The following relate to Glassman Company's patents assigned to other entities: December January 1 31 Royalties P500,000 P1,500,000 receivable
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: DEF Co.'s current reporting period ends on December 31, 20x1. The following transactions occurred…
A: Adjusted Profit: If there is one or more unrecorded transactions, then we have to adjust all these…
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A: Cash flow statement is a statement which is prepared to find out the cash comes in and goes out , by…
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A: The revenue to be recognized would be annual amount of installment fee and the commission to be paid…
Q: On May 1, Soriano Co. reported the following account balances along with their estimated fair…
A: Answer- Journal Entry to record the Soriano Acquisition - S.no Particular Debit Credit…
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A: Revenue recognition is the concept which explains that revenue should be recognized when the…
Q: 1. During 2021, Thor Company was sued by a competitor for P5,000,000 for infringement of a…
A: Comment- We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: The following costs have been incurred in respect of the patent in the current financial year.…
A: Patent: It is the intangible assets. This asset is not like the other assets because their value…
Q: AAA Co. assigns some of its patents to other enterprises under a variety of licensing agreements. In…
A: given that, received royalties remittance of P200000 we know that, income received in advance for…
Q: Sawi Ak Co. acquires copyright from authors, paying advance royalties in some cases and in others,…
A: Royalty is a recurring payment given by the asset's user to the asset's owner or creator in exchange…
Q: Bahrain Company acquired a trademark for 10,000,000 from Bangkok Trading on January 2, 2020. The…
A: Amortization is a process of reducing the book value of an intangible asset over its useful life.…
Q: Park Company acquires copyrights from authors, paying advance royalties in some cases, and in…
A: Royalty payment during is determined by adjusting Royalty expense with prepaid and royalty payable
Q: On January 1, 20x1, M Co. incurred P500,000 in registering a patent. It was initially estimated that…
A: Amortization of Patents - It is the calculation of patent amounts divided by the useful life of…
Q: On June 1, 20x9, CAP CÓ paid P800,000 for the net assets of SHER CO. the carrying values for SHER’s…
A: Goodwill would be an intangible asset that is related to the acquisition by one company. In…
Q: 11 Fanny Company’s trademark was licensed to Jean Company for royalties of 40% of sales of the…
A: Accrual system of accounting says that every thing which is accrued has to be provided in books of…
Q: Among the account balance of Jeffrey Corporation at December 31, 2009 are the following: Patent…
A: A patent is the granting of a property right to the inventor by a sovereign authority. This grant…
Q: Patrick Corporation’s adjusted trial balance contained the following asset accounts at December 31,…
A: Balance Sheet (Partial) at December 31, 2020 Intangible Assets: Goodwill $50,000…
Q: Peter Senen Corporation acquires copyright from authors, paying advance royalties in some cases and…
A: Cash basis is the term of accounting, which is one of the accounting method that recognize the…
Q: he following are the balances of the liability accounts of ABC Company as of December 31,2021:…
A: Concept Account payable with debit balance has to net off and presented with single amount When the…
Q: Ferol Company acquired rights to a patent from Rachal Company requiring an advance royalty payment…
A: Cash basis of accounting says that only cash paid and cash received items should be considered for…
Q: Company acquires copyrights from authors, paying advance royalties in some cases, and in others,…
A: To find out the actual royalty payments we need to prepare a statement for royalty payments. In…
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A: Therefore patent amortization expense is $125603. Formulation-
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A: The income or expenses in income statement should be recorded for current year only after adjusting…
Q: Company acquires copyright from authors, paying advance royalties in some cases and in others,…
A: Cash basis accounting: In cash basis accounting , revenue are recognized when payment is received…
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A: Patents are intangible assets which cannot be identified physically. Intangible assets are generally…
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A: Cash basis accounting: In cash basis accounting, revenue is recognized when payment is received and…
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A: Prepaid expenses are those expenses which are related with future period of time but amount has been…
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A: Prepare any journal entries Dreighton should record during 2016 related to the royalty revenue.
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A: Upfront non-refundable Franchisee Fee: Instead, the upfront price is seen as a down payment for…
Q: What is the amount of revenue to be recognized by Excel in its financial statements?
A: Financial statements are the statements that depict the true position of the business. The financial…
Q: On January 1, 20x1, an entity granted a franchise to a franchisee. The franchise agreement required…
A: SOLUTION- AS PER FASB 45 ACCOUNTING FOR FRANCHISE FEE REVENUE , THE REVENUE FROM THE FRANCHISE FEE…
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A:
Q: Screen Co. assigns some of its patents to other enterprises under a variety of licensing agreements…
A: Financial statement: Financial information is a written record of an organization and individual…
Q: P6 At the start of the year, EE, MM, and RR Service Firms, each had P75,000 of supplies on hand. The…
A: Adjustment entries are those journal entries which are passed at the end of the period in order to…
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A: Given, Total manufacturing cost = P185,000 Standalone price for product 1 =…
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A: The non-refundable fees are recognized at the time of receiving the non-refundable fees and the…
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A: five major steps of recognition of revenue : Identification of contract with the customer.…
Q: Ciara company assigns patent rights for which royalties are received. During 2018, Ciara received…
A: A royalty is a fee paid to the owner of a product or patent by a third party for the use of that…
Q: Brilliant Company sold a franchise to sell its products for P5,000,000 on January 1, 2021. The…
A: Lets understand the basics. When franchisor give franchisee then some intial payment and annual…
Q: e of th
A: Given: Jordan Company for P120,000 Trademark totaling P30,000
Q: Ferol Company acquired rights to a patent from Rachal Company requiring an advance royalty payment…
A: Any amount of money spent to generate the revenues in a business is known as expenses.
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A: As per the standards relating to Revenue from Contracts with customers, transaction price should be…
Q: 57. On March 15, 2019, Milo company paid property taxes of P180,000 on the factory building for…
A: Solution: Amount of these expenses to be reported in quarterly income statement ending June 30, 2019…
Q: Sawi Ak Co. acquires copyright from authors, paying advance royalties in some cases and in others,…
A: Accrual basis: Under accrual basis accounting, revenue and expenses are recognized when they are…
Q: he following are the balances of the liability accounts of ABC Company as of December 31,2021:…
A: Concept Account payable with debit balance has to net off and presented with single amount When the…
Q: (Accounting for Franchise, Patents, and Trademark) Information concerning Sandro Corporation’s…
A: Intangible Assets: These assets are those types of assets that are not physical in nature but they…
Q: anny Company’s trademark was licensed to Jean Company for royalties of 40% of sales of the…
A: solution : given: royalty income = 40% of sales of the trademarked items royalties…
Q: Sami company acquired a patent on October 1, 2020. Sami paid cash of $55,000 to the seller.…
A: Patents is a form of intangible asset which needs to be amortised over the useful life of the…
Q: Smith and Sons obtained a patent for an new optical scanning device. The fees incurred to file for…
A: Journal entry: it is prepared to record the financial and non financial transaction of the business…
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- Excel Co. agreed to pay 10% royalty to National Corp. for the use of intellectual property rights of Excel Co. requires to make sales to its customers. Excel Co's sales for the period amounts to P1,000,000. In providing the goods and services itself, Excel Co. is the principal in the sales made with its customers. What is the amount of revenue to be recognized by Excel in its financial statements? 100,000900,0001,000,0001,100,000On December 01, 2021, SEVENTY-SEVEN Corporation declared equipment with carrying amount of P1,300,000 as property dividend to be distributed on January 31, 2022. The equipment had the following fair value on the following dates: December 01, 2021 1,400,000 December 31, 2021 1,100,000 January 31, 2022 1,500,000 Journal entry on January 31, 2022 should include debit to:On December 01, 2021, SEVENTY-SEVEN Corporation declared equipment with carrying amount of P1,300,000 as property dividend to be distributed on January 31, 2022. The equipment had the following fair value on the following dates: December 01, 2021 1,500,000 December 31, 2021 1,600,000 January 31, 2022 1,900,000 Journal entry on January 31, 2022 should include credit to:
- The fair value of the net identifiable assets of Pax Limited are determined as follows:($000)Patent rights 200Machinery 1,000Buildings 1,500Land 2,3005,000Less: Bank loan 600Net assets 4,400At the end of the reporting period of 30 June 2019, the management of Snowy Ltd determines thatthe recoverable amount of the cash-generating unit, which is considered to be Pax Ltd, totals$4,500,000. The carrying amount of the net identifiable assets of Pax Ltd, excluding goodwill, isunchanged and remains at $4,400,000.Required:a) Prepare the journal entry to account for any impairment of goodwill. (6 marks)b) Assume instead that at the end of the reporting period the management of Snowy Ltd determinesthat the recoverable amount of the cash-generating unit, which is considered to be Pax Ltd, totals$4,200,000. Determine the impairment of goodwill amount.On December 01, 2021, SEVENTY-SEVEN Corporation declared equipment with carrying amount of P1,300,000 as property dividend to be distributed on January 31, 2022. The equipment had the following fair value on the following dates: December 01, 2021 1,500,000 December 31, 2021 1,600,000 January 31, 2022 1,900,000 Journal entry on December 31,2021 should include credit to:On January 1, 20x1, DIAPHANOUS Co. acquired all of the identifiable assets and assumed all of the liabilities of TRANSPARENT, Inc. by paying cash of ₱4,000,000. On this date, the identifiable assets acquired and liabilities assumed have fair values of ₱6,400,000 and ₱3,600,000, respectively. 1,680,000 1,640,000 1,760,000 1,240,000
- ( crane co at the end of 202-itsfirst year of of operations prepared a reconciliation between pertax financial income and taxable income as follows; Pertax financial income $1170000 Estimated litigation expensense 2950000 Installment sales (2360000) Taxable income 1760000 ( crane co at the end of 202-itsfirst year of of operations prepared a reconciliation between pertax financial income and taxable income as follows; Pertax financial income $1170000 Estimated litigation expensense 2950000 Installment sales (2360000) Taxable income 1760000 The estimated litigation expense of $2950000 will be deductible in 2022 when it is expected to be paid. The gross profit from the installment sales will be realized in the amount of 1180000 in each of the next two years. The estimated libility for litigation is classified as noncurrent and the…On January 1, 2018, ICT Company purchased 80% of ESP Company's stock for P975,000. On this date, the carrying amount of ESP Company's net assets were P1,000,000. The fair value of ESP Company's identifiable assets and liabilities were the same as their carrying amount except for plant assets (net) which were P100,000 in excess of the carrying amount. For the year ended, ESP Company had a net income of P190,000 and paid cash dividends totaling P125,000. Parent opted to measure NCI proportionate to its share on ESP's identifiable net assets. In the December 31, 2018 consolidated balance sheet, NCI should be reported at:MEME Corporation’s Retained Earnings at December 31, 2021 amounted to P2,000,000. On that date, the corporation declared and distributed its investment property which was acquired at a historical cost P300,000 and has a fair market value of P450,000 on December 31, 2021. On the date of declaration and distribution, by what amount should Retained Earnings be charged?
- On October 26, 20x1, Entity A acquired 100% interest in Entity B for P2,800,000. On this date, Entity B's identifiable assets and liabilities have fair values of P4,000,000 and P1,600,000, respectively. Included in Entity B's liabilities are cash dividends of P280,000 declared on October 1, 20x1, to shareholders of record on November 1, 20x1, and payable on December 1, 20x1. Requirement: Compute for the goodwill.Part A: For the fiscal year ended March 31, 2020, X Company, the 80%-owned subsidiary of Y Corporation, had a net income of $600,000 and declared and paid dividends of $200,000. The fiscal Year 2020 depreciation and amortization of differences between current fair values and carrying amounts of X’s identifiable net assets was $30,000, and the Fiscal Year 2020 impairment of goodwill recognized in the business combination was $1,000. Instructions: Prepare journal entries for Y Corporation to record the Fiscal Year 2020 operating results of X Company under the equity method. Part B: Included in the accounting records of the home office and the only branch, respectively, of Hamad Company were the following ledger accounts for June 2020: Investment in Ali Branch Date Explanation Debit Credit…As of December 31, 20X4, Blue Co.’s statement of financial position shows the book values of $15,000,000 for total assets and $12,000,000 for total liabilities. Also on December 31, 20X4, an appraisal shows the fair values of $18,500,000 for total assets and $14,000,000 for total liabilities. Green Co. purchased all of the net assets of Blue Co. on December 31, 20X4 for $5,500,000. What amount of goodwill, if any, did Green Co. record on the acquisition date? a. $2,500,000 b. $1,000,000 c. $4,500,000 d. $0
