During the current year an entity sold a piece of equipment used in production. The equipment had been accounted for using the revaluation method and details of the accounts and sale are presented below: Sales price P100,000 Equipment carrying amount (net) 90,000 Revaluation surplus 20,000 Which of the following is correct regarding recording the sale? Group of answer choices The gain that should be recorded in other comprehensive income is P10,000 The gain that should be recorded in profit and loss is P10,000; the P20,000 revaluation surplus may be transferred to retained earnings. The gain that should be recorded in other comprehensive income is P30,000 The gain that should be recorded in profit and loss is P30,000

During the current year an entity sold a piece of equipment used in production. The equipment had been accounted for using the revaluation method and details of the accounts and sale are presented below: Sales price P100,000 Equipment carrying amount (net) 90,000 Revaluation surplus 20,000 Which of the following is correct regarding recording the sale? Group of answer choices The gain that should be recorded in other comprehensive income is P10,000 The gain that should be recorded in profit and loss is P10,000; the P20,000 revaluation surplus may be transferred to retained earnings. The gain that should be recorded in other comprehensive income is P30,000 The gain that should be recorded in profit and loss is P30,000

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 90PSB

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During the current year an entity sold a piece of equipment used in production. The equipment had been accounted for using the revaluation method and details of the accounts and sale are presented below: Sales price P100,000 Equipment carrying amount (net) 90,000 Revaluation surplus 20,000 Which of the following is correct regarding recording the sale? O The gain that should be recorded in profit and loss is P30,000 O The gain that should be recorded in other comprehensive income is P10,000 O The gain that should be recorded in other comprehensive income is P30,000 O The gain that should be recorded in profit and loss is P10,000; the P20,000 revaluation surplus may be transferred to retained earnings.
Analyze the influence of return on sales and asset turnover on the return on assets (ROA). Use absolute differences method. Year 200A Year 200B Sales, S'000 Profit, S'000 45612 46418 12116 12813 Assets, $'000 32745 33186
I need to know how to calculate the gain on the equipment sold in part C The balance sheets of HiROE Inc. showed the following at December 31, 2020 and 2019: December 31, 2020 December 31, 2019 Equipment, less accumulated depreciation of $212,625 at December 31, 2020, and $151,875 at December 31, 2019. $ 273,375 $ 334,125 Required: If there have not been any purchases, sales, or other transactions affecting this equipment account since the equipment was first acquired, what is the amount of the depreciation expense for 2020? Assume the same facts as in part a, and assume that the estimated useful life of the equipment to HiROE Inc., is eight years and that there is no estimated salvage value. Determine: What the original cost of the equipment was. What depreciation method is apparently being used. When the equipment was acquired. Assume that this equipment account represents the cost of 5 identical machines. Prepare the horizontal model and record the journal…
amount. An entity reported the following data for the current year. What net amount in OCI that may not be recycled to profit or loss? * Net sales Cost of goods sold Selling expenses Administrative expenses P9.500,000 4,000,000 1,000,000 1,200,000 Interest expense 700,000 Gain from expropriation of land 500,000 Income tax 800,000 Income from discontinued operations Unrealized gain on equity investment at FVOCI Unrealized loss on futures contract designated as a cash flow hedge Increase in projected benefit obligation due to actuarial assumptions Foreign translation adjustment- debit Revaluation surplus 600,000 900,000 400,000 300,000 100,000 2,500,000
Analyze Home Depot The Home Depot (HD) reported the following data (in millions) in its recent financial statements: a. Determine the asset turnover ratio for Home Depot for Year 2 and Year 1. Round to two decimal places. b. What conclusions can be drawn from these ratios concerning the change in the ability of Home Depot to effectively use its assets to generate sales?
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. $224,000
16. ABC Co.'s biological asset has a fair value less costs to sell of P 100,000 and P120,000, respectively. The year-end adjusting entry will most likely include a. a credit to unrealized gain of P 20,000 to be recognized in profit or loss b. a credit to unrealized gain of P 20, 000 to be recognized in other comprehensive income c. a debit to unrealized gain of P 20,000 to be recognized in profit or loss d. none of these
Problem 1: Joan Company provided the following data for 2019: Value of biological asset at acquisition cost on January 1, 2019 600,000 Fair valuation surplus on initial recognition at fair value on January 1, 2019 700,000 Change in fair value to December 31, 2019 due to growth and price fluctuation 100,000 Decrease in fair value due to harvest 90,000 Decrease due to sale of biological asset 400,000 Required: Prepare all indicated entries for 2019 necessary to record the transactions relating to the biological asset. Determine the carrying amount of the biological asset on December 31, 2019. Problem 2: Honey Company has a herd of 10 2-year old animals on January 1, 2019. One animal aged 2.5 years was purchased on July 1, 2019 for P108, and one animal was born on July 1, 2019. No animals were sold or disposed during the year. The active market provided the following fair value less cost to sell: 2 – year old animal on January 1 100 2.5 – year old…
Estimating Useful Life and Percent Used Up The property and equipment section of the lululemon athletica 2018 balance sheet follows. Property and Equipment (in thousands) Feb. 3, 2019 Jan. 28, 2018 Land $78,636 $83,048 Buildings 38,030 39,278 Leasehold improvements 362,571 301,449 Furniture and fixtures 103,733 91,778 69,542 61,734 230,689 173,997 15,009 14,806 74,271 51,260 972,481 817,350 (405,244) $567,237 Computer hardware Computer software Equipment and vehicles Work in progress Property and equipment, gross Accumulated depreciation Property and equipment, net (343,708) $473,642 Depreciation expenses related to property and equipment was $122.4 million and $108.00 million, for the years ended February 3, 2019, and January 28, 2018, respectively.
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1. ANEMONE Company engaged your services to compute the goodwill in the purchase of another company which provided the following: Net income Net assets 2018 P 2,000,000 P 7,800,000 2019 2,500,000 8,700,000 2020 3,900,000 9,000,000 Goodwill is measured by capitalizing excess earnings at 25% with normal on average net assets at 20% How much is the goodwill?
The following is a statement of earned surplus prepared by the company for 2021: Balance, 1/1669.1 Additions: orldwisecriou Change in estimate of 2021 bo amortization expense Gain on sale of land Interest income Profit for 2021 Total N Abse Deductions: Increased depreciation due to change in estimated life played at tan Dividends declared and paid tga ol Loss on sale of equipment Loss from major casualtyd betet Balance, 12/31 P 2,800 18,350 4,500 13,680 a. P7,260 loss b. P5,060 loss C. P4,940 profit d. P2,740 profit P 85,949 P 5,000 10,000 3,860 27,730 39,330 125,279 46,590 P 78,689 The adjusted profit or loss that should be reported in the company's income statement for the year ended Dec. 31, 2021 is 2995100225 16 31010-2012