[The following information applies to the questions displayed below.] Onslow Company purchased a used machine for $192,000 cash on January 2. On January 3, Onslow paid $8,000 to wire electricity to the machine. Onslow paid an additional $1,600 on January 4 to secure the machine for operation. The machine will be used for six years and have a $23,040 salvage value. Straight-line depreciation is used. On December 31, at the end of its fifth year in operations, it is disposed of.
Q: ABC Company established a branch in Pasig on March 1, 2022. Shipments of merchandise at billed…
A: INTRODUCTION: Net income, often known as net profit, is a computation that determines how much total…
Q: Mango Co. owns a machine that was bought on January 1, 2017, for P752,000. The machine was…
A: Depreciation- Depreciation is the term used in accounting to describe how an asset's value…
Q: RUE BENNETT Company develops software for small businesses and household computers. The majority of…
A: Note: Since you have posted a question with multiple sub-parts, we will solve the first three…
Q: 2. Prepare the current assets section of its December 31 year-end balance sheet. Current assets…
A: Current assets are assets which are short-term in nature. It can be easily liquidated.
Q: The Hua Company has decided to undertake a large project. Consequently, there is a need for…
A: Paid in capital stock consist of preferred and common stock where preferred shares are issued by the…
Q: Before a person may be appointed as a director, they must? O a Consent but the consent need only be…
A: Condition For Appointment of Directors:— 1]. Every Directors shall be appointed in the General…
Q: ABC Company sells inventory to XYZ Company for $2,400. If XYZ purchases additional inventory it…
A: Discount on purchase :— It is an offer provided to purchaser to Purchase Goods in Less Price then…
Q: a. Prepare the annual pro forma financial statements that you would expect Mary to prepare based on…
A: Income statements are necessary for businesses since they benefit both the company and its…
Q: Question 4 4. Explain “royalty” under the Income Tax Act 1967. Explain and elaborate the answer…
A: Income Tax- Income tax is best defined as the amount of tax levied by the government on the earnings…
Q: EMC Corporation manufactures large-scale, high-performance computer systems. In a recent annual…
A: Bad debt expense for 2015=Balance of allowance for uncollectible accounts in 2014+Bad Debts written…
Q: Superior Company provided the following data for the year ended December 31 (all raw materials are…
A: Introduction: The cost of goods manufactured schedule is used to calculate the long-term cost of…
Q: II Analytical 3. Suppose on Monday a person deposits $800 in a Friendly Bank out of $1000 the person…
A: M2= Currency + Demand Deposits MB= Currency + Bank Reserves
Q: Assume the car can be purchased for 0% down for 60 months (in lieu of rebate). A car with a sticker…
A: INTRODUCTION: The term "annual percentage rate" (APR) describes the annual interest that is produced…
Q: distribution. The net income for 2020 is P1,500,000. How much is the balance of Accumulated Profits…
A: A Company can issue dividend in the form of cash or shares. Dividend can be declared from Free…
Q: Describe three different purposes for computing products costs
A: Product Cost - Product Cost is the cost incurred by the organization for the product of the entity.…
Q: Calculate Total Profit to be divided partners when average profits of the ng 3 years were Profit…
A: As per provision of Partnership deed profit or losses made by firm should be divided among partners.
Q: What is the total effect of the errors on 2005 net income?
A: As per the Accrual Concept of Accounting, an expense should be recorded as expense only in that year…
Q: 1. Compute the activity rate for each activity using activity-based costing. 2. The company's Pro…
A: ABC is a technique for allocating overhead and indirect costs, such as wages and utilities, to goods…
Q: nce sheets for Providence lechnology Company and Smashing Technology Company on January 1, 2021 are…
A: INTRODUCTION: Equities are corporate shares that signify ownership in the firm. Property ownership,…
Q: On April 1, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions…
A: Journal Entries - Journal Entries are the recording of transactions of the organization. It is…
Q: Section 2 - Q2 [Section 2 general information stays the same. It is repeated for your information.]…
A: Bentley Inc. Leases an asset to Haley Inc. IFRS 16 requires the lessee to record the leased asset…
Q: Weston Products manufactures an industrial cleaning compound that goes through three processing…
A: Introduction: Process costing is a type of costing method in which cost of product is determined at…
Q: Accounts Receivable Analysis Kate Miller owns a dance studio in Los Angeles, California. Students…
A: Accounts receivables are those customer accounts to whom business has made credit sales on account,…
Q: Many OPTIONS 10,000 shares of the ordinary stock of the Travis Company have a P10 par value. The…
A: Given, Number of shares = 10,000 sharesPar value = P 10Market price = P 16Stock split ratio = 2:1 or…
Q: Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy…
A: Income Statement- It depicts the company's performance over a specific time period, with sales…
Q: Oriole Corporation has 74,000 shares of common stock outstanding. It declares a $2 per share cash…
A: Introduction: Journals: All the business transactions are to be recorded in Journals. Journals are…
Q: Mr.Andi plans to purchase a new printing machine. He has already received the offering from two…
A: Present Worth(PW) refers to current value of a future sum of money at a specified rate of return.…
Q: Accounts receivable arising from sales to customers amounted to $77000 and $76000 at the beginning…
A: Cash flow from operating activities indicates the cash inflow or outflow transactions related to the…
Q: Bridgeport Corporation was organized on January 1, 2022. It is authorized to issue 15,000 shares of…
A: The common shares represent the ownership portion of the company. The common shareholder is…
Q: Instructions The following equity investment transactions were completed by Romero Company during a…
A: A journal entry is used to disclose a business deal in a company's accounting records. A journal…
Q: On November 10, 2020, Singh Electronics began to buy and resell scanners for $58 each. Singh uses…
A: The process of recording business transactions in the books of accounts for the first time is…
Q: For Mortenson Company, the following information is available: Cost of goods sold P 60,000; Sales…
A: Income statement of a company shows its gross profit or gross loss and net profit or net loss.…
Q: II Analytical 3. Suppose on Monday a person deposits $800 in a Friendly Bank out of $1000 the person…
A: INTRODUCTION: Assets - Assets are the company's resources that allow it to create profits. Assets…
Q: this period? (Round your answer to 1 decimal place.) Annual growth rate
A: Growth Rate: It is the change / increase in the value of any scale over a certain period of time. It…
Q: 8. Assume that on January 1, 2016, a parent sells to its wholly owned subsidiary, for a sale price…
A: Journal entries refers to the entries which reports the daily transactions of the business into the…
Q: On January 23, 15,000 shares of Tolle Company are acquired at a price of $25 per share plus a $145…
A: Introduction: A journal entry is used to disclose a business deal in a company's accounting records.…
Q: Deidoro Company has provided the following data for maintenance cost: Machine hours Maintenance cost…
A: Cost accounting is one of the important field of accounting. There are mainly two type of costs…
Q: c. Clearly show the cash flow profile for each alternative using an opportunity cost approach…
A: Comment- Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…
Q: REQUIRED Use the information given below to calculate the following ratios for 2019. (Where…
A: Financial Ratios are very important when it comes to see a firm's current financial status in…
Q: Sparkle Jewelry sells 800 units resulting in $85,000 of sales revenue, $32,000 of variable costs.…
A: Operating income is the amount of money earned by an entity from its operations. It is computed by…
Q: Diva Ltd has an item of equipment with a carrying amount of $110000 (cost $150000 less accumulated…
A: Impairment Loss- Impairment loss is the term used to describe the fall in an asset's carrying value…
Q: n its fiscal 2010 balance sheet, Big Lots, Inc., reported cash and cash equivalents at the start of…
A: Calculation of increase/(decrease) in cash and cash equivalents : Particulars Amount Cash and…
Q: Willard Company established a $500 petty cash fund on September 9, 2020. On September 30, the fund…
A: Petty cash refers to the small amount of cash maintained by cashier of company in order to meet…
Q: Beginning inventory of $40,000 plus purchases of $30,000 equals which of the following? a. Cost…
A: The cost of goods available for sale is the sum of inventory in the hand and the inventory purchased…
Q: At December 31, Hawke Company reports the following results for its calendar year. Cash sales:…
A: Whenever a business makes credit sales, it will generate accounts receivables for the business.…
Q: REQUIRED: Calculate Alexis's federal and provincial income tax owing
A: Important points to be taken into consideration: 1. If income is less than $50,197, the income tax…
Q: How much is the income tax payable assuming the taxable year is 2020?
A: Taxable income will be calculated by adding gross profit from sales, capital gain, dividends from…
Q: a) Calculate the firm’s operating cycle. b) Calculate the firm’s cash conversion cycle c) Calculate…
A: The operating cycle of the company means the cycle in which the operating activities of the business…
Q: Golden Diamond Jeweler Inc is currently forecasting a revenue of Php2,000,000, Php3,200,000 and…
A: A cash budget is a determination of the cash flows of a company's business transactions over a…
Q: he following balances were taken from the books of Aquarius Corpor ordinary Share Capital (10,000…
A: Legal Capital : It is an amount of a firm’s equity with which the company authorised or registered…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- Farm Fresh Agriculture Company purchased Sunny Side Egg Distribution for $400,000 cash when Sunny Side had net assets worth $390,000. A. What is the amount of goodwill in this transaction? B. What is Farm Fresh Agriculture Companys journal entry to record the purchase of Sunny Side Egg Distribution? C. What journal entry should Farm Fresh Agriculture Company write when the company tests for impairment and determines that goodwill is worth $1,000 in the year following the purchase of Sunny Side?Garcia Co. owns equipment that costs $76,800, with accumulated depreciation of $40,800. Garcia sells the equipment for cash. Record the journal entry for the sale of the equipment if Garcia were to sell the equipment for the following amounts: A. $47,000 cash B. $36,000 cash C. $31,000 cashOn January 2, Bering Co. disposes of a machine costing $44,000 with accumulated depreciation of $24,625. Prepare the entries to record the disposal under each separate situation. 1. The machine is sold for $18,250 cash. 2. The machine is traded in for a new machine having a $60,200 cash price. A $25,000 trade-in allowance is received, and the balance is paid in cash. Assume the asset exchange has commercial substance. 3. The machine is traded in for a new machine having a $60,200 cash price. A $15,000 trade-in allowance is received, and the balance is paid in cash. Assume the asset exchange has commercial substance.
- On August 1, Gold Company exchanged a machine for a similar machine owned by Cowboy Company and also received $7,000 cash from Cowboy Company. Gold's machine had an original cost of $80,000, accumulated depreciation to date of $14,500, and a fair market value of $60,000. Cowboy’s machine had an original cost of $95,000 and a book value of $45,000 and a fair value of $53,000.Required:a. Prepare the necessary journal entry by Gold Company to record this transaction.b. Prepare the necessary journal entry by Cowboy Company to record this transaction.GRACE Co. recently acquired two items of equipment. Acquired a press at an invoice price of P5,000,000 subject to a 5% cash discount which was taken. Costs of freight and insurance during shipment were P50,000 and installation cost amounted to P200,000. The cost of testing the equipment is P50,000 while the administration cost has amounted to P30,000. Acquired a welding machine at an invoice price of P3,000,000 subject to a 10% cash discount which was not taken. Additional welding supplies were acquired at a cost of P100,000. Required: What is the total increase in the equipment account as a result of the transactions?On January 1, 2020, Flounder Inc. sold computer equipment to Shamrock Co. The sales price of the equipment was $515,000 and its carrying amount is $398,000. Record any journal entries necessary for Flounder from the sale of the computer equipment in 2020. 1/1/20 Cash 515000 Equipment 398000 Gain on Disposal of Equip 117000 Use the information from part a. Assume that, on the same day the sale occurred, Flounder enters into an agreement to lease the equipment from Shamrock for 10 years with annual lease payments of $66,694.90 at the end of each year, beginning on December 31, 2020. If Flounder has an incremental borrowing rate of 5% and the equipment has an economic useful life of 10 years, record any journal entries necessary for Flounder from the sale and leaseback of computer equipment in 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to 2…
- Worf Co. both purchases and constructs various equipment it uses in its operations. The following items for two different types of equipment were recorded in random order during the calendar year 2020. Purchase Cash paid for equipment, including sales tax of $5,000 $105,000 Freight and insurance cost while in transit 2,000 Cost of moving equipment into place at factory 3,100 Wage cost for technicians to test equipment 4,000 Insurance premium paid during first year of operation on this equipment 1,500 Special plumbing fixtures required for new equipment 8,000 Repair cost incurred in first year of operations related to this equipment 1,300 Construction Material and purchased parts (gross cost $200,000; failed to take 2% cash discount) $200,000 Imputed interest on funds used during construction (stock financing) 14,000 Labor costs 190,000 Allocated overhead costs (fixed—$20,000; variable—$30,000) 50,000 Profit on self-construction 30,000…Rottino Company purchased a new cutting machine on January 1, 2017, at $17,000, paid in cash. It has been depreciated using the double-declining-balance method based on an estimated salvage value of $0 and an estimated useful life of 5 years. Prepare Rottino Company's journal entries to record the disposal of the machine on October 31, 2018, in these two independent situations (show your calculations to prove the result): Requirement: (i) Sold the machine for $7.600 cash. (ii) Exchange the old cutting machine with cash of $1,000 for a new cutting machine. The old machine had a fair value of $7,000.A company purchased a new machine on January 1, 2014. The supplier, "Forever supply" was paid $2,000 in cash. In addition, transportation and installation were $180 (paid in cash), legal costs associated with the asset were $20 (paid in cash). The machine has an estimated life of 5 years and an estimated salvage value of $300. It is company policy to use straight line depreciation for all of its machines. question: Assume the machine was sold on July 1, 2015 to "company A" for $1200 cash. Prepare the journal entry/entries to record this transaction. What was the gain/loss? Include the classification of the accounts and clearly label your debits and credits.
- Bridgeport Co. both purchases and constructs various equipment it uses in its operations. The following items for two different types of equipment were recorded in random order during the calendar year 2020. Purchase Cash paid for equipment, including sales tax of $7,400 $155,400 Freight and insurance cost while in transit 2,960 Cost of moving equipment into place at factory 4,588 Wage cost for technicians to test equipment 5,920 Insurance premium paid during first year of operation on this equipment 2,220 Special plumbing fixtures required for new equipment 11,840 Repair cost incurred in first year of operations related to this equipment 1,924 Construction Material and purchased parts (gross cost $296,000; failed to take 2% cash discount) $296,000 Imputed interest on funds used during construction (stock financing) 20,720 Labor costs 281,200 Allocated overhead costs (fixed-$29,600; variable-$44,400)…weet Co. both purchases and constructs various equipment it uses in its operations. The following items for two different types of equipment were recorded in random order during the calendar year 2020. Purchase Cash paid for equipment, including sales tax of $6,100 $128,100 Freight and insurance cost while in transit 2,440 Cost of moving equipment into place at factory 3,782 Wage cost for technicians to test equipment 4,880 Insurance premium paid during first year of operation on this equipment 1,830 Special plumbing fixtures required for new equipment 9,760 Repair cost incurred in first year of operations related to this equipment 1,586 Construction Material and purchased parts (gross cost $244,000; failed to take 2% cash discount) $244,000 Imputed interest on funds used during construction (stock financing) 17,080 Labor costs 231,800 Allocated overhead costs (fixed-$24,400; variable-$36,600)…During the current year, Benguet Company purchased a secondhand machine at a price of P300,000. A cash down payment of P50,000 was made and a two-year, non interest bearing note was issued for the balance. Recent transactions involving similar machinery indicate that the used machine has a secondhand market value of P240,000. A new machine would cost P400,000. The following costs were incurred on the machine during the year: Cost of removing the old machine 2,000Cash proceeds form the sale of the old machine 1,200Cost of spare parts purchased and set aside from breakdowns during the first two years of normal use of the machine 20,000Cost of labor to install the machine 4,000Cost of testing the machine prior to use 1,800Cost of hauling the machine from the vendor’s place of business to the company’s premises 5,000Cost of repairing the damage to the machine when it was dropped during the installation 3,000Repairs incurred during the first year of operations 6,000Safety devices added to…