What is the gain (or loss) from the derecognition of liability?
Q: 4. On May 5, 2021, Christy purchased and placed in service a hotel. The hotel cost $10.8 million.…
A: Introduction: Accounting is the procedure for keeping a record of a company's financial activities.…
Q: Mary bought an electric oven listed as RM 3500 cash through an installment plan which she paid RM…
A: Answer:- a Computation of total interest charged:- Cost of oven = RM3500 Less:-…
Q: At the beginning of period, Ammar Co. had balances in account receivable of $ 400,000 and allowance…
A: Account receivable means the amount due from outsider for the goods or services rendered on account.…
Q: You purchase a 6%, 20-year annual coupon bond for its face value. You will hold this bond for two…
A: Return on the bond at the end of the first year = 6% + 6% of 6 6 +…
Q: Jane has written out a check to Manny for $100. Unfortunately, the check was stolen by Stringer…
A: Provision or Concept : A payer can make payment to payee through cheque in mainly two manner:…
Q: ?Which one of the following is not correct regarding activity-based costing Activity-based costing…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: 2 Varch-2A Time left 0:29:02 Fairfield Company management has budgeted the following amounts for its…
A: Break even point in units = Fixed cost/contribution margin per unit
Q: $45,300, 7-month, 6% note dated October 31, 2021 with Q Tile LLC. All of the note's interest is due…
A: Notes receivable are claims for which formal instruments of credit, such as a promissory note, are…
Q: At the beginning of period, Ammar Co. had balances in account receivable of $ 400,000 an allowance…
A: Journal Entry is the first step in the recording process. In includes two column, debit and credit,…
Q: Flexible Budget for Selling and Administrative Expenses for a Service Company Morningside…
A: A flexible budget is prepared on the basis of the budgeted rate and on the basis of different…
Q: Which of the following statements is true about agency efficiency? a. The costs from vertical…
A: The correct answer for the above mentioned question is given in the following steps for your…
Q: Internal Service Fund, Statement of Cash Flows. Prepare a statement of cash flows for the internal…
A: Cash flow statement is a statement that shown inflow and outflow of cash for that particular year or…
Q: Given the nominal rate of 12% per year compounded continuously, find a) Effective interest rate per…
A: When money is borrowed or lent, the concept of interest charge is an important one. The interest may…
Q: The following information is taken from Lab Works Canada testing Service: Month Number of Tests…
A: The high-low method is used to differentiate the mixed cost. The mixed cost is the combination of…
Q: Donna Willis is the advertising manager for Bargain Shoe Store. She is currently working on a major…
A: The contribution margin is calculated as difference between sales and contribution margin. The net…
Q: (Assume that selling and administrative expenses are associated with goods sold.) Levine sells its…
A: "Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Geary Corporation had the following transactions: · Apr. 15 - Received $6,000 from Marion Company…
A: Journal entry shows the recording of transactions during an accounting year and every transaction…
Q: She already signified her intention to be taxed at 8% income tax rate in her 1st quarter return.…
A: Tax liability is the liability which has taken into place and which are required to be paid by the…
Q: You were auditing the borrowings of Faith Logistics Corporation for the year ended December 31,…
A: The notes payable is the long-term liability and it is an agreement where the lender lends money to…
Q: On Septèmber 1, 2021, Trinoma Entertainment borrowed P24,000,000 cash to fund à new Fun Park. The…
A: Journal entry shows the recording of transactions during an accounting year and every transaction…
Q: Edmund spent the following amounts for the maintenance of the machine she bought: PhP 4,000 each…
A: Maintenance cost for 1 to 5 year = 4000 each year Maintenance cost for 6 to 10 year = 6000 each…
Q: cürrent year, Zafril Company acquire an investment property for P48 million. In the acquisitio:…
A: The cost of the investment property would be the present value of annual payments and down payment…
Q: The debits to Work in Process-Assembly Department for April, together with data concerning…
A: The question is based on the concept of cost accounting.
Q: at is the rate earned on total assets for 2014? 2. What is the rate earned on stockholders' equity…
A: Return on assets and return on equity are two measures to measure efficiency and profitability of…
Q: XYZ Motors Corporation has identified activity centers to which overhead costs are assigned. The…
A: Calculation of activity rates using ABC system : 1. Utilities = P600,00030,000 machine hours = P20…
Q: Beginning of year operating assets $3,220,000 End of year operating assets 3,020,000…
A: GIVEN Wildhorse Corp. reported the following: Beginning of year operating assets…
Q: Apart from the benefits required by legislation, what benefit can a company expect from offering…
A: Employee benefit are generally the non cash and indirect benefits that are provided in addition to…
Q: A retailer buys an alarm set for RM 850. Operating expenses are 5 % based on cost. The retailer…
A: Net profit on sale means the excess of selling price over cost of the product.
Q: Standard Direct Materials Cost per Unit from Variance Data The following data relating to direct…
A: Standard cost is the estimated or budgeted cost for a product. Actual cost is the cost incurred in…
Q: The shareholders equity of EDCU CORP as of Jan 1, 2021 appeared below Ordinary shares, 100 par,…
A: Shareholder’s equity represents the net asset of the company. It is the capital invested in the…
Q: Marie Company, a publicly-listed entity, had the following account balances on December 31, 2021:…
A: Cash is an assets recorded in the financial position of the business organization. Characteristics…
Q: The ledgerof VW Co. in 20x1 includes the following: Cash 200,000 Accounts receivable 400,000…
A: Rectification of Errors: It is the method of revising mistakes made in recorded transactions.…
Q: (a) Preparethebankreconciliationstatementasat31August2022. (b)…
A: We are given the cash balance of Isofac company and bank balance as on 31st August 2022 which are…
Q: On December 31, 2013, Dos Company has outstanding purchase commitments for 50,000 gallons at P20 per…
A: A commitment to purchase a specific number of items in the future at a fixed price. If the agreement…
Q: Paul White is preparing a direct labor budget. His sales budget shows total sales units of 15900 and…
A: The budgeted direct labor cost is calculated as the number of direct labor hours multiplied by the…
Q: The adjusting entry to record the depreciation of a building for the fiscal period is a.debit…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: REQUIRED: Prepare a schedule of forecasted receipts from customers (cash and credit) for the period…
A: Budget refers to the estimation of the incomes and expenses for a specified future period as per the…
Q: Internal Service Fund, Statement of Cash Flows. Prepare a statement of cash flows for the internal…
A: Introduction : A cash flow statement is a financial statement that summarises all cash inflows a…
Q: Sheffield Landscaping began construction of a new plant on December 1,2020. On this date, the…
A: An asset is not just valued at the amount paid to acquire it but all the expenses that incur with…
Q: South Dakota Company budgets sales of 22,000 units for January and 30,000 for February. The budgeted…
A: Budgeted production = Total requirements - Beginning inventory Total requirements = Budgeted sales +…
Q: How do you distinguish between Financial Reporting for GAAP, and full Disclosure.
A: DISCLAIMER SINCE YOU HAVE ASKED MULTIPLE QUESTIONS, WE WILL SOLVE THE FIRST QUESTION FOR YOU. IF YOU…
Q: PROBLEM 3 Green Vegetable Mfg. Co. purchased equipment on January 1, 2019, at a cost of $800,000.…
A: Depreciation expense is the reduction in the value of the asset for that period. In the given…
Q: Determine the direct labor rate variance, time variance, and total direct labor cost variance. Enter…
A: Direct labor cost variance arises due to direct labor rate variance and direct labor time variance.…
Q: preference share paid. ddition, company declared and paid $5 cash dividends to all ordinary…
A: Earnings per share Earnings per share refer to the important indicator that is helpful in the…
Q: On January 1, 2018, Claude paid the annual rental for 2018 and 2019 including the security deposit…
A: GIVEN Claude leased a facility from ML partnership in January 1, 2018. Terms of the lease were…
Q: Unit VI question 2
A: Solution:- 1-a)Computation of net income if Increase selling price by 10% with no change in total…
Q: create 2 problems (required must vary) for each type of depreciation. 1. Straight Line Method 2.…
A: Depreciation Calculation There are different method in which depreciation can be calculated in the…
Q: The company issued shares of common stock in exchange for $ 100,000 in cash. The company purchased…
A: Journal entries are the basic method for recording financial transactions in the books of accounts.…
Q: Job-Order Costing versus Process Costinga. Auto manufacturingb. Dental servicesc. Auto repaird.…
A: Job order costing is utilized when customers purchase small, one-of-a-kind quantities of things.…
Q: Clearcast Communications Inc. is considering allocating a limited amount of capital investment funds…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Kochi Company showed the following data with respect to a matured obligation:
Notes payable 1,100,000
Interest payable 200,000
The company negotiated with the creditor for the settlement of the notes payable. The entity transferred a transportation vehicle with carrying amount of P800,000 and a fair value of P1,100,000. Assume that only the notes payable are to be extinguished, while the accrued interest is paid in cash together with the transportation vehicle. What is the gain (or loss) from the derecognition of liability?
Step by step
Solved in 2 steps
- Japee, Inc. assigned P240,000 of its receivables to PJTC Finance company. A note payable was executed. The contract provided that PJTC would advance 85% of the gross amount of the receivables. The contract specified recourse and non-notification; therefore, Japee’s debtors continue to remit directly to it; the cash from customers is then remitted to the finance company. The cash remitted is first applied to the finance charges, with the remainder applied to the principal. During the first month, customers owing P164,000 paid cash, less sales returns and allowances of P6,400. The finance charge at the end of the first month was P1,400.How much is the disclosed equity in assigned accounts as of the end of the first month? *Ebasan Company factored P5,000,000 of accounts receivable. Control was surrendered by the entity. The transaction met the criteria to be accounted for as sale but subject to recourse for nonpayment. The fair value of the recourse obligation is P250,000. The finance company assessed a fee of 6% and retained a holdback equal to 10% of the accounts receivable. In addition, the firance company charged 12% Interest computed on a welghted average time to maturity af the accounts receivable for 60 days. What total amount should be recognized initially as loss on factoring?The Statement of Affairs for Ivan Corporation shows that approximately P0.78 on the peso probably will be paid to unsecured creditors without priority. The corporation owes JICR Company P23,000 on a promissory note, plus accrued interest on P940. Inventories with a current fair value of P19,200 collateralized the note payable. Compute the amount that JICR Company should receive from Ivan Corporation assuming that the actual payments to unsecured creditors without priority consist of 78% of total claims.
- In 2X19, Land Corporation acquired land by paying P2,000,000 and signing a note with a face value of P6,000,000. On the note’s due date, December 31, 2X21, Land owed P480,000 of accrued interest and P6,000,000 on the note. Land was in financial difficulty and was unable to make any payments. To solve the problem, Land and the bank agreed to amend the note as follows: • Extended the maturity to December 31, 2X23. • The P480,000 interest due on December 31, 2X21 was forgiven. • Land Corporation would be required to make an annual interest payment of P540,000 every December 31 starting 2X22. • Transaction cost incurred that is directly related to the debt restructuring was P16,850. As of December 31, 2X21, the yield rate based on the restructured debt and after considering the amount of transaction cost is 6.24%. 5. What type of debt restructuring is being described by the case? 6. What is the total gain from restructuring? 7. What amount should Land Corporation report…In 2X19, Land Corporation acquired land by paying P2,000,000 and signing a note with a face value of P6,000,000. On the note’s due date, December 31, 2X21, Land owed P480,000 of accrued interest and P6,000,000 on the note. Land was in financial difficulty and was unable to make any payments. To solve the problem, Land and the bank agreed to amend the note as follows: • Extended the maturity to December 31, 2X23. • The P480,000 interest due on December 31, 2X21 was forgiven. • Land Corporation would be required to make an annual interest payment of P540,000 every December 31 starting 2X22. • Transaction cost incurred that is directly related to the debt restructuring was P16,850. As of December 31, 2X21, the yield rate based on the restructured debt and after considering the amount of transaction cost is 6.24%. 8. What is the carrying amount of the obligation that should be reported in 2X22 statement of financial position? 9. Provide the journal entry for debt…In 2X19, Land Corporation acquired land by paying P2,000,000 and signing a note with a face value of P6,000,000. On the note’s due date, December 31, 2X21, Land owed P480,000 of accrued interest and P6,000,000 on the note. Land was in financial difficulty and was unable to make any payments. To solve the problem, Land and the bank agreed to amend the note as follows: • Extended the maturity to December 31, 2X23. • The P480,000 interest due on December 31, 2X21 was forgiven. • Land Corporation would be required to make an annual interest payment of P540,000 every December 31 starting 2X22. • Transaction cost incurred that is directly related to the debt restructuring was P16,850. As of December 31, 2X21, the yield rate based on the restructured debt and after considering the amount of transaction cost is 6.24%. 5. What type of debt restructuring is being described by the case? 6. What is the total gain from restructuring? 7. What amount should Land Corporation report…
- On January 1, 20x1, Diminished Co. paid cash down payment of P400,000 and issued a noninterest bearing note of P1,800,000 in exchange for a piece of land. The note is due in three equal annual installments every December 31. Case 1: The land has a fair value of P2,000,000. Provide entry on initial recognition. Case 2: The fair value of the land cannot be determined reliably. The prevailing market rate of interest for similar debt instruments in 9% . Provide the journal entry on initial recognition and the entries for the subsequent payments on the note.On January 1, 20x1, an entity has an outstanding note payable with carrying amount of P1,000,000. On this date, the debtor agrees to receive equipment with historical cost of P1,800,000, accumulated depreciation of P900,000 and fair value of P850,000 in full settlement of the note payable. Requirement: Compute for the gain or loss on the derecognition of the note payable.On January 1, 2020, Alpha Company issued a noninterest-bearing note for a piece of equipment acquired at P500,000. Alpha Company paid a down payment of P100,000 and issued the note for the remaining P400,000 payable in installments of P100,000 every December 31. The cash price of the equipment is P380,000. The entity does not account for financial instruments using the fair value option. The entry to record this transaction will involve a?
- On Jan. 1, 20x1, an entity has an outstanding note payable with carrying amount of P 1,000,000. On this date, the debtor agrees to receive the equipment with historical cost of P 1,800,000, accumulated depreciation of P 900,000 and fair value of P 850,000 in full settlement of the note payable. Compute for the gain or loss on the derecognition of the notes payable:a. P 0b. P 150,000 gainc. P 50,000 lossd. P 100,000 gainOn December 31, 2012, Columbia Company shows the data presented in the image with respect to its matured obligation. The company is threatened with a court suit if it could not pay its maturing debt. Accordingly, the company enters into an agreement with the creditor for the transfer of a non-cash asset in full settlement of the mortgage. The agreement provides for the transfer of real estate carried in the books of Columbia at P3,000,000. The real estate has a current fair market value of P4,500,000. What amount should Columbia recognize in profit or loss for the year 2012 as a result of this transaction? Notes Payable 5,000,000 Accrued Interest Payable 500,000 a. P500,000 b. P1,000,000 c. P1,500,000 d. P2,500,000Sakuragi Corporation engaged in the following transactions with regards to financing of receivable during 2021:· On February 1, Sakuragi company factored receivables with a face amount of P300,000 BPI. BPI assessed a factoring fee of 3% of the receivables and retains 5% of the receivables factored. The factoring was done on a without recourse basis, thus transferring all significant risks and rewards related to the receivables to BPI.· On October 1,2021, Sakuragi discounted one year 10% P40,000 interest-bearing notes receivable that will mature on December 31,2021 to Mitsui Bank without recourse. The bank’s discount rate was 15%.· Obtained a P500,000, 6 month, 15% loan from Citibank on November 1, 2021. The company pledge P600,000 of accounts receivable as security for the loan. Sakuragi received the loan less the total interest in advance and a 2% of the loaned amount as service charge.How much is the total cash received from the financing of accounts receivables?…