Mando, manager of XXX Domestic Corporation, received a stock option from the corporation entitling him to buy 5,000 shares of XXX at P10.00 per share. After some time, Mando exercised his option when the shares were selling at P15 00 per share The
Q: Black company owned 50,000 ordinary shares which were purchased for P120 per share. During the year,...
A: Investment means the amount of money invested in a property or asset in order to get returns in futu...
Q: ABC Corporation plans to issue an 8%, 15-year, P5,000,000 face value bonds. It will incur P300,000 a...
A: Introduction: The present value of cash to be received in the future with one or more payments that ...
Q: e Collection period 21.9
A: Average collection period is the average time after which collections are being made by debtors.
Q: For 2020, Ross Corporation had pretax ordinary income of $501,000 and sold for $149,000 an asset pur...
A: Lets understand the basics. This question deals with the USA taxation as per currency symbol. For ta...
Q: What is the difference between the aggregate and entity theory of partnership taxation? Can you plea...
A: A partnership is a kind of business structure in which two or more people agree to carry out commerc...
Q: General Optic Corporation operates a manufacturing plant in Arizona. Due to a significant decline in...
A: 1. Calculation of Impairment loss Impairment loss = Book value - Estimated fair value Book value=Cos...
Q: ed on giving them a significant cash bonus in the following month. The chief financial officer (CFO)...
A: The following are resons for the having high profit with insufficient cash 1) Credit sales: If credi...
Q: Question 17, P1-9 (book/static) Part 1 of 5 Interest versus dividend income Depot Logistics Inc. has...
A: Given information, pre-tax income from its operations=$560,000. Interest payment =$40,000 Income fr...
Q: Describe the components of the profit equation.
A: Profit refers to the earnings of an entity over a specific period of time.
Q: Liabilities Liquid assets Monthly credit payments Monthly savings $ 8,000 $5,000 $ 668 $ 150 Net wor...
A: Formula: Debt ratio = Liabilities / Net worth
Q: ritz Inc. had no treasury stock at the beginning of the year. During February, Fritz purchased 13,20...
A: To generate a journal entry, you input transaction data into your company's records. Your journal e...
Q: Hemingway Corporation is considering expanding its operations to boost its income, but before making...
A: Since you have posted question with multiple sub-parts , we will do the first three sub-parts for yo...
Q: Black company owned 50,000 ordinary shares which were purchased for P120 per share. During the year,...
A: The correct answer calculation is given in the following steps.
Q: What is the amount paid for VAT in Feb? (VAT payable)
A: VAT or Value Added Tax refers to the tax levied on the value addition in goods or service. When Out...
Q: Answer should be presented as: DECREASE 123456 or INCREASE 123456 During 2021, the first year of ope...
A: Market value of security 2 as on Dec. 31, 2022 1100000 Less: value at which security 2sold ...
Q: roblem 1: Perpetual Bonds ABC will be issuing a 4% P20,000,000-face value bonds. The underwriter wi...
A: Solution Cost of debt = interest *(1-tax rate )/ issue proceed Working note Issue proceed of b...
Q: he cost per unit of inventory is P5, and the carrying cost is 10% of the average value c ory. The an...
A: The cost of carrying the inventory is cost of storing the inventory and carrying the inventory. Is t...
Q: The following transactions occurred in the formation of Enercon Service Makers partnership: 1. Perez...
A: 1 Cash a/c 500000 To Pervez capital 500000 (Being cash investment made by...
Q: ACTIVITY • On March 1, 2021, A and B formed partnership with each contributing the following assets:...
A: The partnership comes into existence when two or more persons agree to do the business and further s...
Q: 8. SAN JOSE Company, non vat registered subject to 3% OPT under sec 116, had the follov data in the ...
A: Percentage tax due is the amount of tax which is calculated on gross receipts. It is type of sales t...
Q: Prepare the Stockholders' Equity Section Renee Corporation has the following stockholders' equity i...
A: Stockholders' equity is a part of financial statements. It includes common stock, preferred stock, a...
Q: Which of the following statements is true when the straight-line method is used to compute amortizat...
A: Using Straight line method , Amortization Expense = Amortization cost / Asset's estimated useful li...
Q: Riverbed Corp. uses the direct method to prepare its statement of cash flows. Riverbed trial balance...
A: The cash flow statement, also known as the statement of cash flows, helps creditors determine how mu...
Q: Oahu Kiki tracks the number of units purchased and sold throughout each accounting period but ap at ...
A: Let's understand some basics Ending Inventory is the goods which are purchased but no yet sold at th...
Q: The problem to be resolved: The following trial balance was extracted from the books of Movies To...
A: 1. Adjusting Entries - Adjusting Entries are the entries which are made at the year end. Due to adju...
Q: Sparkling Beverages makes one of its products by way of three separate stages. Details of production...
A: Process accounting means a method where raw material is added in different process and output of one...
Q: Prepare the Shareholders' Equity section of the Statement of Financial Position of New Era Corporati...
A: Shareholder's equity is the difference between the assets and liabilities of the company. In other w...
Q: Net income was $520.000 in 2020. S452.400 in 2021, and $524,784 in 2022. What is the percentage of c...
A:
Q: Kequired ImomatioIn • Selling price per unit $ 7 per unit • Accounts receivable, beginning balance 6...
A: A cash payment budget is prepared to forecast the future expected payments to be made by the company...
Q: Question 30, P1-11 (similar to) Part 1 of 4 Hemingway Corporation is considering expanding its opera...
A: Solution Corporate tax is levied on the income earned by the companies ,whether domestic or foreign....
Q: have a 5-year useful life and a $500 salvage valu December 31, Year 1 to recognize expense relate A)
A: A decrease in the value of assets with time is known as depreciation. There are different methods in...
Q: A bond issued by Ford on May 15, 1997 is scheduled to mature on May 15, 2097. If today is November 1...
A: The remaining time until the bond matures or expires is referred to as the time to maturity.
Q: 11. Sandra Bellows 65 years old purchased an annuity for $25,000. Starting at the beginning of the y...
A: An annuity seems to be a type of insurance contract that is produced and delivered by financial firm...
Q: 7
A: We know that in order to avail tha cash discount we need to settle the amount on or before that due ...
Q: ABC Company is an operator of service equipments for overseas communications / calls. During the 3rd...
A: Percentage tax due is the indirect tax which is calculated on the gross receipts or gross sales. Per...
Q: nearly $2.00 per share over the past 9 months. Loren indicated that she shared Dale's frustratio Nge...
A: Shareholders' wealth maximization should be the prime objective of the management over profit maximi...
Q: On January 1, 2021, Deer Company had a division that met the criteria for discontinuance of a busine...
A:
Q: The National Co. has a revolving line of credit of P300,000 with a one-year maturity. The terms call...
A: Annual cost of financing arrangement = Interest cost 7% on the average loan balance during the year ...
Q: Average corporate tax rates Ordinary income in 2017 was taxed subject to the rates shown in the acco...
A: Pre tax Income Level $ 19,800 $ 70,800 $ 302,000 $ ...
Q: A firm has directly placed an issue of commercial paper that has a maturity of 60 days. The issue so...
A: Formula: Maturity value = Commercial paper value + Interest amount
Q: I REALLY NEED HELP ON THIS, PLEASE DON'T REJECT Ed Company acquired the assets and assumed ...
A:
Q: On January 1, 2021, Deer Company had a division that met the criteria for discontinuance of a busine...
A: The calculation of loss on operations (discontinued) has been made as follows: Profit / (Loss) on op...
Q: Treasury bills are currently paying 4.6 percent and the inflation rate is 1.9 percent. What is the r...
A: Bonds are priced by discounting future cash flows. Future cash flows include coupons and par value o...
Q: a. How much expense will Lake Company recognize in 2020 due to the purchased patent? b. How much exp...
A: As per our protocol we provide solution to the first three sub-parts only but as you have asked mult...
Q: Smith invested P 35,000 cash to start the business 2. Purchase 350 of office supplies on account 3. ...
A: The question is based on the concept of Financial Accounting. Accounting equation is the statement t...
Q: Indicate if assessable income has been derived and when it was derived in the following situations....
A: The employee received = $1500 on 29th June. Assessable income will be derived in the period in which...
Q: 2. If XYZ Company Acid-test ratio is computed as 1.7. Which statement interprets the acid-test ratio...
A: Ratio analysis means where different ratio of various years of years companies has been compared and...
Q: he Distribution Point plans to save $2,000 a month for the next 3 years for future emergencies. The ...
A: In this question, we will calculate the future value of an annuity 1. Annuity: this is used in case...
Q: 41) After taking a look at your resulting financial statement below, how would you assess the overal...
A: The quick ratio is a liquidity ratio that determines the company's ability to pay off its current de...
Q: Down Under Products, Limited of Australia has budgeted sales of its popular boomerang for the next f...
A: Production budget is an estimate of units to be produced in a future accounting period. The preparat...
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Jeeper purchased 400 shares of the GST Company common stock at P4,890.00 per share. A few months later, he sold the shares at P3,500.00, His stockbroker charges 4.3% commission on round lots and 4.6% on odd lots. Compute a. total cost, n. the proceeds, and c. the gain or loss on the transactions.During year 4, Wall Co. purchased 2,000 shares of Hemp Corp. common stock for $31,500 as a short-term investment. The investment was appropriately classified as a trading security. The market value of this investment was $29,500 at December 31, year 4. Wall sold all of the Hemp common stock for $14 per share on January 15, year 5, incurring $1,400 in brokerage commissions and taxes. On the sale, Wall should report a realized loss of: a. $1,500 b. $2,900 c. $3,500 d. $4,900HET purchased 80% of the 10,000 outstanding shares LNET had on Jan. 1, 2019 for $300,000 cash. On that day, LNET had 10,000 preferred shares, 4% cumulative, redeemable at a price which is $1 higher than the cost, and dividends were one year in arrears. HET did not own any of those preferred shares. Both companies have Dec. 31 as the reporting day. LNET reported the followings: Common shares: $180,000 on Jan 1, 2019 $40,000 on Jan 1, 2019 Retained earnings: $80,000 on Jan 1, 2019 $70,000 for 2019 Dividends declared: $6,000 on Dec 30, 2019 Preferred shares: Net income: Assume: the entity theory is used. 7) What is the total acquisition differential on Jan. 1, 2019?
- Arcola, Inc., acquires all 40,000 shares of Tuscola Company for $725,000. A year later, when Arcola’s equity adjusted balance in its investment in Tuscola equals $800,000, Tuscola issues an additional 10,000 shares to outside investors for $25 per share. Which of the following best describes the effect of Tuscola’s stock issue on Arcola’s investment account?a. No effect because the shares were all sold to outside parties.b. The investment account is reduced because Arcola now owns a smaller percentage of Tuscola.c. The investment account is increased because Arcola’s share of Tuscola’s value has increased.d. No effect because Arcola maintains control over Tuscola despite the new stock issue.Riverbed Corporation purchased 400 shares of Sherman Inc. common stock for $12,900 (Riverbed does not have significant influence). During the year, Sherman paid a cash dividend of $3.25 per share. At year-end, Sherman stock was selling for $37.00 per share. Prepare Riverbed journal entries to record (a) the purchase of the investment, (b) the dividends received, and (c) the fair value adjustment. (Assume a zero balance in the Fair Value Adjustment account.) (List all debit entries before credit entries, Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)On May 20, Montero Co. paid $150,000 to acquire 30 shares (4%) of ORD Corp. as a long-term investment. On August 5, Montero sold one-tenth of the ORD shares for $18,000. 1. Prepare entries to record both (a) the acquisition and (b) the sale of these shares. 2. Should this stock investment be reported at fair value or at cost on the balance sheet?
- Eight years ago, SW purchased 1,750 shares of Delta stock. On May 20 of the current year, it sold these shares for $50 per share. Required: In each of the following cases, compute SW's recognized gain or loss on this sale: a. SW's cost basis in the 1,750 shares was $62 per share. It did not purchase any other Delta shares during this year. b. SW's cost basis in the 1,750 shares was $62 per share. It purchased 1,950 shares of Delta on May 1 for $52 per share. c. SW's cost basis in the 1,750 shares was $62 per share. It purchased 1,950 shares of Delta on June 8 for $52 per share. d. SW's cost basis in the 1,750 shares was $41 per share. It purchased 1,950 shares of Delta on June 8 for $52 per share. a. b. C. d. AmountSwifty Corporation purchased 400 shares of Sherman Inc. common stock for $14,100 (Swifty does not have significant influence). During the year, Sherman paid a cash dividend of $3.25 per share. At year-end, Sherman stock was selling for $35.50 per share. Assume the stock is nonmarketable. Prepare Swifty's journal entries to record (a) the purchase of the investment, (b) the dividends received, and (c) the fair value adjustment. (Assume a zero balance in the Fair Value Adjustment account.) (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) No. Account Titles and Explanation (a) (b) (c) Equity Investments Cash Cash Dividend Revenue Fair Value Adjustment Unrealized Holding Gain or Loss -Income Debit 14,100 1,300 100 Credit 14,100 1,300 100Indigo Corporation purchased 370 shares of Sherman Inc. common stock for $13,100 (Indigo does not have significant influence). During the year, Sherman paid a cash dividend of $3.00 per share. At year-end, Sherman stock was selling for $37.50 per share. Assume the stock is nonmarketable. Prepare Indigo's journal entries to record (a) the purchase of the investment, (b) the dividends received, and (c) the fair value adjustment. (Assume a zero balance in the Fair Value Adjustment account.) (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.)
- Sunland Corporation purchased 370 shares of Sherman Inc. common stock for $ 13,100 ( Sunland does not have significant influence). During the year, Sherman paid a cash dividend of $ 3.00 per share. At year-end, Sherman stock was selling for $ 37.50 per share.Prepare Sunland's journal entries to record (a) the purchase of the investment, (b) the dividends received, and (c) the fair value adjustment. (Assume a zero balance in the Fair Value Adjustment account.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) No. Account Titles and Explanation Debit Credit (a) enter an account title to record the purchase of the investment enter a debit amount enter a credit amount enter an account title to record the purchase of the investment enter a debit amount enter a credit amount (b) enter an account title to record…Ayayai Corporation purchased 420 shares of Sherman Inc. common stock for $12,300 (Ayayai does not have significant influence). During the year, Sherman paid a cash dividend of $3.50 per share. At year-end, Sherman stock was selling for $31.50 per share. Prepare Ayayai's journal entries to record (a) the purchase of the investment, (b) the dividends received, and (c) the fair value adjustment. (Assume a zero balance in the Fair Value Adjustment account.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) No. Account Titles and Explanation (a) (b) (c) Debit CreditTamarisk Corporation purchased 380 shares of Sherman Inc. common stock for $13,300 (Tamarisk does not have significant influence). During the year, Sherman paid a cash dividend of $3.25 per share. At year-end, Sherman stock was selling for $37.00 per share.Prepare Tamarisk's journal entries to record (a) the purchase of the investment, (b) the dividends received, and (c) the fair value adjustment. (Assume a zero balance in the Fair Value Adjustment account.) (