Under the accrual basis, rental income of HAWK CORP. for the calendar year 2014 is P600,000. Additional information regarding rental income are presented below: Unearned rental income, January 1, 2020 P50,000 Unearned rental income, December 31, 2020 75,000 Accrued rental income, January 1, 2020 30,000 Accrued rental income, December 31, 2020 40,000 Under the cash basis, how much rental income should be reported by HAWK CORP. in
Q: Apachi Company must determine the December 31, 2020 year-end accruals foradvertising and rent…
A: The accrued liability refers to an expense incurred by a business but not yet paid. These are costs…
Q: Presented below are three revenue recognition situations. (a) Groupo sells goods to MTN for…
A: According to revenue recognition, sales revenue is recognized once the goods and services from the…
Q: On June 30, 2021, Casio Sony Company sold a property carried in inventory at a cost of P1,894,200…
A:
Q: Consider the following information from the record of Ornamental Green Garden at the end of the…
A: Total liabilities = account payable + interest payable + accrued interest + notes payable = 600000 +…
Q: Mr. A, a real estate dealer, sold real estate for P2,000,000 on November 30, 2019. The cost of the…
A: Sales are the proceeds received from the delivery of goods and services. Cost means actual expenses…
Q: On May 1, 2020, Zuhoor Muscat Company agreed to provide services for SQU of RO 200,000, over the…
A: Revenue Recognition - As the relevant rules of the GAAP revenue should be recognized when the…
Q: On January 2, 2021, Integrity Co. sold merchandise to Honesty, Inc. for P2,500,000. The cost of…
A: The installment sales method recognizes revenue and income proportionately as cash is collected. The…
Q: A, a real estate dealer sold a house and lot for 600,000 on November 20, 2021. The cost of the…
A: Income calculation for 2021 Installment = 125,000/600,000 = 20.83% Total gain on sale of house =…
Q: On September 1, 2019, Donna Equipment signed a one-year, 8% interest bearing note payable for…
A: Note means an instrument acknowledging as debt due from one party to another party. Interest bearing…
Q: Under accrual basis, rental income of Kamahal-Mahal Company for the year 2020 is P600,000.…
A: Accrual basis: Under accrual basis accounting, revenue and expenses are recognized when they are…
Q: CAB Co. reported rent income of P600,000 under cash basis accounting for 2020. Additional…
A: Cash basis of accounting is that accounting methodology in which all the expenses paid and income…
Q: On October 1, 2021, Grey Corp. purchased land by signing a six-month, 4% note for $225,000. The…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: On April 1, 2019, Char Company borrowed P5,000,000 and signed a 2-year note bearing interest at 12%…
A: Interest accrued for April 1, 2019 to March 31, 2020 = Amount borrowed x rate of interest x no. of…
Q: On March 1, 2020, LINGATONG Company has received a P10,000, two year note bearing interest at 12%…
A: Lingatong Company Receive P10,000 Accrued Interest Receivable at 31st Dec,2021 is Interest Expense…
Q: On March 31, 2020, the CHICAGO BULLS Corporation issued a P3, 000, 000 12% promissory note for…
A: Interest expense from January 1 2021 to March 31 2021 = Amount payable x rate of interest x no. of…
Q: 1-year advanced rent of P30,000 to apply for 2020 was received from a sublease contract. P40,000…
A: Net Sales = 20,00,000 Purchases = 12,00,000 Opening Inventory = 2,00,000 Closing Inventory =…
Q: Light Co. reported rent income of P600,000 under cash basis accounting for 2020. Additional…
A: Rental Income:- It is an income that appears in the Income statement. It is that income which one…
Q: Umasa Company reported rental revenue of P2,210,000 in the cash basis income tax return for the year…
A: Under Cash basis of accounting revenue is recorded when the actual cash received, the major drawback…
Q: For the year ended Dec. 31, 2020, The Company paid interest totaling P100,000. The prepaid interest…
A: Interest expense refers to the cost which is incurred through the entity for the borrowed funds. It…
Q: On January 1, 2020, Karakaraka Co. started construction of a new office building on January 1, 2020,…
A: Borrowed funds used for building=P20,0002=P10,000
Q: XYZ Company lent $9,000 at 10% interest on December 1, 2019. The amount plus all interests accrued…
A: Formula: Interest amount = Loan amount x Interest rate x Time period
Q: Ajam Inc. shows the following selected adjusted account balances at March 31, 2019: $ 58,000…
A: Ajam Inc. Balance Sheet March'31, 2019 Liabilities Current Liabilities: Accounts…
Q: Umasa Company reported rental revenue of P2,210,000 in the cash basis income tax return for the year…
A: The income statement represents the net income or net loss that is calculated by deducting the…
Q: Edith Motors sells automobiles on installment. Information presented below relates to Edith's…
A: Calculation of realize gross profit in 2021 are as follows
Q: CAB Co. reported rent income of P600,000 under cash basis accounting for 2020. Additional…
A: Revenues are recognized when cash is collected, and expenditures are recognized when cash is paid…
Q: Described below are certain transactions of Pharoah Company for 2021: On May 10, the company…
A: 9% note issued on June 1 for $64,800 ($96,000 - $31,200) has accrued interest for 7 months till…
Q: The business receives a promissory note of P50,000, carrying an interest rate of P10%. The note is…
A: Accrued income is that income which are earned by the business but the amount is yet to be received…
Q: On July 1, 2020 Walker Inc. signed a $600,000, 15 month, 10% note payable. At due date, the…
A: This is based on bill of exchange, in the given case since note is payable in 15 months and the same…
Q: Deem Holdings Inc had cash and cash equivalents at January 1, 2019 of P400,000. The transactions and…
A: Cash Flow Statement - Under Cash Flow, there are three types of activities involved - Operating…
Q: Able Inc. borrowed $60,000 on October 1, 2019 and agreed to pay back $75,000 on October 1, 2022. How…
A: Interest: It refers to the charge which is paid by a borrower to the lender for using his funds.
Q: The prepaid rent is P12,000 good for three months starting November 30, 2020. The balance sheet date…
A: As per the asset method, we need to record prepaid rent at the time of amount paid, and adjusting…
Q: A company acquires assets recorded at $240,000 by paying $120,000 cash and taking on a 12 year…
A: Loan =240000-120000=120000/24=$5000 So instalment $5000 semi annual…
Q: For the year ended Dec. 31, 2019, Nando Company paid interest totaling P100,000. The prepaid…
A: Interest expense is an expense that is due on the amount borrowed from the lender. It is reported in…
Q: On July 3, 2020, Franky purchased on account specialty feeds worth P800,000 net of VAT. A wholesaler…
A: VAT means the value added tax which is levied on sale and purchase . Vat paid on purchases is booked…
Q: CAB Co. reported rent income of P600,000 under cash basis accounting for 2020. Additional…
A: Cash collection in 2020 is the sum of cash rental income and cash received that is unearned. The…
Q: during november 2020 marvin's pre owned vechiles lts sells high end car for 120,000. the cost of the…
A: Net income is the difference between total revenues generated and total expense incurred during the…
Q: As of December 31, 2020, Andrei Corporation has P 5,000,000 contract in progress on which the…
A: Percentage completion method uses the percentage of work that has completed. So, the income is…
Q: Cebu Company reported a retained earnings balance of P5,000,000 at January 1, 2020. In August 2020,…
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Shining Star LLC come Statement for the year ending 31 December 2019 t Sales OMR 25000 st of Goods…
A: Formulas: Net Income after tax = Net income before tax - Tax expenses Tax Expense = Net Income x…
Q: On October 1, 2019, a company acquired land by issuing a two-year note, 12%, P4,000,000 note…
A: Interest expense = Face value of notes x rate of interest x no. of months / 12
Q: On May 1, 2021, Nees Manufacturing lends $10,000 to Roberson Supply using a 9% note due in 12…
A: Interest revenue = Amount of notes x rate of interest x period May 1, 2021 to December 31,2021 = 8…
Q: On January 1, 2020 SANA ALL MAHAL Co. acquired land by issuing a three-year, 12%, P4,000,000 note…
A: Working note: Computation of carrying amount of notes payable on January 1, 2021:
Q: Berlin Corp. reported the following data for 2019: Total net sales made to customers were P2,000,000…
A: Introduction:- Earned money that is subject to federal or state taxation is referred to as taxable…
Q: HANGANG Park has life insurance policies on its officers’ lives. Annual premiums amount to P50,000.…
A: The amount of money received when an insurance policy or annuity has been cancelled is known as cash…
Q: Maria reported has the following transactions for the year 2020. Gross sales-100,000 php Sales…
A: (1) Maria has 2 incomes - Business and Interest Income on Bank Deposits. (2) Net Sales = Gross Sales…
Q: Under the accrual basis rental income of EL Company for the calendar year 2020 is P600,000.…
A: Unearned revenue:- Unearned revenue is also known as deferred revenue which include the amount of…
Q: Under the accrual basis, rental income of EM Corporation for the calendar year 2019 is ₱600,000.…
A: Unearned Income(Advance Income) are those income which have been received by the firm during the…
Q: Dilraba Co. sold equipment in exchange for a P750,000, non-interest bearing note receivable in 5…
A: Unearned revenue is the revenue that has not been earned by the company but the payment for the same…
Q: On February 14, 2019, Prime Company sold 50 air conditioning units. The sale price for each unit is…
A: Sales Price-: The price that is reimbursed by the customer at the time when something is purchased…
Q: The following data for Roco Corp. Are available for 2021: Installment accounts, receivable 12/31/21…
A: Given information: Installment Accounts Receivable at year end = 100000 Installment Sales = 350000
Step by step
Solved in 2 steps
- Under accrual basis, an entity reported rental income for the current year of P1,500,000. The entity provided the following additional information regarding rental income: Unearned rental income, January 1 125,000 Unearned rental income, December 31 187,500 Accrued rental income, January 1 75,000 Accrued rental income, December 31 100,000 Under cash basis, what amount was received from rental in the current year? Group of answer choices 1,462,500 1,562,500 1,537,500 1,637,500A business has received £98,200 of rental income in the year ended 30 September 2021. Details of the rent received in advance and in arrears are shown below. Rent received in advance Rent arrears 30 September 2020 £ 2,400 7,000 A. £98,200 B. £104,000 C. £97,300 D. £92,400 30 September 2021 £ 4,600 3,400 Which of the following rental income figures should be included in the income statement for the year ended 31 September 2014?19. Under the accrual basis, rental income of Lion’s Pride Company for the current calendar year is P60,000. Additional information regarding rental income are: Accrued rental income, December 31 4,000 Accrued rental income, January 1 3,000 Unearned rental income, December 31 7,500 Unearned rental income, January 1 5,000 How much actual cash rental was received by Lion’s Price Company in the current year?
- Prepare the income statements and balance sheets for years 2018 and 2019 for Thompson Company using the following information. The balance sheet numbers are at the end of year figures.Item20182019Accounts Payable120.0150.0Accounts Receivable150.0180.0Accumulated Depreciation330.0360.0Cash & Cash Equivalents10.012.0Common Stock150.0200.0Cost of Goods Sold750.0850.0Depreciation25.030.0Interest Expense30.033.0Inventory200.0180.0Long-term Debt150.0150.0Gross Plant & Equipment650.0780.0Retained Earnings208.5225.0Sales1,500.01,700.0SG&A Expenses500.0570.0Notes Payable51.567.0Tax Rate21%21%(2) Answer the following questions:(a) How much did Thompson Company spend in acquiring fixed assets in 2019?(b) How much dividend did Thompson Company pay out during 2019?(c) Using the end of year numbers, did the long-term solvency ratios improve or deteriorate from 2018 to 2019? Answer this question using at least two long-term solvency ratios.(d) Using the end of year numbers, did the asset…Refer to the information for Cox Inc. above. What amount would Cox record as depreciation expense for 2019 if the units-of-production method were used ( Note: Round your answer to the nearest dollar)? a. $179,400 b. $184,000 c. $218,400 d. $224,000These are some information for the balance sheet as of December 31, 2019 of MUST Corp.Accounts payable, consisting of purchase of goods, P278,000 and cost of goods received on consignment of P22,000,total P300,000Income tax due for 2019, (due and paid in the three (3) quarters of 2019, P87,500) 122,500Stock dividends payable 60,000Accrued expenses 7,800Reserve for contingencies 20,000Overdraft in Security Bank checking account 6,200Based on the above information, how much is the total liabilities to be reported in the balance sheet as of December 31,2019 of MUST Corp.?
- Please explain how you get the journal entries below. The DeVille Company reported pretax accounting income on its income statement as follows: 2021 $ 355,000 2022 275,000 2023 345,000 2024 385,000 Included in the income of 2021 was an installment sale of property in the amount of $30,000. However, for tax purposes, DeVille reported the income in the year cash was collected. Cash collected on the installment sale was $12,000 in 2022, $15,000 in 2023, and $3,000 in 2024.Included in the 2023 income was $10,000 interest from investments in municipal governmental bonds.The enacted tax rate for 2021 and 2022 was 40%, but during 2022, new tax legislation was passed reducing the tax rate to 25% for the years 2023 and beyond.Required:Prepare the year-end journal entries to record income taxes for the years 2021–2024. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)Do parts a to d Accounting for Income Taxes Yoda Company is in the process of accounting for its income taxes for the year ended December 31, 2020. The following information came from Yoda's accounting and taxation records: Accounting income before income taxes for 2020 $ 98,967 Depreciation expense for property, plant, and equipment for 2020 $ 222,227 Capital cost allowance to be claimed on Yoda's 2020 income tax return $ 244,450 Book value of property, plant, and equipment at December 31, 2019 $ 1,399,268 Undepreciated capital cost of property, plant, and equipment at December 31, 2019 $ 1,203,370 Assume that there were no additions or disposals of property, plant, and equipment during 2020. In 2020, Yoda began offering a 1-year warranty on all merchandise sold. Following are details pertaining to this warranty: Warranty expense for 2020 for accounting purposes $ 38,860…X Company collected P12,350 in interest during 2019. X showed P1,850 in interest on its December 31, 2021 statement of financial position and P5,300 on December 31, 2020. How much is the Interest Revenue to be reported on X’s statement of comprehensive income in 2021?
- Pasta Corporation acquired 75% of Sauce Company on January 1, 2020 for $566,250 cash. The fair value of the other 25% ownership interest is estimated to be $188,750. ADDITIONAL INFORMATION: On the date of acquisition: * The Book Value of Sauce Company's net identifiable assets was $652,000. * Sauce's Company's Plant Assets were undervalued by $75,000 (remaining life was estimated to be 5 years). * Sauce's Company's Inventories were overvalued by $9,000 (all sold by year end). * New Goodwill was determined to be $37,000. At year-end, it was determined that the New Goodwill was impaired by $5,800. * For 2020, Sauce reported net income of $146,500 and paid dividends of $26,000. Assume that Pasta Company uses the fully adjusted equity method to account for its Investment in Sauce.Following are the current asset and current liability sections of the balance sheets for Freedom Inc. at January 31, 2020 and 2019 (in millions): Current Assets Cash Accounts receivable Inventories Total current assets Current Liabilities Note payable Accounts payable Other accrued liabilities Total current liabilities January 31, 2020 Working capital Current ratio 6 EL EL $ 21 $ 15 January 31, 2019 01/31/2020 01/31/2019 9 18 $ 25 Required: a. Calculate the working capital and current ratio at each balance sheet date. (Enter "Working capital" in millions of dollars (1.e.. 10,000,000 should be entered as 10). Round your "Current ratio" to 2 decimal places.) $12 b. Evaluate the firm's liquidity at each balance sheet date. Based on the working capital and current ratio measures, the firm has become more liquid over the 2-year period. O Based on the working capital and current ratio measures, the firm has become less liquid over the 2-year period. c. Assume that the firm operated at a loss…Given the following account balances of MASK RIDER Co. for the year ended December 31, 2020, prepare a Statement of Financial Position using the report form. Mask Rider, capital Beg. Balance PO Contribution 30, d00 DUE ON MAY 15, 2021 Withdrawal 15, 000 Additional cortribution 5, 000 Net Income Ending Balance 57, 450 Property, Plant and Equipment P 300, 000 Accumulated Depreciation 5, 000 Accounts payable B, 110 Uneamed income 1, 395 Cash 44, 535 Prepaid rent 5, 000 Salaries payable 1, 000 Lang-term note payable 23. 000 Accounts receivable 575 Merchandise Inventory 15,345 Utilities payable 4. 00