On January 1, 2020 Gingerbread, Corp. purchased a reindeer merry-go-round as an attraction to draw customers during the holiday season. The following information is available: Invoice price $280,000 Shipping cost $4,000 Set-up cost $2,000 Insurance to cover years 2020 and 2021 $12,000 Necessary repair during set-up 500   Determine the amount to be record as the capitalized cost of the asset.  a.286,000 b.280,000 c.286,500 d.298,500

Q: On December 1, 2020, BTS Company purchased a P4,000,000 tract of land for a factory site. BTS razed…

A: Accounting is the process of recording, classifying and summarising accounting information in such a…

Q: BCareful incurred the following expenditures in 2020:   Purchase of land P15,600,000 Land survey…

A: Capitalisation of fixed assets means all costs incurred for purchase of fixed assets and all direct…

Q: On April 5, 2021, Kinsey places in service a new passenger automobile that cost $60,000. The car is…

A: Depreciation is an accounting method for dispersing a tangible or physical asset's cost over its…

Q: Blossom Limited purchased a machine on account on April 1, 2021, at an invoice price of $365,470. On…

A: The cost of fixed ads includes the acquisition cost, freight cost, installation charges or other…

Q: On January 1, Mitzu Co. pays a lump-sum amount of $2,750,000 for land, Building 1, Building 2, and…

A: Given that: Lump sum payment for Land, Buildings and for Land improvements = $27,50,000

Q: On January 2, 2020, ABC Co. purchased a machine on credit terms 2/10, n/30. The invoice price was…

A: Cost of machinery includes all cost that incurred from purchasing to bringing the assets to the…

Q: conditions.   What is the depreciation for 2019? What is the depreciation for 2021? What is the…

A: The question is related to Government Garant. Required  What is the depreciation for 2019? What is…

Q: What should be the carrying amount of the machine as of December 31, 2021? QUESTION 2: What is the…

A: The determination of the carrying amount of machine as of December 31,2021,the  deferred income…

Q: During 2020, ABC Co. incurred these expenditures relating to its plant building: Continuing and…

A: Option b is correct

Q: 12 The following costs were incurred by ABCDEFGH, Inc.. during 2020:     July 1  Organization…

A: All fixed assets should be capitalized in the balance sheet of the company. Fixed assets should be…

Q: On January 1, 2019, Yolanda Company purchased a plating machine for P5,400,000. Yolanda received a…

A: Carrying Amount  as on December 31, 2020 is p 3,000,000  refer step 2 for explanation

Q: The following costs were incurred by ABCDEFGH, Inc.. during 2020:

A: As per IND AS 16 cost of PPE includes the following Purchase price of asset…

Q: Assume that in January 20X6, a Hotcake House restaurant purchased a building, paying $57,000 cash…

A: Income statement refers to those financial statements of a company which shows the revenues and…

Q: 1 Jan. Purchased a building and a truck for $95,000; a promissory note was signed. The apprais al…

A: NOTE : As per BARTLEBY guidelines, when multiple sub parts are given then first three sub parts are…

Q: Depletion Feller Company purchased a site for a limestone quarry for $100,000 on January 2, 2019. It…

A: Ending inventory in tons = 80,000 - 60,000 Ending inventory in tons = 20,000 tons

Q: On April 1, 2013, Archer Corporation purchased a new machine on a deferred payment basis. A down…

A: The question is multiple choice question. Required  Choose the Correct Option.

Q: On January 1, Mitzu Company pays a lump-sum amount of $2,600,000 for land, Building 1, Building 2,…

A: The straight line depreciation method depreciates the assets equally each year. Depreciation expense…

Q: 53. On January 1, 2019 Cheese Company acquired and installed an oil rig. The was acquired at its…

A: As per IAS16, an entity shall also capitalise the cost of dismantling the asset in future along with…

Q: Ôn January 1, 2020, Pharoah Company purchased a varnishing machine for P6,000,000. The entity…

A: Grants means the amount received without any sale of product or providing any services. Government…

Q: E10-17 Determining the cost of assets Lawson Furniture purchased land, paying $65,000 cash and…

A: Cost of the assets will include purchase price of assets along with all costs necessary to bring the…

Q: On January 1, 2020, ER Corp. purchased a truck for $100,000, with an estimated useful life of 8…

A: Depreciation rate as per double declining  balance  method = 2/useful life

Q: On January 1, 2019, Caylor Corp. purchases a machine for $185,000, estimated useful life of 40,000…

A: The question is related to Depreciation Accounting. Under the  Unit of Production Method…

Q: On January 1, 2019, Brazeau Transport purchased a $165,000 truck for hauling cattle across the…

A: Amortization expense is the one which is recorded to report the regular usage of the asset in the…

Q: How much is the carrying value of the overpass as of December 31, 2021 assuming ABC used the…

A: Given Cost of overpass = 25000000 Life = 20years  Depreciation per year = 25000000/20 = 12500000

Q: BCareful incurred the following expenditures in 2020:   Purchase of land P15,600,000 Land survey…

A: cost of land building and machinery

Q: - The business purchased a machine for 24.000 TL on 01.06.2020 . The scrap value of the machine is…

A: Annual Depreciation (straight line method) = (Cost of the assets - Residual value) / Expected life…

Q: Smitty Inc. wishes to use the revaluation model for this property: Before Revaluation • Building…

A: Journal entries are prepared to record the financial and non-financial transactions of the business…

Q: In 2020, Murphy Manufacturing Inc. acquired and placed in service a piece of machinery to…

A: Section 179 is related to the property deduction which normally is depreciation. Deduction section…

Q: Quell Company purchased a varnishing machine for P3,000,000 on January 1, 2020. The entity received…

A: Explanation: Treatment of government grant If the government grants are given for the purchase of…

Q: The company estimates that the useful life of the machine is 4 years with a Tk. 5,000 salvage value…

A: The calculation of amount of annual depreciation is shown hereunder : Cash price of machine Tk…

Q: following costs were incurred by ABCDEFGH, Inc.. during 2020:

A: The given questions can be answered in context with IND as 16 i.e. Property plant and equipment.…

Q: , the acquisition cost of the machine must be

A: Acquisition can be defined as non regular business activity, were one business entity takes up the…

Q: orporation, a publicly accountable entity, purchased a metals processing plant on December 31, 2019…

A: Given: On December 31, 2019 at a cost of $8,000,000 cash. The useful life of the plant is 20 years…

Q: 22) Maker Company purchased a varnishing machine for P450,000 on January 1. 2023. The company…

A: As Given on January 1, 2023, the manufacturer firm acquired a varnishing equipment for P 450.000. In…

Q: Karen Company purchased a varnishing machine for P3,000,000 on January 1, 2019. The entity received…

A: As per the IAS 20, government grant related to assets requires setting up grant as deferred income…

Q: For each item, indicate if it is included in the capitalized cost of the machinery. What is the…

A: Hi student Since there are multiple questions, we will answer only first question.

Q: On August 1, 2018, Banco Company purchased a new machine on a deferred payment basis. A down payment…

A: The total cost for fixed that is to be capitalized includes purchasing price, transfer cost and…

Q: On February 1, 2021, KIKO Co. purchased a land and building for 10,000,000 as a factory site. The…

A: As per IFRS 16, Property plant and equipment Cost of constructed property consists all costs that…

Q: The D Company self constructed an asset for its own use. Construction started on January 1,2020 and…

A: Solution: Year 2020: Weighted-Average accumulated expenditure and interest capitalized Date…

Q: On January 1, Mitzu Co. pays a lump-sum amount of $2,600,000 for land, Building 1, Building 2, and…

A: Solution: (1) Total cost allocation Estimated Value Percentage of the assessed value X Total…

Q: On January 1, 2019, the Philippine Rabbit Bus Co. purchased 20 buses at a total cost of…

A: Depreciation Expense = Total Cost - Salvage ValueUseful Life

Q: Schager Company purchased a computer system on January 1, 2019, at a cash cost of $25,000. The…

A: Double declining Depreciation = Cost of the asset x Depreciation rate x 2 Depreciation rate =…

Q: On November 1, 2021, Ning Corp places a new asset into service. The cost of the asset is $65,000…

A: Depreciation is a reduction in the value of assets due to the usage of that asset. We can evaluate…

Q: On January 1, Mitzu Co. pays a lump-sum amount of $2,600,000 for land, Building 1, Building 2, and…

A: Journal entries ae used to record a business transactions for the first time in the accounting…

Q: Peach Company purchased a machine for P7, 000, 000 on Jan. 1, 2019 and received a government grant…

A: The process of recording business transactions in the books of accounts for the first time is known…

Q: The following costs pertain to a new delivery truck that was purchased on March 31, 2020.  All costs…

A: Capitalization cost includes all those expenses which are incurred to make assets available to use…

Q: What should be the journal entry to record the disposal of the equipment?

A: As per IAS 39 ( Financial Instruments - Recognition and Measurement ) Financial assets has to be…

Q: Scott Industries had the following transactions during 2022: 1. Acquired an office building on three…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: On July 1, 2021, Company A purchased land and buildings and agreed to rent the facility to a…

A: In accordance with IAS 40, the Investment property shall be measured using Cost Model Fair Value…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.