1. E. Adentwi Enterprises Ltd bought a machine for GH₵ 150,000 on 1st January 2019. It depreciates the machine on cost over four years assuming a nil residual value. The company received a grant of GH₵30,000 from the municipal assembly to support the acquisition of the machines. required : Account for this grant under the netting off method.
Q: The following information relates to the intangible assets of Lettuce Express: On January 1, 2021,…
A: The intangible assets are the assets that can not be seen or physically touched.
Q: At the beginning of current year, Exodus Company purchased a machine for 8,000,000 and received a…
A: Grants means the amount received without any sale of product or providing any services. When grants…
Q: conditions. What is the depreciation for 2019? What is the depreciation for 2021? What is the…
A: The question is related to Government Garant. Required What is the depreciation for 2019? What is…
Q: Record amortization expense for the intangible assets at December 31, 2021
A: Transaction General Journal Debit Credit a. "No Journal Entry Required"…
Q: On January 1, 2022, Annie Company purchased a mineral mine for P26,400,000 with removable ore…
A: Lets understand the basics. As per IFRS 6 "Exploration for and evaluation of mineral resources",…
Q: Racquel Company purchased a machine for P3,000,000 on January 1, 2020. The entity received a…
A:
Q: What should be the carrying amount of the machine as of December 31, 2021? QUESTION 2: What is the…
A: The determination of the carrying amount of machine as of December 31,2021,the deferred income…
Q: Natalie Company purchased a machine for P 6, 600, 000 on January 1, 2014 and received a government…
A: Formula: Straight line depreciation = ( Cost of Asset - Salvage value ) / Useful life years.
Q: Rigg Owusu Enterprises Ltd bought a machine for GH₵ 150,000 on 1st January 2019. It depreciates the…
A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…
Q: On January 1, 2019, GUTZY Corporation purchased a tract of land (site number 101) with a dilapidated…
A: Fixed assets Fixed assets are also known as long-term assets and non-current assets. These are those…
Q: London Company owns a building on January 1, 2020, with a historical cost of P40,000,000. The…
A: The amount of Revaluation will be credited to revaluation reserve and become a part of other…
Q: On December 31, 2021, the company exchanged old motor vehicles and RM48,000 for new motor vehicles.…
A: Since you have posted a question with multiple sub-parts, we will be solving the first three for…
Q: Wah Co. has an investment property acquired four yéárš ago at a total cost of P1,000,000. The…
A: Working Note; Accumulated depreciation for 4 years = Cost x 4 years / 10 years…
Q: Garrett Corporation paid $200,000 to acquire land, buildings, and equipment. At the time of…
A: Impairment loss is occurred when the fair value of asset is less than the carrying value of an…
Q: At the beginning of current year, Peach Company purchased a machine for P7,000,000 and received a…
A: Journal entries are the set of economic events that can be measurable in monetary terms. They need…
Q: On January 1, 2021, Entity A received land with fair of PHP 200,000 from the government conditioned…
A: Land value Net presentation=Total cost-Fair value=PHP 1,000,000-200,000=PHP 800,000
Q: Sarasota Company, organized in 2020, has the following transactions related to intangible assets.…
A: Journal entries are recording of the transaction in the accounting journal in a chronological order.…
Q: Keshia Company purchased a machine for P3,000,000 on January 1, 2022. The entity received a…
A: the recognition of government Grant is done only when there is a reasonable assurance that entity…
Q: The following information concerns the intangible assets of Epstein Corporation: a. On June 30,…
A: An intangible asset seems to be one that does not have a physical form. Intangible assets include…
Q: Ôn January 1, 2020, Pharoah Company purchased a varnishing machine for P6,000,000. The entity…
A: Grants means the amount received without any sale of product or providing any services. Government…
Q: On January 2, 2020, KENNYInc. made a test of impairment on one of the buildings carried as plant…
A: After transfer ,rule of new IAS applies.
Q: On January 1, 2021, Annie Company purchased a mineral mine for P26,400,000 with removable ore…
A: Depletion is the allocation of cost of natural resources that, needs to be allocated over the life…
Q: The following information relates to the intangible assets of University Testing Services (UTS):a.…
A:
Q: On January 1, 2021
A:
Q: On June 1, 2022, Levine Company purchased three machines for $540, 000. The following information is…
A: Calculation of book value of the machine C as on December 31,2028::: Depreciation Expense=(Cost of…
Q: At the beginning of current year, Darwin Company purchased a plating machine for 5,400,000. The…
A: Depreciation means decline in the estimation of benefit inside its valuable life because of mileage…
Q: The following information relates to the intangible assets of Lettuce Express: On January 1, 2021,…
A: Intangible assets are those assets which can not be seen or touched, but these can only be felt or…
Q: The following expenditures were incurred by an entity during 2021. A piece of land with a…
A: The answer is stated below:
Q: Alabama Corp. acquired an investment property on January 2, 2022, at a total cost of P8 million. The…
A: Given that, Cost of investment property = P8,000,000 Useful life of investment property = 25 years…
Q: Garrett Corporation paid $200,000 to acquire land, buildings, and equipment. At the time of…
A: Given, Amount paid for acquiring and = $200,000 Amount paid for an appraisal = $20,000 Land cost =…
Q: ABC Company acquired a rice milling machine to be used by farmers for P 900,000 on January 1, 2020.…
A: Grants means the amount received without any sale of product or providing any services. When…
Q: The following information relates to the intangible assets of Lettuce Express: a. On January 1,…
A:
Q: Quell Company purchased a varnishing machine for P3,000,000 on January 1, 2020. The entity received…
A: Explanation: Treatment of government grant If the government grants are given for the purchase of…
Q: Carter Company has provided information on intangible assets as follows. A patent was purchased from…
A:
Q: On January 1, 2019, GUTZY Corporation purchased a tract of land (site number 101) with a dilapidated…
A: When an asset is purchased, then all the direct costs related to the purchase and placement of that…
Q: Karen Company purchased a varnishing machine for P3,000,000 on January 1, 2019. The entity received…
A: As per the IAS 20, government grant related to assets requires setting up grant as deferred income…
Q: Garrett Corporation paid $200,000 to acquire land, buildings, and equipment. At the time of…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: What are the costs of Land and Building, respectively? Apply the principles prior to the amendments…
A: PAS 16 mentions the recognition of the assets while including and deducting many items.
Q: DEE Inc. purchased an equipment on March 31, 2019. The selling price of the asset is equal to its…
A:
Q: The following information relates to the intangible assets of Lettuce Express:a. On January 1, 2021,…
A:
Q: Garrett Corporation paid $300,000 to acquire land, buildings, and equipment. At the time of…
A: 1. Formulas:
Q: On January 1, 2020, Hilary Company purchased a mineral mine for P26,400,000 with removable ore…
A: Depreciation , amortization , depletion all means the fall in value of assets due to one reason or…
Q: Scott Industries had the following transactions during 2022: 1. Acquired an office building on three…
A: The journal entries are prepared to keep the record of day to day transactions of the business.
Q: On July 1, 2021, Company A purchased land and buildings and agreed to rent the facility to a…
A: In accordance with IAS 40, the Investment property shall be measured using Cost Model Fair Value…
Q: In 2018, Lepanto Mining Company purchased property with natural resources for P28,000,000. The…
A: Journal entry: A journal entry is used to record day-to-day transactions of the business by debiting…
Q: Required: 1. What cost should the company assign to the land, buildings, and equipment,…
A:
1. E. Adentwi Enterprises Ltd bought a machine for GH₵ 150,000 on 1st January 2019. It
The company received a grant of GH₵30,000 from the municipal assembly to support the acquisition of the machines.
required :
Account for this grant under the netting off method.
2. Polycarp Ltd adopts revaluation model for subsequent measurement of its intangible assets in accordance with IAS 38: Intangible assets. The policy of Polycarp is to revalue its intangible asset at the end of each year. An intangible asset with an estimated useful life of 9 years was acquired on 1 January 2018 for GH¢45,000. It was revalued to GH¢54,400 on 31 December 2018 and the revaluation surplus was correctly recognized on that date. As at 31 December 2019, the asset was revalued at GH¢32,000.
Required:
Discuss the accounting treatment required in 2018 and 2019 financial statements.
Step by step
Solved in 2 steps with 1 images
- d. Yompab Ltd is a listed manufacturing company which prepares its financial statements for the year ended 31 October, 2018 in accordance with IFRS. The financial statements aredue to be authorized for issue on 15 January 2019.i. Yompab Ltd holds an investment in the shares of a listed company, Nanoni Ltd. During November 2018 there was a material fall in the value of Nanoni Ltd’s shares. Analystsattribute the fall in value principally to a fraud dating back to December 2017 that was discovered by Nanoni Ltd's management and announced publicly in November 2018.ii. In December 2018, the directors of Yompab Ltd publicly announced a plan to reducethe workforce by 10% as a result of worsening economic conditions.Required:Discuss the effects of each of the above items on the financial statements of Ypmpab Ltd for theyear ended 31 October 2018 in accordance with IAS 10 Events after the Reporting Period.e. After a wedding in 2018, ten people died, possibly as a result of food poisoning…Da-Rocha Ltd is a listed manufacturing company which prepares its financial statements for the year ended 31 October, 2018 in accordance with IFRS. The financial statements are due to be authorized for issue on 15 January 2019. i.Da-Rocha Ltd holds an investment in the shares of a listed company, Shelga Ltd. During November 2018 there was a material fall in the value of Shelga Ltd’s shares. Analysts attribute the fall in value principally to a fraud dating back to December 2017 that was discovered by Shelga Ltd's management and announced publicly in November 2018. ii.In December 2018, the directors of Da-Rocha Ltd publicly announced a plan to reduce the workforce by 10% as a result of worsening economic conditions. Required: Discuss the effects of each of the above items on the financial statements of Da-Rocha Ltd for the year ended 31 October 2018 in accordance with IAS 10 Events after the Reporting PeriodA. Da-Rocha Ltd is a listed manufacturing company which prepares its financial statements for the year ended 31 October, 2018 in accordance with IFRS. The financial statements are due to be authorized for issue on 15 January 2019. i.Da-Rocha Ltd holds an investment in the shares of a listed company, Shelga Ltd. During November 2018 there was a material fall in the value of Shelga Ltd’s shares. Analysts attribute the fall in value principally to a fraud dating back to December 2017 that was discovered by Shelga Ltd's management and announced publicly in November 2018. ii.In December 2018, the directors of Da-Rocha Ltd publicly announced a plan to reduce the workforce by 10% as a result of worsening economic conditions. Required: Discuss the effects of each of the above items on the financial statements of Da-Rocha Ltd for the year ended 31 October 2018 in accordance with IAS 10 Events after the Reporting Period B. Mambo Ltd has the following products in inventory at the end of 2019:…
- d) Yompab Ltd is a manufacturing company that prepares its financial statements for the year ended 31st October 2018 in accordance with IFRS. The financial statements are due to be authorized for issue on 15th January 2019. Yompab Ltd holds an investment in shares of a listed company, Nanoni Ltd. During November 2018 there was a material fall in the value of Nanoni Ltd.’s shares. Analysts attribute the fall in value principally to a fraud dating back to 2017 that was discovered by management and announced publicly in November 2018. In December 2018, the directors of Yompab Ltd publicly announced a plan to reduce the workforce by 10% as a result of worsening economic conditions. Required; Discuss the effect of each of the above items on the financial statements of Yompab Ltd for the year ended 31st October 2018 in accordance with IAS 10: Events after Reporting Period. e) After a wedding in 2018, ten people died, possibly as a result of food poisoning from products sold by Lambon…On 1 July 2021, Mel Ltd took control of the assets and liabilities of Syd Ltd. At this date the statement of financial position of Syd Ltd was as follows: Required Prepare the journal entries in the records of Mel Ltd at 1 July 2021 in each of the following situations, assuming the costs of issuing the shares by Mel Ltd cost $1600. Mel Ltd issued 80 000 shares having a fair value of $2.40 per share in exchange for the net assets of Syd Ltd Mel Ltd issued 80 000 shares having a fair value of $2.00 per share in exchange for the net assets of Syd Ltd. Mel Ltd acquired the shares of Syd Ltd. The agreement was that Mel Ltd would pay the shareholders of Syd Ltd one share in Mel Ltd for every two shares held in Syd Ltd plus $1 in cash for each share held in Syd Ltd. Shares in Mel Ltd have a fair value of $1.80 per share.Entity A invested in 38,600 shares of a listed company on 1 October 2019 at a cost of $3.95 per share. On 31 December 2019, the shares have a market value of $3.45. Entity A is not planning on selling these shares in the short term and elects to hold them as Fair Value through Other Comprehensive Income. REQUIRED: (1) Measure the amounts of the financial asset recognised in the Statement of Financial Position as at 31 December 2019. (2) Measure the amounts recognised in the Statement of Profit or Loss for the financial asset of the year 2019. (3) Measure the amounts of the Fair Value Reserve recognised in the Statement of Financial Position as at 31 December 2019
- A company invests in stock of other companies for trading purposes. Its accounting year ends December 31. Its investment activity during 2019, 2020, and 2021 is as follows: a. Purchased stock of Acme Company in 2019 for $250,000 for the purpose of taking advantage of short-term volatility in the market place. ). Sold the investment shortly after purchase for $235,000. :. Purchased stock of Beeber Company in 2019 for $300,000. 1. The investment had a fair value of $275,000 at the end of 2019. e. It was sold for $310,000 in late 2020. f. Purchased stock of Cromwell Company in 2019 for $500,000. J. Its fair value and the end of 2019 was $520,000. 1. Its fair value and the end of 2020 $460,000. i. The investment was sold for $480,000 in 2021. Prepare the entries necessary to report the above entries in either a T-account or spreadsheet format.On January 1, 2018 Alexes Company purchased market marketable equity securities to be held as trading for 5,000,000. The entity also paid transaction cost amounting to P 200 000. The securities had a market value of 5 500 000 on December 31, 2018 and the transaction cost that would be incurred on sale is estimated at 100 000. No securities were sold in 2018. What amount of unrealized gain or loss on these securities should be reported in the 2018 income statement?Sky Ltd (Sky) has purchased an investment of 15,000 shares on 1 August 2019 at a cost of $6.5 each. Transaction costs on the purchase amounted to $1,500. As at the year ended 30 September 2019, these shares are now worth $7.75 each. Sky makes an irrevocable election at initial recognition to measure these shares at fair value through other comprehensive income to reduce accounting mismatch. Required: What is the effect on the statement of profit or loss and other comprehensive income of these shares for the year ended 30 September 2019 of Sky in accordance with HKFRS 9 ‘Financial Instruments’? A. $17,250 gain in other comprehensive income B. $18,750 gain in other comprehensive income and $1,500 expense C. $17,250 gain in profit or loss and $1,500 expense D. $18,750 loss in other comprehensive income and $1,500 expense
- On January 1, 2019, Pat Archi Inc purchased marketable equity securities for P2,000,000. The securities do not qualify as financial asset held for trading. The entity elected to present changes in fair value in other comprehensive income. On December 31, 2019, the securities have a market value of P2,500,000. The journal entry at year-end should include a credit to: a.Unrealized loss - OCI, P500,000 b.Unrealized gain - OCI, P500,000 c.Financial asset - FVOCI, P2,500,000 d.Financial asset - FVOCI, P500,000For the year ended December 31, 2019, WQA Company reported opening retained earnings of P1,850,000 and cumulative unrealized gains recorded as reserves of P25,000. These gains are from an investment with an original cost of P100,000 and a fair value of P125,000. The company policy is to value all investments at fair value with unrealized gains and losses included in reserves. The company's accounting policy is that when an investment is sold, the reserve amount is transferred to retained earnings. During 2020, one-half of the investment was sold. The remaining investment increased in value to P70,000. A second investment was bought for P150,000 and its fair value had increased to P165,000 by the end of 2020. What is the reserve balance at December 31, 2020?For the year ended December 31, 2019, WQA company reported opening retained earnings of P1,850,000 and cumulative unrealized gains recorded as reserves of P25,000. These gains are from an investment with an original cost of P100,000 and a fair value of P125000. The company policy isto value all investments at fair value with unrealized gains and losses included in reserves. Thecompany's accounting policy is that when an investment is sold, the reserve amount is transferred toretained earnings. During 2020, one half of the investment was sold. The remaining investmen increased in value to P70,000. A second investment was bought for P150000 and its fair value had to P165000 by the end of 2020. What is the reserve balance at December 31. 20202