Seoli owned a 20% royalty interest in an oil well. Seoli received royalty payments on January 31 for the oil sold between the previous June 1 and November 30, an on July 31 for oil between December 31 and May 31. Production revealed the foll
Q: The GOOD SHEPHERD Foundation, a nonprofit organization, had the following cash contributions and exp...
A: Cash Flow Statement - Under Cash Flow, there are three types of activities involved - Operating Acti...
Q: АВС Со (carrying amounts) (fair values) 9,600,000 XYZ Inc Combined entifiable assets 6,400,000 16,00...
A: In case of acquisition, goodwill to be recognise in the books of account if purchase consideration i...
Q: Which of the following is not a true statement with regard to a merger? a. one entity continues to ...
A: Merger refere to the unity of two companies to a single company under one name. It is formed as a se...
Q: In 2018, the Board of Trustees of Ayala Foundation designated an amount of current funds for college...
A: solution concept current unrestricted funds current unrestricted funds means the fun...
Q: BC and XYZ Inc had the following balance sheets on December 31, 2021: (see image below) On January 1...
A: Solution given Purchase price 40000 Fair value of current assets of XYZ 26000 Fair v...
Q: XYZ Co had the following accounts at the time it was acquired by ABC Inc (see image below). ABC pai...
A: Fair value of net identifiable assets = Fair value of identifiable assets - Fair value of identifiab...
Q: Repeat the requirements for part (a), assuming that Bonita Company has no reliable data with which t...
A: The question is based on the concept of Financial Accounting.
Q: High-Low Method, Cost Formulas The controller of the South Charleston plant of Ravinia, Inc., monito...
A: High low method is a method of cost estimation under which fixed costs and variable cost per unit is...
Q: Question 1. A project costs 5,00,000 and yields annually a profit of * 75,000 after depreciation @ 1...
A: Net cash inflows means amount of cash profits that is being received on account of investment in par...
Q: Mielé Appliances estima warranty payablé of Duri 2017, Miele made sales of $100000 and expects produ...
A:
Q: The following data are provided to you by the 2nd Department of Smart Company Quantity data: Beginni...
A:
Q: BC and XYZ Inc hahow much is the Goodwill arising from this Business Combination? *d the following b...
A: solution given Purchase price 40000 Fair value of current assets of XYZ 26000 Fair v...
Q: 2. Add the values in cells D1, D2, and G3. 3. Multiply the values in cell D2 and E2 and add the valu...
A: Excel is a tool for calculate, manipulate, organize, data into meaningful and required manner. It is...
Q: Miss A has P300,000 annual income while Miss B has P800,000 annual income. Explain the ability to pa...
A: As per ability to pay theory, a taxpayer who earns more income has the ability to pay more tax , no...
Q: On December 1, 2021, ABC Company acquired all the assets and liabilities of XYZ Inc. issuing 100,000...
A: The fair value of net-assets acquired is calculated by subtracting total liabilities from the total ...
Q: What is the amount of service department cost allocated to P1 and P2 using the direct method
A: solution concept Direct method of service cost allocation Direct method of service c...
Q: On January 1, 2021, ABC Co. acquired all of the identifiable assets and assumed all of the liabiliti...
A: SOLUTION GOODWILL IS AN INTANGIBLE ASSETS THAT IS ASSOCIATED WITH THE PURCHASE OF ONE BY ANOTHER.
Q: 2017 Feb 3 Purchased equipment for $20000, signing a six-month, 9% note payable. Recorded the week's...
A: Journal is a book in which all business transactions are recorded in this book first, therefore this...
Q: Arrangement of the Statement of Earnings Kim Renovation Inc. renovates historical buildings for com...
A: Under single-step statement of earnings all revenues are grouped together and all expenses are toget...
Q: XYZ Co had the following accounts at the time it was acquired by ABC Inc (see image below). ABC paid...
A: Cost of acquisition means total expenses incurred by entity to acquire new business or assets. cost ...
Q: The order in the accounts are listed in the chart of accounts is a. assets, liabilities, revenues,...
A: The order for chart of accounts should be same as they are presented in the financial statements. It...
Q: SUPREME, a private not-for-profit fraternal organization, should prepare a statement of finandal pos...
A: Financial statements are those statements and reports which are prepared at the end of accounting pe...
Q: 16. A source document prepared by the seller that lists the the a. sales invoice. b. purchase invoic...
A: solution note Dear student as per the Q&A guideline we are required to answer the first question...
Q: places and "Percentage" answers to 1 decimal place and and other answers to the nearest whole dollar...
A: The answer is stated below:
Q: Diamond Platinum Silver RM RM RM 8,200.00 Selling price per unit Variable costs per unit: 6,500.00 6...
A:
Q: ABC and XYZ Inc had the following balance sheets on December 31, 2021: (see image below) On January ...
A: The company ABC has purchased all of XYZ Inc’s Common Shares for P40,000 in cash. The acquisition co...
Q: "As of today, Americans live on average 20 more years after retiring, which calls for well-designed ...
A:
Q: ===== ==== Test I: Identification: Identify the correct and complete answer on the question provided...
A: Assets includes all type of rights and resources being held by the business. It will include current...
Q: Centurion Company had the following accounts and balances at December 31: Account Debit Credit $ 11,...
A: Formula to calculate Net Income: Net Income = Revenue - Expenses
Q: 9. ABC paid finder's fees of P80,000, legal fees of P26,000, audit fees related to stock issuance of...
A: solution concept as per the provision of PFRS 3 The direct and indirect cost related to business acq...
Q: On December 1, 2021, ABC Company acquired all the assets and liabilities of XYZ Inc. issuing 100,000...
A: Purchase consideration for business combination = Fair value of shares of ABC Company issued ...
Q: QUESTION THREE MDAR Retailer Trial Balance as at 31 December 2011 Dr. Cr. $ $ Discount ...
A: Income statement is one of the financial statement which shows all incomes and all expenses of the b...
Q: The petty cahs fund is $800 On September 5, the petty cash fund needed replenishment, and the follo...
A:
Q: Explain and provide two examples of quick assets.
A: Quick assets are those assets which can be converted into cash easily or they are already in a cash ...
Q: Flexible Budget Application The polishing department of Taylor Manufacturing Company operated during...
A: The variance is the difference between standard and actual production of the business.
Q: Required information [The following information applies to the questions displayed below.] The follo...
A: The bank reconciliation statement is prepared to equate the balances of cash book and passbook with ...
Q: X Company, a manufacturer, incurred the following costs in 2021: Selling costs $5,802 Factory superv...
A: Product Cost - Product Cost is the cost incurred by the organization for the product of the entity. ...
Q: Required information Use the following information for the Exercises below. (Algo) 1 [The following ...
A: >Process costing includes calculation of Equivalent units and cost per equivalent units. >...
Q: PLKO Co. factored P160,000 accounts receivable to NCD Financing Corp on a with recourse basis on Jan...
A: Factoring is the facility wherein the company sells its account receivable to third party called fac...
Q: Maggie Vitteta, single, works 30 hours per week at $14.00 an hour. How much is taken out for federal...
A: Here asking about to calculate the Federal Income taxes using the withhold allowance for single tax ...
Q: SOUND CORE WIRELESS sells a variety of mobile telephone accessories including several brands of Wi...
A: Perpetual Inventory System – Under Perpetual inventory system on every sales transaction cost of goo...
Q: Grouper had in beginning inventory 2,320 CDs with a unit cost of $7. During March, Grouper made the ...
A: FIFO: FIFO stands for First-In, First-Out. In this method inventory purchased first will be sell ou...
Q: Марlе llion, capital assets of $1,126.7 million, and other assets totalling $ llion. Current liabili...
A: Accounting equation refers to the equation which states the assets, owners equity and the liabilitie...
Q: Required information Skip to question [The following information applies to the questions display...
A: Calculation of the amount of service department cost allocated to P1 and P2 using step method: De...
Q: A company's balance sheet shows: cash $30,000, accounts receivable $36,000, equipment $62,000, and e...
A: Introduction:- Balance sheet shows financial position of the company. The following accounting equa...
Q: If you become aware of a breach or violation, you should
A: Breach or violation of the terms and conditions by the employee is a commit of fraud or revealing th...
Q: Repeat the requirements for part (a), assuming that Bonita Company has no reliable data with which t...
A: The question is based on the concept of Financial Accounting.
Q: n 30 June 2016, Cameron Clothing purchased $10000 of inventory on a one-year, 10% note yable.
A: Solution: Interest is accrued from the date of issuance of Note till the date of adjusting entries. ...
Q: Conts XYZ Company prepares monthly interim financial statements. The company needs to estimate the m...
A:
Q: Halogen Laminated Products Company began business on January 1, 2021. During January, the following ...
A: Journal entries represents the initial reporting of the transactions in the books of accounts. These...
Seoli owned a 20% royalty interest in an oil well. Seoli received royalty payments on January
31 for the oil sold between the previous June 1 and November 30, an on July 31 for oil between
December 31 and May 31. Production revealed the following sales:
June 1, 2019 - November 30, 2019 3,000,000
December 1, 2019 - December 31, 2019 500,000
December 1, 2019 - May 31, 2020 4,000,000
June 1, 2020 - November 30, 2020 3,250,000
December 1, 2020 - December 31, 2020 700,000
What amount should be reported as royalty revenue for 2020?
Step by step
Solved in 2 steps
- Smile owned a 20% royalty interest in an oil well. Smile received royalty payments on January 31 for the oil sold between the previous June 1 and November 30, an on July 31 for oil between December 31 and May 31. Production revealed the following sales: June 1, 2019-November 30, 20193,000,000 December 1, 2019-December 31, 2019500,000 December 1, 2019-May 31, 20204,000,000 June 1, 2020-November 30, 20203,250,000 December 1, 2020-December 31, 2020700,000 What amount should be reported as royalty revenue for 2020?Jaimson Energy operates a lease in Hutchinson County, Texas. The lease is burdened with a 1/8 royalty interest held by the Burnett Family Trust. Prior to the first sale of oil Jaimson Energy assigns an overriding royalty interest of 6.25% of its 87.5% net revenue interest to Sunset Oil. Following the assignment, Jaimson Energy produces 1,500 barrels of oil in March 2022 and sells 975 barrels. The severance tax is 5%, lease operating expenses totaled $35,000 and price per BBL is $99. Record the sale for the Burnett Family Trust. How much of the lease operating expenses does Sunset Oil pay?Lion Company granted 30,000 share appreciation rights which entitled key employees to receive cash equal to the difference between P20 and the market price of the share on the date each right is exercised. The service period is 2019 through 2021, and the rights are exercisable in 2022. The market price of the share was P25 and P28 on December 31, 2019 and 2020, respectively. How much should be recorded as compensation expense for 2020? Copenhagen Company granted 200 share appreciation rights to each of the 500 employees on January 1, 2016. The rights are due to vest on December 31, 2019 with payment being made on December 31, 2020. Only 80% of the awards vest. January 1, 2016 (predetermined price)150 December 31, 2016 : 180 December 31, 2019 : 210 December 31, 2020 : 190 What amount should be recognized as gain on reversal of share appreciation rights on December 31, 2020?
- WWD Oil Company sells 10,000 bbl of oil for $70 per barrel. The lease provides for a 1/6 Royalty interest, and the Working interest owner has distributed an Overriding Royalty interest of 25%. The severance tax rate is 6%. Record the entries of RI owner, the ORI owner and the WI owner, assuming WWD Oil assumes responsibility for distributing the taxes and royalty income.DRAX Company granted 30,000 share appreciation rights which entitled key employees to receive cash equal to the difference between ₱50 and the market price of the share on the date each right is exercised. The service period is 2020 through 2022, and the rights are exercisable in 2023. The market price of the share was ₱55 and ₱60 on December 2020 and 2021, respectively. What amount should be recorded as compensation expense for 2021? a. ₱ 200,000 b. ₱ 150,000 c. ₱ 50,000 d. ₱ 350,000Sawi Ak Co. acquires copyright from authors, paying advance royalties in some cases and in others, paying royalties within 30 days from year end. Sawi Ak Co. reported royalty expense of P375,000 for the year ended December 31, 2020. The following data are included in the corporation’s balance sheet, 2019 and 2020, respectively: Prepaid royalties- P60,000; P50,000 Royalties payable- P75,000; P90,000 Under cash basis, what amount of royalty expense should be reported in 2020 profit or loss? P380,000 P375,000 P400,000 P350,000
- Lion Company granted 30,000 share appreciation rights which entitled key employees to receive cash equal to the difference between P20 and the market price of the share on the date each right is exercised. The service period is 2019 through 2021, and the rights are exercisable in 2022. The market price of the share was P25 and P28 on December 31, 2019 and 2020, respectively. How much should be recorded as compensation expense for 2020?ENG Oil Company produced and sold 30,000 barrels of oil during May 2020 at $60/bbl from lease A. The company has 4/5 revenue interest in the above lease with 60% working interest. North Oil Company is a non-operator working interest owner in Lease A. In addition, National Company purchased ORI in lease A. The severance tax rate applied is 5% and ENG reported a revenue of $810,000 for May sales. a. Prepare the journal entry for ENG to record the sale of the oil, given thatthe purchaser assumes the responsibility of distributing severance taxesand royalty income.b. Prepare the journal entry for ENG to record the sale of the oil, given thatENG assumes the responsibility and receives 100% proceeds.c. Prepare the journal entry for National Company to record the sale of oil.d. Prepare the journal entry for the royalty interest owner to record the saleof oil.e. Prepare the journal entry for the overriding interest owner to record thesale of oil.Gold Company granted 30,000 share appreciation rights which entitled key employees to receive cash equal to the difference between P200 and the market price of the share on the date each right is exercised. The service period is 2022 through 2024 and the rights are exercisable in 2025. The market price of the share was P250 and P280 on December 31, 2022 and 2023, respectively. What amount should Gold Company report as liability under the share appreciation rights on December 31, 2023?ANSWER: 1,600,000 Please kindly show solution. Thanks
- ENG Oil Company produced and sold 30,000 barrels of oil during May 2020 at $60/bbl from lease A. The company has 4/5 revenue interest in the above lease with 60% working interest. North Oil Company is a non-operator working interest owner in Lease A. In addition, the National Company purchased ORI in lease A. The severance tax rate applied is 5% and ENG reported revenue of $810,000 for May sales. prepare the journal entry for the overriding interest owner to record the sale of oil.Lion Company granted 30,000 share appreciation rights which entitled key employees to receive cash equal to the difference between P20 and the market price of the share on the date each right is exercised. The service period is 2019 through 2021, and the rights are exercisable in 2022. The market price of the share was P25 and P28 on December 31, 2019 and 2020, respectively. How much should be recorded as compensation expense for 2020? A. 150,000 B. 120,000 C. 110,000 D. 10,000 E. answer not givenOn April 1,2021, Red Company purchased a franchise for P3,125,000. In addition, the franchise contract stipulates that Red shall pay to the franchisor, 5% of its sales exceeding P5,000,000, payable at the end of the month following the end of every quarter. For the nine months ended Dec. 31, 2021, Red company's sales amounts to P8,500,000. The estimated useful life of the franchise is 10 years. It is the company's policy to amortize to the nearest month. a. How much is the amortization expense for the year 2021? b. How much is the franchise fee expense for the year 2021?