Problem 4: Ocean Company recently acquired several items of property, plant and equipment. The transactions are as follows: 1. Purchases a building for P1, 000, 000 in cash and 50, 000 shares of Ocean company with P100 par value which sold for P120 on transaction date 2. Received a parcel of land located in Davao City from a philanthropist as an inducement to locate a plant in the city. The land has a fair value of P1, 500, 000. 3. Acquired a machinery for cash. The machinery was priced at P800, 000 and a 5% cash discount is allowed 4. Acquired an equipment for P200, 000 by issuing a 60-day, 12% note. Required: Determine the cost of the ff: Building Land Machinery Equipment_ what is the rule in solving the problem?

Problem 4: Ocean Company recently acquired several items of property, plant and equipment. The transactions are as follows: 1. Purchases a building for P1, 000, 000 in cash and 50, 000 shares of Ocean company with P100 par value which sold for P120 on transaction date 2. Received a parcel of land located in Davao City from a philanthropist as an inducement to locate a plant in the city. The land has a fair value of P1, 500, 000. 3. Acquired a machinery for cash. The machinery was priced at P800, 000 and a 5% cash discount is allowed 4. Acquired an equipment for P200, 000 by issuing a 60-day, 12% note. Required: Determine the cost of the ff: Building Land Machinery Equipment_ what is the rule in solving the problem?

Name: 18:02 O 0 s G #ilו. G1ןמ*:4G+bartleby.com/questions-(27QSEARCH ASK턺 C
Uploaded: 2024-03-04T10:43:15.000Z
Channel: Bartleby
Description: 18:02 O 0 s G #ilו. G1ןמ*:4G+bartleby.com/questions-(27QSEARCH ASK턺 CHATVX MATH :Problem 4:Ocean Company recently acquired severalitems of property, plant and equipment.The transactions are as follows:1. Purchases a building for P1, 000, 000 incash

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter24: Bankruptcy, Reorganization, And Liquidation

Section: Chapter Questions

Problem 5SP

See similar textbooks

Similar questions

5. Use the following information for the next three (3) questions: On July 1, 2021 Captain Universe Company declared as property dividends 10,000 shares held as investment in associate with carrying amount of P4,000,000. Cost of disposal is immaterial. Information on fair values is shown below: Date Fair Value July 1, 2021 P3,200,000 December 31, 2021 4,400,000 February 1, 2022 3,800,000 Questions: The entries on July 1, 2021 include all of the following except Group of answer choices A debit to retained earnings for P3,200,000 A debit to impairment loss for P800,000 A debit to non current asset held for disposal to owners for P4,000,000 A credit to property dividends payable for P3,200,000
S Ltd is considering buying the business of R Ltd the final accounts of which for the last 3years were as follows: MGC-FN-705 Page 5 of 5Profit and loss account for the 3 years ended 31st Dec (Rs.)Particulars 2011 2012 2013Sales 200,000 190,000 224,000Material Consumed(100,000) (95,000) (112,000)Business Exp (80,000) (80,000) (82,000)Depreciation (12,000) (13,000) (14,000)Net Profit 8000 2000 16,000 Balance sheet as at 31st Dec (Rs.)Particulars 2010 2011 2012 2013Fixed Assets(at cost) 100,000 120,000 140,000 180,000Less: Depreciation (70,000) (82,000) (95,000) (109,000)Net fixed Assets 30,000 38,000 45,000 71,000Stock in Trade 16,000 17,000 18,500 21,000Sundry Debtors 21,000 24,000 26,000…
15. On January 1, 20x5, Paz acquired 80% of Shey outstanding ordinary shares for P950,000. Paz uses the cost method to record the investment account. The statement of financial position of Paz and Shey on December 31, 20x1 are as follows: Paz Shey Cash 2,500,000 1,000,000 Accounts Receivable 500,000 250,000 Inventory 800,000 200,000 Investment in Shey 950,000 - Land 2,000,000 - Building – net…
16. On January 1, 20x5, Paz acquired 80% of Shey outstanding ordinary shares for P950,000. Paz uses the cost method to record the investment account. The statement of financial position of Paz and Shey on December 31, 20x1 are as follows: Paz Shey Cash 2,500,000 1,000,000 Accounts Receivable 500,000 250,000 Inventory 800,000 200,000 Investment in Shey 950,000 - Land 2,000,000 - Building – net…
Q5. PK Ltd acquires a block of land on 1 January 2017 for $200 000 in cash. Due to increased housing demand in the area, the land has a fair value of $290 000 on 1 January 2018.However, the market value falls to $140 000 on 30 June 2019. Write the journal entries needed.
Eure Co. acquired a machine in exchange for 10,000 of its own shares with par value of 10. Per share and fair value of 130 per share. Case 1: the cash selling price of the machine is 1,400,000. Provide the journal entry. Case 2: the cash selling price of the machine is not determinable. Provide the journal entry.
111. On June 30, 20X1, ABC Corp exchanged 6,000 shares of XYZ Company P10 par value ordinary shares for patent owned by McKing. The XYZ shares was acquired in 20X1 at a cost of P160,000. At the exchange rate XYZ shares had a fair value of P45 per share, and the patent had a carrying amount of P320,000 in McKing's books. ABC Corp should record the patent at: 320,000 270,000 180,000 160,000
38. On October 1, 2021, a company declared to its shareholders a property dividend in the form of pieces of equipment with carrying amount of P960,000 (acquired on October 1, 2015 for P2,400,000). The dividends are for distribution on January 31, 2022. The company provided the following estimate of the asset’ fair value: October 1, 2021 P1,050,000 December 31, 2021 1,020,000 January 31, 2022 1,110,000 What amount will be reported in 2021 statement of profit or loss as a result of the foregoing transactions?
L2-4 Awe Company pays CU500,000,000 for a 30% interest in Groy Company on July 1, 19x2 when the book value of Groy Company's net assets equals fair value. Awe Company amortizes any goodwill from this investment over 20 years. Information related to Groy Company is as follows: 31 Desember 19x1 31 Desember 19x2 Share capital, nominal IDR 1,000 Rp600.000.000 Rp600.000.000 Retained earning 400.000.000 500.000.000 Total Shareholders' Equity 1.000.000.000 1.100.000.000 Net profit earned during the year 19x2 200.000.000 Dividend for the year 19x2 (paid on March 1 of Rp. 50,000,000 and September 1 of Rp. 50,000,000) 100.000.000 Required: calculate Awe Company's revenue from Groy Company for the year 19x2
Show the complete solution. THank you On January 1, 20X1, P Company (PC) purchased 80% of the outstanding shares of S Company (SC) at the cost of P700,000. On that date, SC had P300,000 and P500,000 capital stock and retained earnings, respectively. The non-controlling interest (NCI) is measured on a fair-value For 20X1, PC had a comprehensive income (CI) of P300,000 and paid dividends of P100,000. On the other hand, SC reported a CI of P150,000 and paid dividends of P50,000. All of the assets and liabilities of S Company had book values that approximately equal to their respective market values. On December 31, 20X1, PC sold a piece of equipment with a book value of P30,000 to SC for P25,000. The gain on the sale is included in the CI of PC indicated above. The equipment has a 10-year useful life. It has been used for the past five (5) years before the date of acquisition. Required: Prepare the journal entries that both companies should make for the year 20X1. Allocate the…
26 Sniper Company purchased on January 2, 2019, a new set of furniture and fixtures by issuing 5,000 of its P100 par value shares (FV on this date is P110), in addition to P200,000 cash paid in connection to purchase. The P200,000 is broken as follows: Freight and delivery charges P80,000 Non-refundable purchase taxes 70,000 Furniture cover* 50,000 Total P200,000 *the furniture cover was requested by the company president because he wanted his office furniture looks good. The cover does not enhance the asset. The furniture and fixture are depreciated using 1.5 declining balance with an estimated useful life of four years and salvage value of P80,000. What is the amount of depreciation expense – furniture and fixtures should Sniper Company recognized in its December 31, 2022 income statement?
On April 1, 20x8 Phar acquired 90% of the Equity Shares of Star. Star retained profits at the date of acquisition were $ 2, 640,000. Balance Sheet as at 31 March 20x9. Phar Star $000 $000 $000 $000 Non-Current Assets PPE 2,544 2,388 Intangible Software - 2,520 Investments-Equity in Star 5, 036 - Others 214 252 7,794 5,160 Current Assets Inventories 863 672 Receivables 629 394 Stars Current Account 90 - Cash 24 - 1,606 1,066 9,400 6,226 Capital and Reserves Equity shares of $1 each 2,400 1,800 Share Premium 2,400…