Nicanor, a Non-Resident Alien residing in Canada, bought 20,000 (@par value of Php 100) shares of stocks of ABC Corp., a

Q: Received a statement of account for the services Delgado, for drafting and filing the Articles of In...

A: These are the accounting transactions that are having a monetary impact on the financial statement o...

Q: The following are some of the characteristics of an asset available for lease. E (Click the icon to ...

A: (Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the questio...

Q: Happy Travel Company was set up by Janet Chan two years ago. December 31, 2021, after adjusting entr...

A: The balance sheet shows the financial position of the company that includes the assets, liabilities,...

Q: Whispering Steel Company, as lessee, signed a lease agreement for equipment for 5 years, beginning D...

A: The correct answer for the above mentioned question is given in the following steps for your referen...

Q: In performing risk assessment procedures for property, plant and equipment, an auditor may inquire o...

A: The main objective of the Audit is to take reasonable assurance about the True and fair view of fina...

Q: In performing risk assessment procedures for investments, an auditor may inquire of the client perso...

A: Risk Management Meaning: Risk assessment is a term used to describe the overall process or method wh...

Q: Aces Incorporated, a manufacturer of tennis rackets, began operations this year The company produced...

A: Unit cost under variable costing = Direct material + direct labor + variable overhead Ending invento...

Q: Oslo Company prepared the following contribution format income statement based on a sales volume of ...

A: The operating leverage indicates a level at which the business entity can increase its income by inc...

Q: American Importers reports net income of S50,000 and sales revenue of S625,000. If the company's gro...

A: Formula: Cost of goods sold = Sales revenue - Gross profit

Q: A company issued a P3,000,000, 6-year bonds dated January 1, 2021, with a stated interest rate of 11...

A: Solution Carrying value of bond refer to the net amount between the bonds face value plus any unamor...

Q: Exercise 11-8 (Algo) Computing and Interpreting Return on Investment (ROI) (LO11-1) Selected operati...

A: Rate of return= Margin/Sales *100

Q: equired: Identify each cost as either a product cost or a period cost. If a product cost, classify i...

A: The costs are classified as product costs and period costs. The product costs are directly or indire...

Q: Calculate the following Ratios: d) Quick Acid Ratio e) Inventory Turnover Ratio (Days) f) Account...

A: Quick Acid Ratio = (Current Assets - Inventories) / Current Liabilities Inventory Turnover Ratio (Da...

Q: A company is considering two different proposals for computing the bonus for its new company preside...

A: Bonus = (Income before income tax and bonus - Bonus) x bonus % Let, Bonus = a

Q: All Things Brass produces brass handles for the furniture industry in a four-stage process -Mixing, ...

A: In this question, we will find out the conversion cost of direct material incurred uniformly through...

Q: Use the percentage method to compute the federal income taxes to withhold from the wages or salaries...

A:                             Normally the employer must refer Form W-4 of the employee when the emplo...

Q: A company had the following unadjusted balances on specific accounts for the year ended December 31,...

A: Current liabilities: Liabilities that are due to be paid within one year or within one operating cyc...

Q: On October 1, 2021, Chrysanthemum Co. purchased equipment by issuing a 9% promissory note with face ...

A: Lets understand the basics. When any asset is purchased against the notes payable then interest expe...

Q: On January 1, 2020,  Zen Company acquired trading securities with the following market value on Dece...

A: The trading securities are recorded on the fair value in the balance sheet. But the gain on such fai...

Q: Mar. 1 - Purchased 1,000 shares of its own common stock at $11 per share: DR CR Apr. 10 - Reissued 5...

A: Solution: When company buy its own stock, it will be debited to treasury stock and same is reported ...

Q: The following information is available for Drake Company, which adjusts and closes its accounts ever...

A: Adjusting entries are those journal entries which are passed at the end of accounting period for the...

Q: On January 1, 2019, Osgood Film Studios reported the following alphabetical list of shareholders’ eq...

A: Shareholders equity is the total amount attributable to the owners and shareholders of the company. ...

Q: The records at the end of January of the current year for Young Company showed the following for a p...

A: Under FIFO Method, Units which comes in first will be sold first and the inventory will be out of th...

Q: What are 'accelerated filers,' and how are they chosen (i.e., based on income, number of employees, ...

A: Introduction: A corporation is deemed an accelerated filer if it satisfies the following criteria af...

Q: Cash dividends on the $10 par value common stock of Garrett Company were as follows: 1st quarter of ...

A: Stockholder's Equity - Stockholder's Equity includes the amount contributed by shareholders issued i...

Q: ewham Corporation produces and sells two products. In the most recent month, Product R10L had sales ...

A: The breakeven analysis depends on the contribution margin of the product which is calculated by subt...

Q: On April 1, 2028, A Company purchased three units of baking equipment by issuing a four-year, non-in...

A: Solution: Amount of note = P3,200,000 Annual installment = P800,000 As note is non interest bearing ...

Q: 2,410,000 35% 8,000,000   Nicanor, a Filipino Citizen residing in Manila, had the following data for...

A: Passive income is the income generated from the job in which you are not actively involved. Interest...

Q: Pls answer this question with solutions. SENTIENT AWARE Co. is engaged in logistics services. During...

A: Provision is created for the net estimated amount of payment to be made for anticipated expenditure.

Q: Pls answer this question with solutions. A manufacturer gives warranties at the time of sale to purc...

A: Solution Warranty expenses is the cost that business expects to or has already incurred for the repa...

Q: The audit risk model consists of: AR = IR x CR x DR.  The detection risk is the dependent variable. ...

A: Level of Detection Risk is dependent on levels of Inherent Risk and level of Control Risk. There is ...

Q: The following information is obtained from a review of the record keeping process. Analyze the given...

A: Modified trial Balance is adjusting all the entries in the prepared trial balance at the end of the ...

Q: You audited the financial statements of PIS Corp. for the first time in 2022. The company started it...

A: Calculation of Net income in 2020. Particulars 2020 2021 2022 Net income  65,500 97,000 115,700...

Q: Question One : define inventory costing methods and compare between them in term of cost of goods so...

A: Note: Hi! Thank you for the question As per the honor code, We’ll answer the first question since th...

Q: In performing risk assessment procedures for property, plant and equipment, an auditor may inquire o...

A: Risk assessment procedures is also written as RAP, is the audit procedures performed by auditor for ...

Q: What is the balance of D's capital account at the end of the second year?

A: The partnership between partners and the distribution of profits and losses is governed by mutual ag...

Q: Sarasota Corp. reported net sales $ 600,000, cost of goods sold $ 336,000, operating expenses $ 160,...

A: Formula: Profit margin = ( Net income / Net sales ) x 100

Q: An auditor's preliminary control risk assessment is at a high level. Which of the following are poss...

A: An auditor, during the preliminary assessment of control risk, evaluates the effectiveness of that c...

Q: The difference between partnership and corporation can be best described in which of the following s...

A: Partnership is the association of two or more individuals who collaborate with a view to conduct a l...

Q: A new project is being planned for a study period of 8 years. It will require P250,000 for the start...

A: The yearly effective interest rate is a rate of interest calculated using a variety of observations ...

Q: As practice manager, you are asked by the owner physicians to prepare a preliminary budget for addin...

A: Preliminary Budget means the draft budget submitted for initial consider- ation by the Commission, w...

Q: If cash is collected at the sale: A.the operating cycle will be longer than if sold on credit B.the ...

A: Lets understand the basics.  Operating cycle is a company's cycle from the investing cash into raw m...

Q: high for all financial statements assertions, an auditor should document the auditor’s     A B ...

A: An Auditor understanding of its environment, it's entity and then assessing the risk of material in ...

Q: Selected operating data for two divisions of Outback Brewing, Limited, of Australia are given below:...

A: Margin refers to the net earnings of the entity in relation to its sales. 

Q: Ingalls Corporation is in the process of negotiating a loan for expansion purposes. The books and re...

A: Net income (NI), often known as net earnings, is calculated as sales minus cost of goods sold, selli...

Q: On June 30, the end of the first month of operations, Tudor Manufacturing Co. prepared the following...

A: The income statement is prepared to record revenue and expenses for the current period. The income s...

Q: Francis Company has 24,000 shares of common stock outstanding at the begining of 2019. Francis issue...

A: 1. Calculation of weighted average number of outstanding shares  as,

Q: Cinnamon Buns Co. (CBC) started 2021 with $53,900 of merchandise on hand. During 2021, $288,000 in m...

A: Ending inventory can be described as the end of the accounting period the ending inventory of the cu...

Q: Ivanhoe Leasing Company agrees to lease equipment to Shamrock Corporation on January 1, 2020. The fo...

A: The lease is classified as Finance lease for both the lease term (i.e.7 years) is the substantial po...

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.