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- Steele Corp. purchases equipment for $25,000. Regarding the purchase, Steele recorded the following transactions: Paid shipping of $1,000 Paid installation fees of $2,000 Pays annual maintenance cost of $200 Received a 5% discount on $25,000 sales price Determine the acquisition cost of the equipment.Jada Company had the following transactions during the year: Purchased a machine for $500,000 using a long-term note to finance it Paid $500 for ordinary repair Purchased a patent for $45,000 cash Paid $200,000 cash for addition to an existing building Paid $60,000 for monthly salaries Paid $250 for routine maintenance on equipment Paid $10,000 for major repairs Depreciation expense recorded for the year is $25,000 If all transactions were recorded properly, what is the amount of increase to the Property, Plant, and Equipment section of Jadas balance sheet resulting from this years transactions? What amount did Jada report on the income statement for expenses for the year?In the year ended 31 December 20X7 Bobby traded in for £3,430 a vehicle costing £6,000 on 1 November 20X5 against the cost (£4,800) of a replacement vehicle. The balance due for the new vehicle has been paid in cash and debited to the cost of vehicles account and credited to cash at bank. What net adjustment is required to the company's cost of vehicles account as a result of this transaction?
- Alpha limited has the following events for the current year . Revenues $10,000 Cost of goods sold $3,50,000 Depreciation $400,000 Interest paid $1,50,000 Calculate the net profit and select the correct amount from below .Assume that none of the relevant transactions are based on credit . a)$1,000,000 b)$ 900,000 c) $500,000 d) 250,000Ina Corp. sold equipment costing P1,200,000 for P2,500,000. Old equipment was accepted as down payment with trade –in value of P600,000. Total collections for the year was P1,500,000, it was also ascertained that the trade in resulted in over-allowance of P100,000. How much is the realized gross profit for the year just ended?PLEASE SHOW SOLUTIONS IN GOOD ACCOUNTING FORM. 8. Mary Corporation has a branch in Caloocan. During 2021, the home office shipped to the branch supplies costing P156,000 at a billed price of 30% above cost. The inventories of supplies at the branch were as follows: January 1, 2021 P110,000; December 31, 2021 128,000. On December 31, 2021, the home office holds inventories of P112,800 which includes P11,500 held on consignment and which excludes P5,000 inventories out on consignment. How much is the inventories in a combined balanced sheet as of December 31, 2021?
- A company sells $170,000 (sales price) of goods and collects sales tax of 5%. What current liability does the sale create? A. Sales tax payable of $8,500 B. Sales revenue of $178,500 C. Unearned revenur of $8,500 D. None; the company collected cash up front.Show the solution in good accounting form On January 01, 2020 Kit Company, Inc. establishes a branch in Bauang. During the year, Kit Inc. transfers cash and merchandise to the branch worth P15,000 and P45,000 respectively. Freight was paid by the home office worth P1,500 included in the cost of merchandise. The home office also incurred P5,700 expenses of which 30 percent was allocated to the branch. On December 31, 2020, the branch incurred a loss of P4,000. What is the balance of the branch account as per home office books?Show the solution in good accounting form Mary Corporation has a branch in Caloocan. During 2021, the home office shipped to the branch supplies costing P156,000 at a billed price of 30% above cost. The inventories of supplies at the branch were as follows: January 1, 2021 P110,000; December 31, 2021 128,000. On December 31, 2021, the home office holds inventories of P112,800 which includes P11,500 held on consignment and which excludes P5,000 inventories out on consignment. How much is the inventories in a combined balanced sheet as of December 31, 2021?
- The following is the Trial Balance of docutech Ltd, a dealer in ICT Equipment, as at 31st December, 2021. GHS GHS Capital 240,000 Receivables and Payables 159,000 51,000 Inventory 99,000 Motor vehicles: (cost) 72,500 Accumulated depreciation (31 December 2020) 32,500 Office equipment: (cost) 90,000 Accumulated depreciation (31 December 2020) 30,000 Administrative expenses 26,000 Purchases and sales 243,750 490,500 Employee benefits 33,000 Selling expenses 20,000 Plant: (cost) 125,000 Accumulated depreciation (31 December 2020) 37,500 Discounts 7,500 12,500 Accruals 79,000…Entity A sold computer accessories. The draft accounts for the year ended 31 December 2014 included a motor van with the cost of $1,985,000 which was bought on 1 January 2012. Its economic life is assumed to be 8 years. However, the market has turned down on 31 December 2014, as a result, the motor van was estimated that it could only be able to generate $210,000 cash at each year-end of 2015, 2016, 2017, 2018 and 2019 respectively. It will then be scrapped on 31 December 2019 with a scrap value of $25,000. Alternatively, the motor van could be sold immediately on 31 December 2014 for $840,000 and $95,000 selling costs incurred. Market interest rates are 12.00% per annum. Recoverable amounts on 31 December 2015 and 31 December 2016 are $750,000 and $850,000 respectively. On 1 January 2016, Entity A changed the depreciation method from the straight-line method to the reducing balance method of 20% annually. On 31 December 2017, Entity A sold the motor van for $580,500. REQUIRED:…On January 01, 2020 Kit Company, Inc. establishes a branch in Bauang. During the year, Kit Inc. transfers cash and merchandise to the branch worth P15,000 and P45,000 respectively. Freight was paid by the home office worth P1,500 included in the cost of merchandise. The home office also incurred P5,700 expenses of which 30 percent was allocated to the branch. On December 31, 2020, the branch incurred a loss of P4,000. What is the balance of the branch account as per home office books. Present solution in good accounting form.