(a) Required: Prepare an extract from the Statement of Financial Position at 31st December 2021 showing the Non Current Assets section only (b) Identify the factors relevant to choosing an appropriate method for depreciation (c) Explain why it is important to distinguish between Capital and Revenue Expenditure
Q: A corporation purchases 9,515 shares of its own $10 par common stock for $18 per share, recording it…
A: When a corporation purchases its own shares, those reacquired shares are called Treasury shares.…
Q: 1. Development of accounting rules.
A: Accounting rules are statements that guide and explain how to record accounting transactions. As per…
Q: ou have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door…
A: Cost Formula Actual Cost in March Utilities $16,800 + $0.16 per machine-hour $ 21,800…
Q: Baskin Promotions, Incorporated sells T-shirts decorated for a variety of concert performers. The…
A: Since cost of goods sold varies directly with the number of units sold , we can calculate per unit…
Q: The following are comparative balance sheets for Vaughn Company. Assets Cash Accounts receivable…
A: Introduction: A cash flow statement is one of the financial statements issued by a company that…
Q: TufStuff, Incorporated, sells a wide range of drums, bins, boxes, and other containers that are used…
A: In order to determine the contribution margin per unit, the variable cost per unit are required to…
Q: Amy rented her apartment to Ben for $5,000 per month in January 2015. However, they both agreed to…
A: Ben pays a rent of 5,000 but entered into the agreement of $10,000 rent to claim deduction.
Q: Bright Star Incorporated is a job-order manufacturer. The company uses predetermined overhead rate…
A: Introduction: Cost refers to the money spent to create and sell goods or services, or to acquire…
Q: On January 1, Mitzu Company pays a lump-sum amount of $2,600,000 for land, Building 1, Building 2,…
A: The journal entries are prepared to record the transactions on regular basis. The journal keeps the…
Q: On October 1, 2022, the Intra Main Office established a sales agency in Cebu. -The main office sent…
A: Here discuss about the details of the calculation of the net income of the agency which are incurred…
Q: Food Harvesting Corporation is considering purchasing a machine for $1,718,750. The machine is…
A: Introduction: The payback period is the number of years needed to repay the initial financial…
Q: In July what are the total estimated cash disbursements for raw materials purchases? Assume the cost…
A: Cash Disbursement of Raw materials purchase :— It is the cash payment for the purchase of raw…
Q: Required information [The following information applies to the questions displayed below.] Manuel…
A: Standard overhead rate is = Budgeted overhead at expected level of capacity/ hours at budgeted level…
Q: Bulls Corporation was incorporated on January 2, 2018. The following information pertains to Bulls’…
A: No of Outstanding shares of Bull's Corporation on December 31, 2018 is 120,000 Explanation :…
Q: Fill in the missing values: **If a cell has a value of 0, type the 0. A blank cell will be marked…
A: Cash Budget is prepared by the Business entity to anticipate the cash requirement for the operations…
Q: 6 7 S (a) BL Kingbird Corporation uses standard costs with its job order cost accounting system. In…
A: The process of recording business transactions in the books of accounts for the first time is…
Q: On January 1, 2021, Thomson Inc. had the following account balances in its shareholders' equity…
A: Introduction: A journal entry is a record of a business arrangement in the accounting system of a…
Q: Parker Corp., which operates on a calendar year, expects to sell 5140 units in January and expects…
A: Budgeted revenues for a month are computed from the unit sales and the sales price prevailing for…
Q: Mark the correct statements [ ]Lead time is the interval between when an order is placed and when…
A: Inventory Management: Businesses may decide which goods to order when and in what amounts by using…
Q: Use the following information for exercise: Cinturon Corporation produces high-quality leather…
A: Material cost is the total cost of material produced or purchased. Labor cost is the total cost of…
Q: Determine the costs assigned to ending inventory when costs are assigned based on the LIFO method.
A: Organizations follow different types of inventory accounting based on the industry and the products…
Q: Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the…
A: Under the units-of-production method or activity method the yearly depreciation is calculated based…
Q: Stephanie Corporation sells a single product. Budgeted sales for the year are anticipated to be…
A: Number of units to be produced is based on the budgeted sales units, taking into consideration…
Q: Lemon, Lime, and Orange, three cash method, calendar year individuals, form Starburst General…
A:
Q: The pro-rata payment to stockholders on the peso is
A: Pro-rata payment to stockholders = Estimated amount to be recovered by stockholders ÷ Stock…
Q: Dimsdale Sports, a merchandising company, reports the following balance sheet at December 31.…
A: Budgeting is a estimated paln for a future period. Sales expenses plan is s spending budget,…
Q: Sport Box sells a wide variety of sporting equipment. The following is information on the purchases…
A: Answer :FIFO (First in first out) = In this method it is assumes that the oldest products have been…
Q: The directors of Brisbane Ltd are considering an investment in new machine. The details of the…
A: Net Present Value :— It is the sum of all present value of future cash flows.
Q: Instructions: 1. How should each of these investments be accounted for? Why? 2. For each investment,…
A: IAS 28 (International Accounting Standards) Specifies about "Investments in associates and Joint…
Q: A. Muharraq Industrial Co. purchased a Tradename for $ 240,000 on July 1, 2021. The Trademname is…
A: "Since you have asked multiple questions, we will solve first question for you. If you want any…
Q: What is reformatting in Restating Foreign Financial Statements to U.S. GAAP? Discuss it.
A: Introduction: The Generally Accepted Accounting Principles (GAAP or US GAAP) are a set of widely…
Q: Ross Corporation makes all sales on account. The June 30th balance sheet balance in its accounts…
A: The account receivables is the amount to be received from the customers during the period. The…
Q: Prepare the property, plant and equipment note to be attached to the financial statements for Fred’s…
A: Answer: The data regarding property, plant, and equipment was taken from Sandile's supermarket's…
Q: Magic Realm, Incorporated, has developed a new fantasy board game. The company sold 38,800 games…
A: Contribution: The number of profits that are left over after all direct expenditures have been…
Q: Kate's Kale Chips produces a healthy snack made primarily of kale. Each bag of the product sells for…
A: Product cost is the cost which is incurred on the manufacture of the goods. It includes the cost of…
Q: Yoshi Company completed the following transactions and events involving its delivery trucks. Year…
A: Depreciation is the non-cash expense which is reported in the books to record the regular usage of…
Q: On July 27, 2011, Panda, Inc. sold goods to Small Company for P1,850,000 in exchange for a 4-year…
A: The notes receivables means a document in which the borrower issues a note to the lender that he…
Q: On January 1, 2020, Hummer Company purchased 7% bonds, having a maturity value of $500,000, for…
A: 7% bond purchased, maturity value - $500,000, price - $570,000 Yield on the bond- 5% Purchased on –…
Q: Schedule Z-Head of Household If taxable income is over: But not over: $ 0 $ 14,650 $ 14,650 $ 55,900…
A: In question it is not specified that in which capacity reba is filling the return. The expert use…
Q: Date The Horstmeyer Corporation commenced operations early in 2021. A number of expenditures were…
A: Journal Entry :- A journal entry is the act of recording any transaction, whether one that is…
Q: How to calculate the gross profit for merchandise business? A. Total Sales minus all the operating…
A: The Gross profit is the excess of revenue over the cost of goods sold. It is the amount available…
Q: Say the Fed wants to increase the money supply in the country. Which of the following open market…
A: The Fed can influence the money supply by modifying reserves requirement which generally refers to…
Q: Highland Company produces a lightweight backpack that is popular with college students. Standard…
A: Introduction: Variable overhead refers to production variable costs that vary in response to output…
Q: . Calculate the depreciation deduction and the unrecovered investment during each year of the
A: Depreciation is the expenses charged to profit and loss statement over the life of asset. it…
Q: Ellen, made a cash contribution to a local homeless shelter (a 501(c)(3) charity) in 2022. If Ellen…
A: The annual gross income means the total of the all the incomes that is earned by the taxpayer. The…
Q: Required information Use the following information for the Exercises below. (Algo) Skip to…
A: Depreciation Expense - Depreciation is charged on the assets for the purpose of use, wear and tear,…
Q: Onslow Company purchased a used machine for $240,000 cash on January 2. On January 3, Onslow paid…
A: Fixed asset is required to record at acquisition cost. Acquisition cost of asset include all…
Q: Consider a bank with 10M in shareholder equity. It has assets and liabilities according to the…
A: Shareholder's equity refers to the amount of equity which the company owners have invested into the…
Q: As of January 1 of the current year, Phyllis Company had accounts receivable of $50,000. The sales…
A: A cash budget is an estimation of income and expenditures on the basis of past performance or…
Q: Computer equipment was acquired at the beginning of the year at a cost of $54,427 that has an…
A: Depreciation is charged on the depreciable fixed assets based on their useful life. Salvage value is…
Step by step
Solved in 2 steps
- Based on the depositors rate of return as the following tableDeposit TypesRate of return6 months & less6%9 months & less3%12 months & less5%More than 12 months4%determine the profit attributable to the ( A ) depositor who invested OR 44500 from 1st. January 2018 to 15 August 2019An extract of the Asset Register of Ace Pty Ltd (“Ace”) for the 2018 - 2019 Income year isshown as follows:Asset Cost OpeningAdjustableValueMethod EffectiveLifeDecline inValue forThis PeriodClosingAdjustableValuePrinter 1,200 1,200 DiminishingValue3 years 400 800Desks 3,000 2,400 Prime Cost 10 years 300 2,100Appliances 2,600 1,040 Prime Cost 5 years 520 520All depreciable assets are 100% for business use and Ace uses a low-value pool for all eligibleassets. The closing value of the low-value pool at 30 June 2019 was $8,000. Ace purchased a camera on 20 Jan 2020 for $840.Advise Ace of the Income Tax consequences arising out of the above information for the 2019 - 2020 Income year assuming Ace is not a small business entity.Company B's December 31 Year-End Balance Sheet reveals the following: • December 31, 2020 net PPE of $865 • December 31, 2020 Accumulated Depreciation of $250 • December 31, 2021 net PPE of $770 • December 31, 2021 Accumulated Depreciation of $230 • Annual 2021 Depreciation Expense was $100 • During 2021, PPE was purchased for $560; all PPE purchases are made in cash. • During 2021, the gain of the sale of PPE was $20 What is the journal entry Company B recorded to recognize 2021 depreciation expense? Dr. Accumulated Depreciation $20 Cr. Depreciation Expense $20 Dr. Depreciation Expense $100 Cr. Accumulated Depreciation $100 Dr. Depreciation Expense $20 Cr. Accumulated Depreciation $20 Dr. Depreciation Expense $100 Cr. PPE $100
- Property 1This property was purchased at a cost of R4 500 000 on 1 January 2019. An upfront payment ofR450 000 was made on this date and the remaining R4 050 000 is payable on 31 December 2019.A discount rate of 10% is applicable. The present value factor for R1 at 10% per annum is 0.909.5% of the property is used by the company as its sales and administration office. This isconsidered to be an insignificant portion of the property. The remaining 95% is leased to thirdparties under operating leases. The property cannot be apportioned off and sold separately.Transfer duties of R328 000 plus other abnormal costs of labour amounting to R50 000 wereincurred in getting the property ready to be let out to third parties.During the year, rentals of R775 000 were earned and repairs and maintenance expenses ofR65 000 were paid.The fair value of the property at year end on 31 December 2019 was R5 400 000. Q.2.2 If the company chooses to use the fair value model for measurement after recognition…Question 1Ahmed Al Balushi SAOG is planning to acquire Abdullah SAOG at a Purchase consideration of OMR 350,000. Below is the Extract of the Statement of Financial Position as at 31st December 2019; Non – Current Assets OMR Intangible Non - Current Asset Patent 21,000 Tangible Non- Current Asset Property, plant, and Equipment 215,500 Current Assets Inventories 89,750 Trade Receivable 42,750 Cash 22,500 Current Liabilities Trade Payable 53,750 Bank over draft 12,000 Non – Current Liabilities 8% bank loan 85,000 Based on the above information,A. You are required to calculate the value of goodwill for Abdullah SAOG as at 31st Dec 2019? In the year 2020, Ahmed Al Balushi has identified the implied goodwill is OMR 85,000.B. Calculate the value of good will to be impaired? C. Discuss the 2 types of Intangible assets with suitable examples?Property 1This property was purchased at a cost of R4 500 000 on 1 January 2019. An upfront payment ofR450 000 was made on this date and the remaining R4 050 000 is payable on 31 December 2019.A discount rate of 10% is applicable. The present value factor for R1 at 10% per annum is 0.909.5% of the property is used by the company as its sales and administration office. This isconsidered to be an insignificant portion of the property. The remaining 95% is leased to thirdparties under operating leases. The property cannot be apportioned off and sold separately.Transfer duties of R328 000 plus other abnormal costs of labour amounting to R50 000 wereincurred in getting the property ready to be let out to third parties.During the year, rentals of R775 000 were earned and repairs and maintenance expenses ofR65 000 were paid.The fair value of the property at year end on 31 December 2019 was R5 400 000. Q.2.1 Determine the cost at initial recognition for Property 1. Q.2.2 If the company chooses…
- PART TWO OF THE QUESTION: USING JOYFUL'S 2018 SALES REVENUE OF $4,530 (MILLION) AND ITS AVERGAE NET FIXED ASSESTS OF $266 (MILLION), CALCULATE THE FIXED ASSET TURN OVER RATIO FOR 2018. (ROUND TO THE NEAREST 2 DECIMAL PLACE).Jaez Corporation is in the process of going through a reorganization. As of December 31, 2020, the company's accountant has determined the following information although the company is still several months away from emerging from the bankruptcy proceeding. ts Book Value Fair Value Assets Cash $ 23,000 45,000 140,000 220,000 154,000 $ 23,000 47,000 210,000 260,000 157,000 eBook Inventory Land Buildings Equipment Print ferences Allowed Claims Expected Sett lement Liabilities as of the date of the order for relief Accounts payable Accrued expenses Income taxes payable Note payable (due 2023, secured by land) Note payable (due 2025) Liabilities since the date of the order for relief Accounts payable Note payable (due 2022) Stockholders' equity Common stock Deficit $ 123,000 $ 20,000 30,000 22,000 100,000 170,000 4,000 18,000 100,e00 80,000 $ 60,000 110,000 200,000 (233,000) Prepare the balance sheet for Jaez Corporation. (Neative amounts should be indicated bv a minus sian.) nc Graw lill…QUESTION 1 The transactions related to liabilities by SNM Bhd (SNM) for the year 2020 are as follows: 3 July SNM purchased machine for RM75,000 from Gagah Sdn Bhd and the term was 2/15, n/45. Net method was used to record the purchase. 17 July Made payment to Gagah Sdn Bhd for the purchase of 3 July. 1 Aug SNM borowed RM170,000, by signing a one-year, 5% interest-bearing RM170,000 note with Bank Muhibbah. 1 Sept SNM purchased safety equipment from Guardian Enterprise with the price of RM25,000. As for the payment, RM5,000 was in cash at the date of acquisition and the balance by signing a one-year, 10% note. 7 Sept A cash dividend of RM325,000 was declared and will be paid to the shareholders on 5 November 2020. 9 Sept SNM announced to its employees, bonuses of two-month salary for the financial year end 30 September 2020. The total amount of the bonuses is RM254,000 and will be paid on 3 October 2020. Additional information: 1. The financial year end for SNM Bhd is on 30 September. 2.…
- Analyzing Fixed Assets Pitt reported the following information for 2018 and 2019: Required: Compute Pitts fixed asset turnover ratio and the average age of its fixed assets. ( Note: Round all answers to two decimal places.)Asset Efficiency Ratios Rumsford Inc.s financial statements for 2019 indicate the following account balances: Required: 1. Using this information, calculate Rumsfords receivable turnover ratio. (Note: Round to two decimal places.) 2. Using this information, calculate Rumsfords asset turnover ratio and also convert the ratio into days.Year Net Income Cumulative (Loss) Net Income 2018 6,500,000 6,500,000 2019 400,000 What is the cumulative income? Select one: a. OMR 6,500,000 b. None of the other points c. OMR 6,900,000 d. OMR 6,100,000