On May 1, 2021, AAA and BBB formed a joint operation to acquire and sell a special type of merchandise. The contractual arrangements provide that AAA is to manage the joint operation for a fee and that gain and losses are to be divided equally. On May 1, 2021, BBB invests cash of P52,000, which P50,000 was used to purchase merchandise. AAA incurs expenses amounting to P2,500. On May 20, one half of the merchandise was sold for P36,000 cash. In the books of BBB, the Investment in Joint Operation account on May 30, 2021 would show a balance of:
Q: Isaac Inc. began operations in January 2021. For some property sales, Isaac recognizes income in the…
A: Taxable income is the measurement of income which is used to calculate the amount of tax that needs…
Q: The amount remitted by the retailer to the consignor is: the net income earned by the consignor on…
A: The calculation of amount remitted by the retailer to the Consignor and the net income earned by the…
Q: MASAKIT SA BUNGO CORPORATION operates a customer loyalty program. The entity grants loyalty points…
A: In the given question it is given that in 2019 the entity issued 50,000 award credits. The fair…
Q: On May 1, 2021, AAA and BBB formed a joint operation to acquire and sell a special type of…
A: Gross Profit = Sales - Cost of Goods sold = 36,000 - 25,000…
Q: In 2021, Detroit transferred goods to a retailer on consignment. The goods cost P450,000 and…
A: Consignment means where consignor send goods to consignee to be sold by later on the behalf of…
Q: ou noted the following items relative to the company's intangibles assets of Pete Corporation at…
A: Carrying amount of Franchisee:
Q: ABC Corporation has the following sales during the 1ª quarter of 2021: Sale to private entities…
A:
Q: In 2020, HP Company transferred goods to a retailer on consignment. The goods cost P450,000 and…
A: Consignment Account The basic factor which are included in the consignment business goods send by…
Q: Daniel Martin and John Duke contracted with J & S Distributors, Inc., to purchase a KIS Magnum…
A: Requirement a: In the current situation, JS failed to complete the order within the mentioned time…
Q: Out-of-pocket costs of the business combination paid by TOOLAD on September 30, 2021, were as…
A: Step 1 In business combination, when the number of shares is issued, they are generally issued at…
Q: Information concerning Haengbok's intangible assets is as follows. 1. On January 1, 2019, Haengbok…
A: Haengbok company's 1. On 01.01.2019, Signed an agreement to operate as franchisee of CHIR DAK…
Q: Barra Inc. sells machinery to GM Corp. under an arrangement where GM prepays for the equipment on…
A: Unearned Revenue :— It is money that is received in advance for which service will be provided or…
Q: Korean Short Ribs Company sold a tract of land with carrying amount of P3,000,000 to Instant Pot…
A: Formula: Notes receivable amount = Principal amount - Installment amount with interest
Q: Operation account on May 30, 2021 would show a balance of: a. 45,750 b. 56,250 c. 54,250 d. 50,000
A: Joint operation is other than joint venture there is no entity formed in joint operation. Only…
Q: Compute for the VAT payable. 1) On January 30, 2021, XYZ Corporation, a non-VAT registered company,…
A: Guideline: “Since you have asked multiple question, we will solve the first question for you. If…
Q: On December 31, 2021, the end of the fiscal year, Revolutionary Industries completed the sale of…
A: Working note (1):
Q: In 2021, a merchandise was sold on instalment basis by ONB for P80, 000 at a gross profit of 25% on…
A: The Instalment method is applied when a customer opts to make payments through instalments, rather…
Q: Late in December 2021, XYZ Corp. (XYZ), a publicly traded company, completed the manufacture of 600…
A: Journal entry A journal entry refers to the recording of the transactions in the books of accounts.…
Q: On June 30, 2018, Streeter Company reported the following account balances:On June 30, 2018,…
A: Compute the amount of goodwill.
Q: compute the Income Tax Due.
A: Income tax due is the amount being paid by the taxpayer or the business owner over the net income…
Q: On May 1, 2021, AAA and BBB formed a joint operation to acquire and sell a special type of…
A: Two or more persons come together for a short term business operation with an intention to make…
Q: 1. On January 1, 2020, Blue signed an agreement to operate as a franchisee of Hsian Copy…
A: An intangible asset is an asset which do not exists in physical form but an organisation derives…
Q: On May 1, 2021, AAA and BBB formed a joint operation to acquire and sell a special type of…
A: Investment cost by BBB = P 52,000 Cost of goods purchased = P 50,000 Other Expenses = P 2,500…
Q: Familiar Company operates a customer loyalty program. The entity grants loyalty points for goods…
A: Revenue - Revenue is referred to as the money which is generated from business activities and it…
Q: On July 2, 2022, Honesty Co. consigned 3,200 books costing P60 and retailing for P100 each to…
A: Let assume number of books sold by integrity co. Is X . Selling price of book = P100 Sale value…
Q: For fiscal year 2021, ABC Corporation, a retailer, has Pl.4 billion in gross sales, P560 million in…
A: The amount of income tax due is the difference between the net income received and the amount paid…
Q: Oriole Company, which began operations at the beginning of 2018, produces various products on a…
A: SOLUTION- Pretax Financial income 510000…
Q: On July 2, 2022, Howard Co. consigned 3,200 books costing P60 and retailing for P100 each to Ines…
A: The actual books sold by Ines Co. will be total sales divided by sales price after deducting…
Q: ssume that Kwek-kwek Corp. participates in a customer loyalty program operated by Suka Corporation…
A: Total Sales of Kwek-Kwek = 10,000,000 As per loyalty program operated by Suka corporation 1 point is…
Q: On January 1, 2018, an entity granted a franchise to a franchisee. The franchise agreement required…
A: Upfront non-refundable Franchisee Fee: Instead, the upfront price is seen as a down payment for…
Q: Information concerning Cheyenne Corporation’s intangible assets is as follows. 1. On January 1,…
A: The initial franchise fees of $50,000 should be recorded as intangible asset in the balance sheet on…
Q: On October 10, 2020, Flounder Co. entered into a contract with Belisle Inc. to transfer Flounder’s…
A: Journal Entries in the Books of Flounder Co. for the Year 2020 15th Dec. 2020 Belisle Inc.…
Q: In 2019, entity A sold goods to its subsidiaries (entities B and C) for P500,000 and P400,000,…
A: Related party transactions refer to the dealings between two or more parties which have common…
Q: Assume that Kwek-kwek Corp. participates in a customer loyalty program operated by Suka Corporation…
A: 1 point is granted ever P200 spent
Q: In 20x1, Seth Wholesalers transferred goods to a retailer on consignment. The goods cost P225,000…
A: A consignment sale is an arrangement in which an entity sale its product through a retailer in…
Q: The Smoky Corporation, a VAT-registered company, imported goods worth P 900,000 paying thereon the…
A: Value added tax means the tax that will be charged by the government on the sale of goods or…
Q: Korean Short Ribs Company sold a tract of land with carrying amount of P3,000,000 to Instant Pot…
A: Formula: Notes receivable amount = Principal amount - Interest amount with installment
Q: A VAT registered person is engages in both VAT and VAT exempt During the year total sales amounted…
A: VAT credit allowed in the proportion of the VAT Sales.
Q: ABC Corporation has the following sales during the 1st quarter of 2021: Sale to private entities…
A: GIVEN ABC Corporation has the following sales during the 1st quarter of 2021: Sale to private…
Q: On December 31, 2021, the end of the fiscal year, Revolutionary Industries completed the sale of its…
A: Calculate total income before income taxes;
Q: On December 31, 2021, the end of the fiscal year, Revolutionary Industries completed the sale of its…
A: Income tax expense = Income from continuing operations before income taxes X tax rate = 12500000 x…
Q: Information concerning Sandro Corporation's intangible assets is as follows. 1. On January 1, 2020,…
A: a. Prepare a schedule showing the intangible assets section of S Corporation's balance sheet at…
Q: On January 30, 2021, XYZ Corporation, a non-VAT registered company, purchased from ABC Corporation,…
A: SOLUTION- EXPLANATION- VAT RATE = 12% SALES (A) 280000 OUTPUT VAT (B)= (280000 / 1.12 )…
Q: MASAKIT SA BUNGO CORPORATION operates a customer loyalty program. The entity grants loyalty points…
A: In order to determine the revenue earned in 2020 the award credit in 2020 is required to be…
Q: On September 1, 2019, NATSU DRAGNEEL Company paid P2, 000, 000 for the purchase price of the…
A: It is a traditional method of Accounting which states that "Fixed Asset is assumed to be service /…
Q: Redeemed Expected to be redeemed 2019 45,000 80% 2020 22,500 90% What is the revenue from…
A: Actual sale of goods sold to customer on stand alone basis is: =P12,000,000 - P3,000,000 =P9,000,000…
Q: On May 1, 2021, AAA and BBB formed a joint operation to acquire and sell a special type of…
A: Joint venture means where two or more persons comes together to do some business and share profit as…
Q: On December 31, 2021, the end of the fiscal year, California Microtech Corporation completed the…
A: The income from continuing operations, income from discontinued operations net of taxes and net…
Q: ABC Corporation has the following sales during the 1st quarter of 2021: Sale to private entities…
A: The central tax (CGST), state tax (SGST), integrated tax (IGST), or union territory tax (UTGST)…
Q: Oriole Company, which began operations at the beginning of 2018, produces various products on a…
A: Journal Entry Journal Entry: Particulars Debit Credit Income Tax Expense 106630…
Step by step
Solved in 2 steps
- On May 1, 2021, AAA and BBB formed a joint operation to acquire and sell a special type of merchandise. The contractual arrangements provide that AAA is to manage the joint operation for a fee and that gain and losses are to be divided equally. On May 1, 2021, BBB invests cash of P52,000, which P50,000 was used to purchase merchandise. AAA incurs expenses amounting to P2,500. On May 20, one half of the merchandise was sold for P36,000 cash. In the books of BBB, the Investment in Joint Operation account on May 30, 2021 would show a balance of: 56,250 45,750 50,000 54,250In 2019, entity A sold goods to its subsidiaries (entities B and C) for P500,000 and P400,000, respectively. In 2019, entity A sold goods to its associates (entities D and E) for P50,000 and P40,000 respectively. On 31 December 2019 entities B, C, D and E owed entity A P200,000, P100,000, P20,000 and P10,000, respectively. The terms and conditions of the sales to entities B, C, D and E are the same as for sales to independent third parties, ie list price on 30 days’ interest-free credit. In 2019, entity A purchased raw materials from its owner (Mr. A) for P125,000. Mr. A supplies raw materials to entity A at a discount of 20 per cent on the price at which he supplies other customers that purchase similar quantities of raw materials. In common with other customers, Mr. A supplies entity A with raw materials on 30 days’ interest-free credit. On 31 December 2019 entity A reported that it had reimbursed Mr. A’s expenses of P400,000 for leisure trips. How much is the total amount of related…In 2021, Detroit transferred goods to a retailer on consignment. The goods cost P450,000 and normally are sold at a 40% markup on cost. Detroit paid P5,000 for the cost of the shipment while the retailer paid P3,800 for advertising and P2,800 for the cost of freight out. The parties agreed that Freeshop would reimburse the cost of advertising and freight paid by the retailer. In 2021, the retailer at the normal markup, sold 80% of the merchandise and the balance of the merchandise was returned to Detroit. The retailer withheld 15% commission from payment plus the amount reimbursable by the consignor. Determine the net income earned by the consignor. A.62,650B.421,800C.56,800D.405,000
- On January 30, 2021, XYZ Corporation, a non-VAT registered company, purchased from ABC Corporation, a VAT registered company, goods and paid a total amount P156,800, inclusive of VAT. on February 1, 2021, XYZ Corporation became liable to VAT. The goods were sold on February 28, 2021 for P280,000, VAT inclusive. Compute for the VAT payable P30,000 P13,200 P27,200 P16,800In 2020, HP Company transferred goods to a retailer on consignment. The goods cost P450,000 and normally are sold at a 40% markup on cost. GGG paid P5,000 for the cost of the shipment while the retailer paid P3,800 for advertising and P2,800 for the cost of freight out. The parties agreed that GGG would reimburse the cost of advertising and freight paid by the retailer. In 2020, the retailer at the normal markup, sold 80% of the merchandise and the balance of the merchandise was returned to AAA and paid a freight of P2,500. The retailer withheld 15% commission from payment plus the amount reimbursable by the consignor. How much is the consignment net income?On January 1, 2021, Globe Company sold a piece of machinery to Troll Company for P2,400,000. Because of the entity’s commitments to its customers to provide their needs for the next three years, Globe Company simultaneously leased back the machinery. The transfer of the asset to the buyer qualifies to be accounted for as a sale under IFRS 15. Information relating to this transaction follows:• Fair value of machinery- P2,200,000• Carrying amount of machinery- P1,700,000• Remaining useful life of the machinery- 8 years• Lease term- 3 years• Annual rent payable at beginning of each year, starting on January 1, 2021- P500,000• Market rate of interest- 10%• PV of an ordinary annuity of 1 at 10% for 3 periods is 2.4869• PV of an annuity due of 1 at 10% for 3 periods is 2.7355 What is the amount recorded by Globe Company for the right-of-use asset on January 1, 2021? (round off your final answer to the nearest peso value)
- On January 1, 2021, Smith Company sold a piece of machinery to Gaby Company for P1,900,000. Because of the entity's commitments to its customers to provide their needs for the next three years, Smith Company simultaneously leased back the machinery. The transfer of the asset to the buyer qualifies to be accounted for as a sale under IFRS 15. Information relating to this transaction follows: Fair value of machinery - P2,200,000 Carrying amount of machinery - P1, 700,000 Remaining useful life of the machinery - 8 years Lease term - 3 years Annual rent payable at the end of each year beginning, December 31, 2021- P500,000 Market rate of interest - 10% The present value of an ordinary annuity of 1 at 10% for 3 periods is 2.4869 The present value of an annuity due of 1 at 10% for 3 periods is 2.7355 1. How much is the gain on sale-leaseback? (round off your final answer to the nearest peso value)On January 1, 2021, Smith Company sold a piece of machinery to Gaby Company for P1,900,000. Because of the entity's commitments to its customers to provide their needs for the next three years, Smith Company simultaneously leased back the machinery. The transfer of the asset to the buyer qualifies to be accounted for as a sale under IFRS 15. Information relating to this transaction follows: Fair value of machinery - P2,200,000 Carrying amount of machinery - P1, 700,000 Remaining useful life of the machinery - 8 years Lease term - 3 years Annual rent payable at the end of each year beginning, December 31, 2021- P500,000 Market rate of interest - 10% The present value of an ordinary annuity of 1 at 10% for 3 periods is 2.4869 The present value of an annuity due of 1 at 10% for 3 periods is 2.7355 1. How much is the interest expense for 2021 on the lease liability relating to the right retained in the sale-leaseback transaction? (round off your final answer to the nearest peso value)…On January 1, 2021, Globe Company sold a piece of machinery to Troll Company for P1,900,000. Because of the entity’s commitments to its customers to provide their needs for the next three years, Globe Company simultaneously leased back the machinery. The transfer of the asset to the buyer qualifies to be accounted for as a sale under IFRS 15. Information relating to this transaction follows:• Fair value of machinery- P2,200,000• Carrying amount of machinery- P1,700,000• Remaining useful life of the machinery- 8 years• Lease term- 3 years• Annual rent payable at the end of each year, starting on December 31, 2021- P500,000• Market rate of interest- 10%• PV of an ordinary annuity of 1 at 10% for 3 periods is 2.4869• PV of an annuity due of 1 at 10% for 3 periods is 2.7355 How much is the gain on sale-leaseback? (round off your final answer to the nearest peso value)
- On January 1, 2021, Globe Company sold a piece of machinery to Troll Company for P1,900,000. Because of the entity’s commitments to its customers to provide their needs for the next three years, Globe Company simultaneously leased back the machinery. The transfer of the asset to the buyer qualifies to be accounted for as a sale under IFRS 15. Information relating to this transaction follows:• Fair value of machinery- P2,200,000• Carrying amount of machinery- P1,700,000• Remaining useful life of the machinery- 8 years• Lease term- 3 years• Annual rent payable at the end of each year beginning, December 31, 2021- P500,000• Market rate of interest- 10%• The present value of an ordinary annuity of 1 at 10% for 3 periods is 2.4869. • The present value of an annuity due of 1 at 10% for 3 periods is 2.7355 How much is the interest expense for 2021 on the lease liability relating to the right retained in the sale-leaseback transaction? (round off your final answer to the nearest peso value)On January 1, 2021, Globe Company sold a piece of machinery to Troll Company for P1,900,000. Because of the entity’s commitments to its customers to provide their needs for the next three years, Globe Company simultaneously leased back the machinery. The transfer of the asset to the buyer qualifies to be accounted for as a sale under IFRS 15. Information relating to this transaction follows:• Fair value of machinery- P2,200,000• Carrying amount of machinery- P1,700,000• Remaining useful life of the machinery- 8 years• Lease term- 3 years• Annual rent payable at the end of each year beginning, December 31, 2021- P500,000• Market rate of interest - 10%• PV of an ordinary annuity of 1 at 10% for 3 periods is 2.4869• PV of an annuity due of 1 at 10% for 3 periods is 2.7355 How much is the lease liability recorded on January 1, 2021?In 2021, a merchandise was sold on instalment basis by ONB for P80, 000 at a gross profit of 25% on cost. During this year, a total of P42, 500, including interest of P12, 500 was collected on this contract. In 2021, no collection was made on this sale, and the merchandise was repossessed. The fair value of the merchandise is P34, 000. Reconditioning cost amounts to P4, 000. What is the gain (loss) on reposition? a. 10, 000 b. (6, 000) c. (14, 000) d. (10, 000)