Q.3.2 If the balance for the above contract asset/contract liability for Pocket Projects Ltd on 30 November 2020 was R700 000, show how the entity would disclose these amounts in their financial statements for the year ending 30 November 2021.
Q: SM Company acquired rights to a patent under a licensing agreement that required an advance royalty…
A: Prepaid expenses are those expenses which are related with future period of time, but payment has…
Q: On December 31, 2020, Rice, Inc. authorized Graft to operate as a franchisee for an initial…
A: Unearned Franchise Fees:-It is an amount for which the company has performed services but does not…
Q: Covidibidapdap received PhP80 000 in cash on December 2020 from Romeo Limited in return for having…
A: Ans. When a service is executed or work is performed but the consideration has not been received…
Q: a) Using the above data, compute the gross profit to be recognised for each of the three years,…
A:
Q: Problem 1. Jhun Co. recognizes construction revenues and expenses using the percentage of completion…
A: Percentage of completion method: It is a method in accounting which reports the expenses and…
Q: Good morning 5 de mayo 8:48
A: Franchise:Franchise is a type of business organization in which the owner (franchiser) grants legal…
Q: 8. On January 1, 2018, Liquid Company accepted a long-term construction project for an initial…
A: Revenue earned from state and local taxes imposed on transactions happening during the eligibility…
Q: 23. On January 1, 2020, ENERVATE TO WEAKEN Company had the following borrowings made for general…
A: Borrowing cost means where the assets like building , take substantial time to build , then interest…
Q: Entity A is a construction company listed in Hong Kong. It commenced a contract to build a bridge…
A: Recognition on work certified basis means that a company used to recognize the revenue and expenses…
Q: In 2019, PJD Construction Corporation began construction work under a 3-year contract. The contract…
A: In the case of the percentage-of-completion method/overtime for financial accounting purposes.…
Q: . What amount of liability from lawsuit should be reported on December 31, 2021? a. 3,500,000 b.…
A: A liability is a debt that a person or company owes to another party, usually in the form of money.…
Q: 3. On January 1, 2019, an entity acquired an equipment for P1,000,000 payable in 5 annual…
A: Here discuss about the purchase of the equipment and its payment for the equal installment for the…
Q: On January 1, 2020, an entity granted a franchise to a franchisee. The franchise agreement requires…
A: Revenue is recognized on fulfilling the performance obligation. The royalty is recognized on making…
Q: 4. For the year ended December 31, 2008, Carter would recognize gross profit from contract # 3814 in…
A: Under percentage of completion method revenue is calculated on the basis of the percentage of cost…
Q: Assume on December 1, 2017, a company borrows funds to purchase equipment. The company will make the…
A: Solution: On Dec 31, 2018, the long term liabilities will be = Principal amount due in 2020 and 2021
Q: QUESTION 1 The transactions related to liabilities by SNM Bhd (SNM) for the year 2020 are as…
A: Journal entry is the entry which is recorded at the time of the business transaction take place.…
Q: a) Using the above data, compute the gross profit to be recognized for each of the three years,…
A:
Q: 1. On December 31, 2020, Rice, Inc. authorized Graft to operate as a franchisee for an initial…
A: “Since you have posted a many questions, we will solve first question for you. To get the remaining…
Q: On January 1, 2018, DMCI Company started the construction of a building at a fixed contract price of…
A: Gross profit is the difference between the total revenues and cost of goods sold. The financial…
Q: 29. On June 30, 2021, Mill Corp. incurred a 100,000 net loss from disposal of a business segment.…
A: A financial reporting period that is less than a full fiscal year is referred to as an interim…
Q: On January 1, 2018, DMCI Company started the construction of a building at a fixed contract price of…
A: Correct option is C. 150,000 Realised gross profit for the year ended dec. 31, 2019 is 150,000
Q: Illustrative Problem 2: On May 1, 2020, Pepper Company issued a P 900,000, 2-year promissory note to…
A: A Note Payable is Classified as Current Liability if it is payable within 1 year from the balance…
Q: At January 1, 2021, Brant Cargo acquired equipment by issuing a five-year, $150,000 (payable at…
A: Prepare the journal entry for Brant Cargo to record the purchase of the equipment. Date…
Q: What is the contract revenue for 2020? 2. What amount should be reported as deferred contract…
A: Formula: Deferred contract revenue on December 31, 2020 = Sales revenue - Contract revenue
Q: 9. Dynamite Company acquired rights to a patent under a licensing agreement that required an advance…
A: Prepaid expenses are those expenses which are related with future period of time but amount has been…
Q: what si the amount of revenue from long-term contract for the year ended December 31,2022? what is…
A: Revenue recognition: Revenue recognition is the principle that provides specific conditions under…
Q: . What is the gain on remeasurement to equity to be recognized for 2021? a. 1,500,000 b. 4,500,000…
A: Therefore, option (a) is the correct answer.
Q: 1. What amount should be recognized as investment income for 2021 as a result of the investment? a.…
A: Investment refers to those mechanism which is used by the company for the purpose of generating…
Q: A company has entered a construction contract on 1st January 2019. The contract will take 2 years to…
A: Formula: Amount due from customer = Total contract price x Percentage of work completed.
Q: The following events occurred during the year ended 30 June 2020 for Electrical Limited. On 1 June…
A: Current liability of the company that are expected to be paid out within 12 months from the…
Q: Situation 1 The entity had borrowings on January 1, 2020. Borrowings ware made from general purposes…
A:
Q: [A] The franchisor will initially recognize P20,000 contract asset. [B] The franchisor will…
A: Franchise Agreement To recognize the revenue in the franchise agreement either in the point of time…
Q: Omni Consumer Products Ltd. ("Omni") revealed the following information for the years er December…
A: Accounts receivable turnover ratio states the effectiveness of the company in collecting the…
Q: On 1 July 2020, Martin plc received a government grant of £120,000 to employ 10 young people on…
A: (1). As per IAS 20, a government grant is recognized only when there is reasonable assurance that…
Q: On October 10, 2020, Executor Co. entered into a contract with Belisle Inc. to transfer Executor's…
A: Journal entries are the transactions that are recorded in the primary book. They are chronological…
Q: n June 30, 2021, Line Company incurred a P100,000 net loss from disposal of a business segment.…
A: Solution: Determination of net income or loss for the six-month interim period is based on the…
Q: B. An entity provided the following information during the current year: January 1 6,000,000…
A: Entry:- OCI Dr. 500000 to Plan assets 500000
Q: Among the account balance of Jeffrey Corporation at December 31, 2009 are the following: Patent…
A: A patent is an intangible asset shown on the balance sheet. It doesn't have any physical substance…
Q: a fair value of P5,960,000. What is the compound journal entry to update the carrying value of the…
A:
Q: Compute the capitalizable borrowing cost. * On January 1, 2022, Entity A had the following general…
A: Particulars Loan Amount (A) Rate (B) Interest Amount (A*B) 12% Short Term note 15,000,000…
Q: Assume on December 1, 2017, a company borrows funds to purchase equipment. The company will make the…
A: Answer: Long term liabilities are the liabilities which are overdue to be paid over the period of 12…
Q: January 17, 2020, Roddick Company incurred $172,000 in successfully defending one of its patents in…
A: Depreciation or amortization is a reduction in the value of assets due to the usage of that asset.…
Q: 2. VULTURE Company requires refundable advance payments with special orders for machinery…
A: Current liabilities: Liabilities that have to be paid within one year or one operating cycle,…
Q: A) Prepare an amortization schedule for the lessor for 2021 and 2022. B) Prepare the journal entries…
A: A lease is an agreement describing the terms under which one business agrees to rent an asset or…
Q: 8. AYALA LAND,INC. began work on a P70 million contract in 2019 to construct an office building.…
A:
Q: Zoro Company enters into a contract to sell Product A and Product B on July 1, 2020 for an upfront…
A: The standalone selling price is the price on which a company can sell the product individually to…
Q: On December 1, 2020, ABC Co. grants customer a license to use ABC’s patented technology over a…
A: Given information is: On December 1, 2020, ABC Co. grants customer a license to use ABC’s patented…
Q: On July 1, 20x1, ABC Construction Co. enters into contract with a customers for the construction of…
A: Contract Price= P60,00,000 Estimated Total Cost= P40,00,000 Actual cost Incurred=P10,20,000
Q: Ltd. signed a three-month 12% per annum note payable to purchase a new equipment costing $48,000.…
A: Current liability of the company that are expected to be paid out within 12 months from the…
Q.3.2 If the balance for the above contract asset/contract liability for Pocket Projects Ltd on 30 November 2020 was R700 000, show how the entity would disclose these amounts in their financial statements for the year ending 30 November 2021.
Step by step
Solved in 2 steps
- I. What is the revenue to be recognized by Entity A for the year ended December 31, 2020?A. P 585,000B. P 469,000C. P 424,000D. P 532,000 II.1) How much is the transaction price when the contract was entered into on July 1, 2021? 20,825,000 20,780,000 20,390,000 20,705,000WITH SOLUTION-COMPUTATION 63. On July 1, 2019, an entity leased an equipment to a lessee under a 3-year operating lease. Total rent for the lease term is P3,600,000, payable P50,000 monthly for the first lease year, P75,000 monthly for the second lease year and P175,000 monthly for the third lease year. All payments were made when due. On June 30, 2021, what amount should be reported as accrued rent receivable?a. 2,100,000b. 1,200,000c. 900,000d. 0
- On Jan. 1, 2020, the entity started the preparation of its buildingconstruction. On the same date, it specifically acquired a loan forthe construction. The entity spent P3,000,000 on Jan. 1, 2020 and P5,000,000 on Mar.31, 2021. The loan has a principal amount of P10,000,000, interest of 5% dueevery Jan. 1, maturity date of Jan. 1, 2023, net proceeds ofP9,732,700, and an effective interest rate of 6%. While not yet paidout for the construction, the amount borrowed was temporarilyinvested. Investment income for the two years totaled P480,000. 5. How much is the total capitalizable cost as of Dec. 31, 2021?Covidibidapdap received PhP80 000 in cash on December 2020 from Romeo Limited in return for having provided financial advice during the 2020 financial year. Required: Explain, with reference to the relevant definitions, if a liability can be recognized based on the case. B. Briefly identify whether and/ or how your answer would change if the cash received had been received for financial advice to be provided in the 2021 financial year.1. What amount should be recorded as accrued liability on December 31, 2021 in relation to this event? A. 1,500,000 B. 2,500,000 C. 1,000,000 D. 0 E. None of them
- The insurance total of R9000 on 29 February 2020, the end of the financial year, included a premium of R3000 that was paid for the period 01 December 2019 to 30 November 2020. Which of the following represents the insurance expense for the year ended 29 February 2020? A) R2 250 B) R9 000 C) R6 000 D) R6 750Honest Corporation carried a provision of P1,500,000 in the draft financial statements for the year ended December 31, 2021 in relation to a labor case. The case was settled for P2,500,000 on February 28, 2022, a week before the financial statements for the year ended December 31, 2021 were authorized for issue. What amount should be recorded as accrued liability on December 31, 2021 in relation to this event? A. 1,500,000 B. 2,500,000 C. 1,000,000 D. 0 E. None of themAssume on December 1, 2017, a company borrows funds to purchase equipment. The company will make the following principal payments: 2018, $5,200 2019, $3,400 2020, $2,207 2021, $1,434 On December 31, 2018, the total long term liabilities will be $______
- TCA Company issued on June 30, 2022 a P 1,200,000, 10% promissory note due on June 30, 2025 for the purchase of an equipment. Equal principal amount plus interest on the outstanding balance of the principal are payable annually every June 30 starting June 30,2023. The company’s reporting date is every December 31. On December 31, 2022, the amount TCA Company will report in the non-current liabilities in its Statement of Financial Position is? On December 31, 2023, the amount TCA Company will report in the current liabilities in its Statement of Financial Position is?2. What amount should be reported as lease liability on December 31,2020? ₱ 4,680,000 ₱ 2,800,000 ₱ 4,500,000 ₱ 2,912,000*see attached What amount should RIS report as a liability at December 31, 2021?a. P 0b. P 26,000c. P 38,000d. P 116,000
