Problem 1: Susan Company experienced the ff. transaction during the current year. 1. Purchased machinery for P500, 000 cash. 2. Purchased land and building for P5,500, 000 cash, including an appraiser's fee of P100,000. An appraisal indicated fair value as follows. Land 2,000,000
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- Jada Company had the following transactions during the year: Purchased a machine for $500,000 using a long-term note to finance it Paid $500 for ordinary repair Purchased a patent for $45,000 cash Paid $200,000 cash for addition to an existing building Paid $60,000 for monthly salaries Paid $250 for routine maintenance on equipment Paid $10,000 for major repairs Depreciation expense recorded for the year is $25,000 If all transactions were recorded properly, what is the amount of increase to the Property, Plant, and Equipment section of Jadas balance sheet resulting from this years transactions? What amount did Jada report on the income statement for expenses for the year?Jada Company had the following transactions during the year: Purchased a machine for $500,000 using a long-term note to finance it Paid $500 for ordinary repair Purchased a patent for $45,000 cash Paid $200,000 cash for addition to an existing building Paid $60,000 for monthly salaries Paid $250 for routine maintenance on equipment Paid $10,000 for extraordinary repairs If all transactions were recorded properly, what amount did Jada capitalize for the year, and what amount did Jada expense for the year?Capstone Consulting Services acquired land 5 years ago for $200,000. Capstone recently signed an agreement to sell the land for $375,000. In accordance with the sales agreenwnt, the buyer transferred $375,000 to Capstone’s bank account on February 20. How would elements of the accounting equation be affected by the sale?
- For each of the following transactions, state whether the cost would be capitalized (C) or recorded as an expense (E). A. Purchased a machine, $100,000; gave long-term note B. Paid $600 for ordinary repairs C. Purchased a patent for $45,300 cash D. Paid $200,000 cash for addition to old building E. Paid $20,000 for monthly salaries F. Paid $250 for routine maintenance G. Paid $16,000 for major repairsFor each of the following situations write the principle, assumption, or concept that justifies or explains what occurred. A. A landscaper received a customers order and cash prepayment to install sod at a house that would not be ready for installation until March of next year. The owner should record the revenue from the customer order in March of next year, not in December of this year. B. A company divides its income statements into four quarters for the year. C. Land is purchased for $205,000 cash; the land is reported on the balance sheet of the purchaser at $205,000. D. Brandys Flower Shop is forecasting its balance sheet for the next five years. E. When preparing financials for a company, the owner makes sure that the expense transactions are kept separate from expenses of the other company that he owns. F. A company records the expenses incurred to generate the revenues reported.Johnson, Incorporated had the following transactions during the year: Purchased a building for $5,000,000 using a mortgage for financing Paid $2,000 for ordinary repair on a piece of equipment Sold product on account to customers for $1,500,600 Purchased a copyright for $5,000 cash Paid $20,000 cash to add a storage shed in the corner of an existing building Paid $360,000 in monthly salaries Paid $25,000 for routine maintenance on equipment Paid $110,000 for major repairs If all transactions were recorded properly, what amount did Johnson capitalize for the year, and what amount did Johnson expense for the year?
- Johnson, Incorporated, had the following transactions during the year: Purchased a building for $5,000,000 using a mortgage for financing Paid $2,000 for ordinary repair on a piece of equipment Sold product on account to customers for $1,500,600 Paid $20,000 cash to add a storage shed in the corner of an existing building Paid $360,000 in monthly salaries Paid $25,000 for routine maintenance on equipment Paid $110,000 for extraordinary repairs Depreciation expense recorded for the year is $15,000. If all transactions were recorded properly, what is the amount of increase to the Property, Plant, and Equipment section of Johnsons balance sheet resulting from this years transactions? What amount did Johnson report on the income statement for expenses for the year?A company purchased a building twenty years ago for $150,000. The building currently has an appraised market value of $235,000. The company reports the building on its balance sheet at $235,000. What concept or principle has been violated? A. separate entity concept B. recognition principle C. monetary measurement concept D. cost principleAt the beginning of Year 1, Copeland Drugstore purchased a new computer system for $250,000. It is expected to have a five-year life and a $40,000 salvage value. Record the purchase of the computer system and the depreciation expense for the first year under straight-line and double-declining-balance methods in a financial statements model. (In the Cash Flow column, indicate whether the item is an operating activity (OA), an investing activity (IA), a financing activity (FA) and net change in cash (NC). Enter any decreases to account balances and cash outflows with a minus sign. Not all cells in the "Statement of Cash Flows" column may require an input - leave cells blank if there is no corresponding input needed.)
- A vacant lot is acquired for $83,000 cash. Later the owner borrows $52,000 against the land. Three years later, the lot is then sold for $127,000 in cash. After receiving the $127,000 sales price in cash, the seller pay off the loan of the $52,000 owed. What is the effect of the $52,000 payment of the loan on the total amount of the seller’s (1) assets, (2) liabilities, and (3) stockholders’ equity? Assets increase $127,000; liabilities decrease $52,000; Stockholders’ equity increases $44,000 The payment of the loan has no net effect on any of the categories Assets decrease $52,000; liabilities decrease $52,000; Stockholders’ equity increases $44,000 Assets decrease $52,000; liabilities decrease $52,000; Stockholders’ equity is unchangedJada Company had the following transactions during the year. If all transactions were recorded properly, determine whether each transaction is capitalized or expensed. Choose: capitalized or expensed for 1-10. 1. Purchased a machine for $500,000 using a long-term note to finance it. [ Select ]["expensed", "capitalized"] 2. Paid $500 for ordinary repair. [ Select ]["expensed", "capitalized"] 3. Purchased a patent for $45,000 cash. [ Select ]["expensed", "capitalized"] 4. Paid $200,000 cash for addition to an existing building. [ Select ]["expensed", "capitalized"] 5. Paid $60,000 for monthly salaries. [ Select ]["expensed", "capitalized"] 6. Paid $2,500 for routine maintenance on equipment. [ Select ]["expensed", "capitalized"] 7. Paid $10,000 for extraordinary repairs. [ Select ]["expensed", "capitalized"] 8. Paid shipping of $1,000 to get the machine to the business. [ Select ]["expensed", "capitalized"] 9. Paid installation fees for the machine of…in Year 1, Evelyn’s Cookware Company sold land for $208,000 cash. The land had originally cost $127,200. Also, Evelyn’s sold inventory that had cost $64,000 for $98,000 cash. Operating expenses amounted to $28,200. In a multi step income statement what would the "Gain on the sale of land" be?? The answer isn't 81,000 pls help