Using the cost model, what is the amount reported in the 2022 profit or loss? P135,000 P270,000 P300,000 P(300,000) a. b. C. d. 20 Use data of MC19. Under the fair value model, what is the amount reported in the 2022 profit or loss?
Q: 1. On June 4, Star Company sold OMR670,000 of merchandise to Ahmed Co., terms 2/10, n/30, FOB…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: On March 12, Medical Waste Services provides services on account to Grace Hospital for $10,700,…
A: There are three golden rules in accounting for recording the transaction : Debit what comes in ,…
Q: Carol contributes property with a $10,000 basis and a $60,000 book value to a partnership for a 25%…
A: Introduction: A liability is an obligation between two parties that has not yet been executed or…
Q: 1. When an item of asset is transferred to and from the classification investment property, carried…
A: Hi student Since there are multiple questions, we will answer only first question. If you want…
Q: Direct Materials and Direct Labor Variance Analysis Abbeville Fixture Company manufactures units in…
A: Lets understand the basics. Direct material price variance indicates the variance between the rate…
Q: On January 1, 2021, Kristine Company acquired 10% of the outstanding voting shares of another…
A: On Jan-01 , 2021 Kristine Company Acquired 10% outstanding Voting shares of another entity On…
Q: Mauro Products distributes a single product, a woven basket whose selling price is $23 per unit and…
A: Formula: Break even point in units = Fixed cost / Unit contribution margin
Q: Miami Solar manufactures solar panels for industrial use. The company budgets production of 4,500…
A: Budgets are prepared by the management for estimating the total revenue and expenses to be incurred.…
Q: ebits and total credits in the income statement column has to be the same as the difference between…
A: A worksheet (sometimes known as a spreadsheet) is made up of cells into which data may be entered…
Q: Oven Roasted sold $394,000 of consumer electronics during July under a two-year warranty. The cost…
A: The journal entries are prepared to keep the record of day to day transactions of the business on…
Q: Babak Industries is a division of a major corporation. Last year the division had total sales of…
A: Formula: Division Turnover = Sales revenue / Average operating Assets
Q: An asset with a cost of $80,000 is leased on 1/1/x1. The lease is a sales-type lease for the lessor.…
A: Lease is a contract between two parties in which one party is authorized to use the assets. The…
Q: Prepare the balance sheet using the historical cost and Current cost model. Assume that during the…
A: Needs to prepare the balance sheet as per historical cost and current model Also needs to prepare…
Q: Multiple Choice
A: The accounting of contingent liabilities As per GAAP, contingent liabilities can be broken down into…
Q: Walmart Blackout Power Company constructed a new power plant to supply energy to the Castle…
A:
Q: REQUIRED: 1. Calculate the breakeven point both in sales volumes (number of pockets) and sales…
A: Introduction : The break-even point is the moment at which total cost and total income are equal,…
Q: H. The following information was obtained from the records of Diwata Traders: P 254,000 119,000…
A: Balance Sheet - The balance sheet is the financial statement that includes balances of assets and…
Q: A subsidiary ledger is a _________ . a. listing of the components of control account balances b.…
A: Solution: A general ledger have the balances for each asset, liability, and equity account. A…
Q: Additional Algo 12-6 Quantity Discounts A store estimates their holding costs at 34% and incurs a…
A: Annual Holding Cost=Holding Cost per unit×Quantity Ordered2 Annual Ordering Cost=Ordering Cost per…
Q: Accounts receivable turnover %3D
A: Sample company's balance sheet and income statement is given. On the bases of data we can find…
Q: On March 12, Medical Waste Services provides services on account to Grace Hospital for $10,700,…
A: A journal entry is a recording of a commercial transaction in the accounting system of a company.…
Q: hip a
A: Partnership Partnership is a term used when 2 or more individuals join hands to do business for the…
Q: Northwest Fur Co. started the year with S93,000 of merchandise inventory on hand. During the year,…
A: Formula: Net purchases = Purchases - Purchase returns + Freight - Purchase discount
Q: Chevy Company owns 50% of another entity’s preference share capital and 40% of its ordinary share…
A: The correct answer for the above mentioned question is given in the following steps for your…
Q: 1- Payroll tax liability payments . А. Should be entered through pay bills. В. Can be entered…
A: In the process of recording transactions related to a business, every aspect of payment incurred and…
Q: ) An office building is currently for sale, and you are thinking of purchasing it. From your…
A: Desired amount of Investment is needs to be calculated for required rate of return Income for 15…
Q: January 1 Common stock is issued in exchange for cash in the amount of. .. 410,000 The company…
A: Date Particulars debit Credit Jan 1 Common stock 410000 To cash 410000 Jan…
Q: Depreciation by Three Methods; Partial Years Perdue Company purchased equipment on October 1 for…
A: Depreciation rate= 1/3*100= 33.33%
Q: Steel Magnolia Incorporated purchased a trademark 7 years ago for $275,000. Steel Magnolia believed…
A: An impairment loss seems to be the amount whereby an asset's or cash-generating unit's carrying…
Q: Caring Shop is a gift shop located in The Natural History Museum. Caring shop has annual sales…
A: Answer:- Tax definition:- Taxes are one of most important and necessary payment levied by the…
Q: Hammer Corporation wants to purchase a new machine for $240,000. Management predicts that the…
A: Internal Rate of Return: The internal rate of return (IRR) is a financial research indicator that is…
Q: Adam contributed P500,000 and Aldrin contributed his business valued at P450,000 to na partnership.…
A: The question is related to Partnership Accounting. The Bonus Accounting Method the new partner’s…
Q: On May 10, 2019, Horan Company purchased equipment for $25,000. The equipment has an estimated…
A: The annual depreciation expense has been shown as follows: Depreciation expense=Cost-Residual…
Q: Kenneth McFarland's weekly gross earnings for the week ending March 9 were $2,170, and her federal…
A: Formula: Social security tax amount = Gross pay x Social security tax rate
Q: s in his business
A: As per IRS rules you can depreciation apartment building used for business as under - Cost of…
Q: uring September, the fund was depleted by the following disbursements: Shipping expense 740 240…
A: The petty cash fund is established to maintain the cash balance for the smaller cash transactions…
Q: The manufacturing costs of Barretto Enterprises for three months of the year follow: Total…
A: High-low method: It is the method in which Fixed cost and variable costs are separated from the…
Q: Product Quantity Cost Net Realizable Value Revolvers 17 124 159 Spurs 28 25 20 Hats 11 54 44 $3,152.…
A: Formula: Inventory value = Quantity x lower of cost or NRV
Q: The statement that is NOT CORRECT about the general ledger is __________ . a. postings are based on…
A: Ledger is secondary book of the business in which the transactions which have earlier been recorded…
Q: Atlantic Surf manufactures surfboards. The company's budgeted sales units for the next three months…
A: ATLANTIC SURF Production Budget July August Budgeted Sales units 4,400…
Q: Assume that the entity is a medium-size and the company policy is to account this type of investment…
A: The correct answer for the above mentioned question is given in the following steps for your…
Q: Your calendar year company places a $85,000 inventory order December 27 which shipped to your…
A: FOB Shipping Point: As per FOB Shipping Point, the buyer is responsible for goods damaged if any in…
Q: 7- Presented below is selected information related to Sultan Company at December 31, 2020. Sultan…
A: The net income is calculated as difference between revenue and expenses of the current period.
Q: Indigo Corporation and Blue Corporation, two companies of roughly the same size, are both involved…
A: Ratios are computed to analyse the performance of an entity.
Q: Calculating Standard Quantities for Actual ProductionGuillermo’s Oil and Lube Company is a service…
A: Calculation of Standard Quantity of Oil that should have been used for 980 oil changes Standard…
Q: What is the net present value ? And should the van be purchased? unit VIII Question 15 part a
A: Net present value NPV is the method of capital budgeting which calculates the present worth of net…
Q: The payroll register of Chen Heritage Co. indicates $2,220 of social security withheld and $55 of…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: Entries for Sale of Fixed Asset Equipment acquired on January 8 at a cost of $107,330 has an…
A: Depreciation is an expense which shows the amount decrease in the value of fixed assets due to its…
Q: Sheridan Homes Ltd., a private company reporting under ASPE, reported the following for the year…
A: Cash Flow Statement (Partial) For the year ended December 31, 2021 Amount (In $) Amount (In…
Q: 1. How would you suggest the standard-setter or the regulator mitigate the potensial decrease in…
A: Here asked about the standard setter or the regulator mitigate the potential in the decrease in the…
Step by step
Solved in 2 steps
- On May 10, 2019, Horan Company purchased equipment for 25,000. The equipment has an estimated service life of 5 years and zero residual value. Assume that the straight-line depreciation method is used. Required: Compute the depreciation expense for 2019 for each of the following four alternatives: 1. Horan computes depreciation expense to the nearest day. (Use 12 months of 30 days each and round the daily depreciation rate to 2 decimal places.) 2. Horan computes depreciation expense to the nearest month. Assets purchased in the first half of the month are considered owned for the whole month. 3. Horan computes depreciation expense to the nearest whole year. Assets purchased in the first half of the year are considered owned for the whole year. 4. Horan records one-half years depreciation expense on all assets purchased during the year.Mystic Pizza Company purchased a patent from Prime Pizza Plus on January 1, 2019, for 72,000. The patent has a remaining legal life of 9 years. Prepare the journal entries to record the acquisition and the amortization for 2019, assuming Mystic Pizza amortizes its patents using the straight-line method over the life of the asset.On July 1, 2018, Mundo Corporation purchased factory equipment for 50,000. Residual value was estimated at 2,000. The equipment will be depreciated over 10 years using the double-declining balance method. Counting the year of acquisition as one-half year, Mundo should record 2019 depredation expense of: a. 7,680 b. 9,000 c. 9,600 d. 10,000
- Depreciation Methods Nickle Company purchased three identical assets for 17,000 on January 2, 2019. Each asset has an expected residual value of 1,000. The depreciation expense for 2019 and 2020 is shown below for three assets: Required: 1. Next Level Which depreciation method is the company using for each asset? 2. Compute the depreciation expense for 2021 and 2022 for each asset.Kam Company purchased a machine on January 2, 2019, for 20,000. The machine had an expected life of 8 years and a residual value of 300. The double-declining-balance method of depreciation is used. Required: 1. Compute the depreciation expense for each year of the assets life and book value at the end of each year. 2. Assuming that the company has a policy of always changing to the straight-line method at the midpoint of the assets life, compute the depreciation expense for each year of the assets life. 3. Assuming that the company always changes to the straight-line method at the beginning of the year when the annual straight-line amount exceeds the double-declining-balance amount, compute the depreciation expense for each year of the assets life.The following intangible assets were purchased by Goldstein Corporation: A. A patent with a remaining legal life of twelve years is bought, and Goldstein expects to be able to use it for seven years. B. A copyright with a remaining life of thirty years is purchased, and Goldstein expects to be able to use it for ten years. For each of these situations, determine the useful life over which Goldstein will amortize the intangible assets.
- Depreciation Methods Sorter Company purchased equipment for 200,000 on January 2, 2019. The equipment has an estimated service life of 8 years and an estimated residual value of 20,000. Required: Compute the depreciation expense for 2019 under each of the following methods: 1. straight-line 2. sum-of-the-years-digits 3. double-declining-balance 4. Next Level What effect does the depreciation of the equipment have on the analysis of rate of return?Comprehensive: Acquisition, Subsequent Expenditures, and Depreciation On January 2, 2019, Lapar Corporation purchased a machine for 50,000. Lapar paid shipping expenses of 500, as well as installation costs of 1,200. The company estimated that the machine would have a useful life of 10 years and a residual value of 3,000. On January 1, 2020, Lapar made additions costing 3,600 to the machine in order to comply with pollution-control ordinances. These additions neither prolonged the life of the machine nor increased the residual value. Required: 1. If Lapar records depreciation expense under the straight-line method, how much is the depreciation expense for 2020? 2. Assume Lapar determines the machine has three significant components as shown below. If Lapar uses IFRS, what is the amount of depreciation expense that would be recorded?Hunter Company purchased a light truck on January 2, 2019 for 18,000. The truck, which will be used for deliveries, has the following characteristics: Estimated life: 5 years Estimated residual value: 3,000 Depreciation method for financial statements: straight-line method Depreciation for income tax purposes: MACRS (3-year life) From 2019 through 2023, each year, Hunter had sales of 100,000, cost of goods sold of 60,000, and operating expenses (excluding depreciation) of 15,000. The truck was disposed of on December 31, 2023, for 2,000. Required: 1. Prepare an income statement for financial reporting through pretax accounting income for each of the 5 years, 2019 through 2023. 2. Prepare, instead, an income statement for income tax purposes through taxable income for each of the 5 years, 2019 through 2023. 3. Compare the total income for all 5 years under Requirements 1 and 2.