Enid paid the gross payroll of P15,000. The deductions are: withholding tax, P1,000 and SSS, P500. The asset of E is decreased by: A.15,000 B. P16,500 C. P13,500 D. P14,500
- PHE, Inc.estimates warranty expense at 2% of sales. Sales during the year were $4 million and warranty related cash expenditures were $34,000. What was the balance in the Warranty Liability account at the end of the year? Select one: a. $80,000 b. $36,000 c. $34,000 d. $46,000 e. $56,0009. On January 1, 20X2, ABC Company signed an agreement to operate as franchisee of XYZ Company for an initial franchise fee of P 30,000,000. Of this amount, P 10,000,000 was paid when the agreement was signed and the balance is payable in equal annual payment of P 5,000,000 beginning December 31, 20X2. The agreement provides that the down payment is not refundable and no future services are required of the franchisor. ABC’s credit rating indicates that it can borrow money at 12% for a loan of this type. Determine the cost of the franchise. (Use 4-decimal PVF)21- After our business deducted 20% income tax on 48.000 TL, which is the one-year rent of the workplace it rented for one year on 01.03.2020 , the rest was paid to the owner of the real estate from the bank. In accordance with the concept of periodicity, how much is the amount that should be accepted as an expense in the future period? a) 40.000 TL B) 8.000 TL NS) 9,600 TL D) 38,400 TL TO) 48,000 TL
- On January 1, 20x1, HYBE acquired a machine by using a 3%, P4,000,000 note due on January 1, 20x4. Interest is payable semi-annually. The effective interest rate is 12%. The carrying amount on initial recognition is 3,114,884. How to get the carrying amount on initial recognition?9 - 391- The balance of the calculated VAT account is 5,000 TL, 191 The balance of the deductible VAT account is also3 750 T, 190-The balance of the transferred VAT account is 1000 TL. Which account is the difference and how?saved? A) 360-To the receivable of the tax and funds account payable B) 190- To the debt of the transferred VAT accountC) 360-To the debt of the tax and funds payable account D) 190- To the receivable of the VAT account of the transferredE) NoneQ7:-On 1st January, 2012 A sells a truck to B, on the instalment payment system, on the following conditions : (1) The purchase price of the truck is $ 1,00,000. (2) This amount is payable to A in four equal annual instalments along with 12% interest per annum on the outstanding balance, the first instalment being payable on the date of sale. (3) B in turn, hires out the truck to A for a monthly hire of $ 3,000 per month from 1st January, 2012. The hire charges are to be adjusted, at the end of each year, against the amount due to A on account of principal and interest, any difference being settled in cash. B, charges 20% depreciation (on the written-down-value method) on the truck. All payments are made as per the agreement. On 1st January 2015, the truck is sold by B to A for $ 15,000 in cash. Show in B’s books, Truck Account, Interest Suspense Account and A's Account.
