ment with its main suppli e $900,000 of raw mater h 1, 2022. By december e raw materials under thi
Q: Presto Industries is considering the acquisition of the Kasa Company in a stock-for-stock exchange.…
A: Given Information: Presto Kasa Sales (in millions) 1,500 350 Net income (in…
Q: On January 1, 2020, Bobond issued a 3-year, 9% P1,000,000 at par. Interest is payable semi-annually…
A: (Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: Tani Corporation's most recent balance sheet appears below: Comparative Balance Sheet Assets:…
A: Financial statements are written documents that summarize the commercial activities and financial…
Q: A discounted note will produce an effective rate which is different than the stated rate. Why does…
A: A Discounted Note is a short term financing product that helps a company in quickly raising cash for…
Q: RU Boxing Blazers manufactures boxing gloves. In 2003, the company had the following costs: Direct…
A: Product Costs mean the costs incurred directly or indirectly related to the production of a product.…
Q: Swifty Company is constructing a building. Construction began on February 1 and was completed on…
A: The interest cost to be capitalized is the avoidable interest or the actual interest, whichever is…
Q: A company is developing a special vehicle for Arctic exploration. The development requires an…
A:
Q: Tamara owns interest in two different entities: a partnership and an S-Corp. Her basis in the…
A: A partnership interest is the percentage of a partnership owned by a particular member or…
Q: In alphabetical order below are balance sheet items for Robinson Company at December 31, 2022.…
A: Assets = Liabilities + Owner's Equity Assets include items like equipment, accounts receivable,…
Q: During a recent IRS audit, the revenue agent decided that the Parker family used their closely held…
A: Accumulated Earning Tax A punishment tax known as the accumulated earnings tax (AET) is levied…
Q: Mirriam Company is considering replacing its old machine with a new and more efficient one. The old…
A: The old machines are not efficient and there are many maintenance expenses required for that so they…
Q: P6.6 (LO 2, 3) (Journalize Various Accounts Receivable Transactions) The balance sheet of Starsky…
A: The journal entries are prepared to keep the record of day to day transactions of the business on…
Q: Lackawanna Community College has three divisions: Liberal Arts, Sciences, and Business…
A: The departmental overhead rate is an expense rate calculated for each department in a factory…
Q: Compute the missing amounts in the contribution income statement shown below: (Round "Per Unit"…
A: Company A: Number of Units Sold = Sales / Selling Price per Unit…
Q: Question 27 of 50. Mark and Carrie are married, and they will file a joint return. They both work…
A: The correct answer is: (D) $9,000 Those whose AGI is below $125,000 can claim 50% of their…
Q: $10,000 loan like a calculation
A: Mortgage or loan calculations can get tricky at times. This is even more correct if various…
Q: Ray Company provided the following excerpts from its Production Department's flexible budget…
A: A flexible budget is one that can be adjusted depending on the degree of activity. When actual costs…
Q: he following independent situations relate to questions 1.2 and 1.3: 1.2. Novana company has a…
A: Break-even point is the point at which the sales revenue is equal to total cost and net operating…
Q: Kashi Sales, L.L.C., produces healthy, whole-grain foods such as breakfast cereals, frozen dinners,…
A: Payroll: It refers to the process of paying salary to a company's employees. It starts with…
Q: How are deferred taxes classified on the balance sheet for US companies. Explain your answer.
A: Deferred taxes are generally classified as either current or long-term liabilities on a company's…
Q: Cascade Company was trying to sell some of its old oil and gas drilling equipment. On January 1,…
A: The deferred payment system is used by the Yukon Oil and Gas Company for the purchase of equipment.…
Q: Sanchez Corporation manufactures tables for schools. The 2023 operating budget is based on sales of…
A: A flexible budget is one that responds to changes in real income levels. When an accounting period…
Q: The Gilster Company, a machine tooling firm, has several plants. One plant, located in St. Cloud,…
A: Plantwide overhead rate=(Departmental overheads+Plantwide overheads)Total direct labor hours
Q: The following transactions apply to Ozark Sales for Year 1 1. The business was started when the…
A: Horizontal Statement Model - The horizontal Statement model is a horizontal way of recording balance…
Q: Bond prices depend on the market rate of interest, stated rate of interest, and time. Read the…
A: A bond's price is what investors are willing to pay for an existing bond. In the online offering…
Q: Gold Star Rice, Limited, of Thailand exports Thai rice throughout Asia. The company grows three…
A: CONTRIBUTION MARGIN INCOME STATEMENT A contribution margin income statement is an income statement…
Q: Burkhart Corporation has the following data as of December 31, 2024: Total Current Liabilities $…
A: Ratio Analysis - The ratio is the technique used by the prospective investor or an individual or…
Q: Cotrone Beverages makes energy drinks in three flavors: Original, Strawberry, and Orange. The…
A: The cost differential between two options is known as the differential cost. Different options have…
Q: A project manager is using the internal rate of return method to make the final decision on which…
A: Project Initial Outlay Cash Flows Nominal Rate Inflation rate Internal Rate of Return…
Q: The following amortization schedule indicates the interest and principal that Chip's Cookie…
A: Solution : To record installment payment of note, cash is credited with installment amount; Interest…
Q: Neilson Company has monthly salaries of $36,000. Assume Neilson pays all the standard payroll taxes,…
A: Payroll, or simply payroll, refers to the procedure through which workers of a firm are paid for…
Q: BEI-1 Beth Corbin's regular hourly wage rate is $16, and she receives an hourly rate of $24 for work…
A: Gross earnings means the money earned by an entity including the overtime wages. Net earnings is the…
Q: Analyzing and Reporting Financial Statement Effects of Bond Transactions On January 1 of the current…
A: Formula: FV=Face value of bonds Pmt=Face value×Coupon rate×6 months12 months
Q: I need to know where the contribution margin/unit of 80 comes from for the 5330 units manufactured.…
A: Contribution margin is used to determine the profitability of the product only taking sales and…
Q: As volume increases, which of the following statements is NOT correct? O Variable cost per unit will…
A: In accounting we see that costs are of main two types – fixed costs and variable costs. Fixed costs…
Q: Organic Farmers Co-Op has three employees and pays them weekly. Using the withholding bracket table…
A: Requirement:- 1)Calculation of withholding allowances if Maria earns $716 per week and claims three…
Q: Royal Lawncare Company produces and sells two packaged products—Weedban and Greengrow. Revenue and…
A: Income statement is the one which is prepared to show the net income of the entity. In this, firstly…
Q: Current Attempt in Progress Selected data from a February payroll register for Bramble Company are…
A: The total earnings are defined as the monetary receipts collected by a person from any source of…
Q: Company A invests in a $55 million bond. It was purchased at par and is accounted for using…
A: According to IFRS-9, Credit loss on financial assets are required to be measured and recognized…
Q: Spears Company had net sales of $53,404 million. Its average total assets for the period were…
A: Average total assets :— It is calculated by dividing sum of beginning balance of assets & Ending…
Q: Joel is the sole shareholder of Mantee Corporation, a C corporation. Because Manatee’s sales have…
A: Assuming Joel purchases the warehouse and leases it to the enterprise, he can charge the company the…
Q: In a partnership liquidation, a loss from sale of non cash assets is A.Allocated to the…
A: In case of liquidation of partnership , the following steps are taken: 1. Sale of non cash assets.…
Q: ecks as of June 30 total $2,9 nk statement lists $32 in ban e bank statement, a $80 chec eceipts of…
A: Answer : Bank reconciliation : Particular Amount Particular Amount Bank statement balance…
Q: Periodic inventory by three methods The beginning inventory at Midnight Supplies and data on…
A: Inventory Valuation Methods - Inventory can be valued using various methods - FIFO Method - Under…
Q: Question 2 Danny Company has inventory of $14,000 at 30 November 2022 and is engaged in the…
A: Perpetual Inventory System – Under the Perpetual inventory system on every sales transaction cost of…
Q: Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. The…
A: Formula: Total price for the job=Total manufacturing cost+Markup percentage Selling price per…
Q: For Nissan (an automobile manufacturer), which of the following is a direct cost with respect to the…
A: Ans. Direct costs are specific costs which are directly attributable to the cost of the product…
Q: Accompanying the bank statement was a credit memorandum for a short-term note collected by the bank…
A: Bank reconciliation: Bank reconciliation is a statement which bring into agreement the cash balance…
Q: Raymond Holding Inc., a sub-holding of the Lee Group, makes an offer for all the equity shares of…
A: Mergers and Acquisitions: It is a merger when two different entities combine to form a new entity.…
Q: A company using a periodic inventory system purchases goods for resale. Which of the following is…
A: There are two types of inventory systems a) Perpetual inventory system in which movement of the…
Step by step
Solved in 2 steps
- Blossom Company signed a long-term noncancelable purchase commitment with a major supplier to purchase raw materials in 2026 at à cost of $1,077,300. At December 31, 2025, the raw materials to be purchased have a market value of $1,027,500. In 2026, Blossom paid $1,077,300 to obtain the raw materials which were worth $1,027.500. Prepare the entry to record the purchase assuming the company uses a periodic inventory system. (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.)Concord Company signed a long-term noncancelable purchase commitment with a major supplier to purchase raw materials in 2026 at a cost of $1,024,100. At December 31, 2025, the raw materials to be purchased have a market value of $978,600. In 2026, Concord paid $1,024,100 to obtain the raw materials which were worth $978,600. Prepare the entry to record the purchase assuming the company uses a periodic inventory system. (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.) Account Titles and Explanation Debit CreditZagat Inc. enters into an agreement on March 1, 2020, to sell Werner Metal Company aluminum ingots. As part of the agreement, Zagat also agrees to repurchase the ingots on May 1, 2020, at the original sales price of $200,000 plus 2%. Instructions a. Prepare Zagat's journal entry necessary on March 1, 2020. b. Prepare Zagat's journal entry for the repurchase of the ingots on May 1, 2020.
- On January 2, 2020, ABC Co. purchased a machine on credit terms 2/10, n/30. The invoice price was P40,000. Additional costs incurred in connection with the machine are as follows: Transportation-in: P1,200 Installation cost: P700 Testing costs prior to regular operation: P550 If the invoice is paid February 1, the acquisition cost of the machine must be a. P41,650 b. P41,100 c. P40,400 d. P39,200 e. answer not givenEntity A acquires equipment on Jan 1, 2021. Information on costs is as follows. Purchase price, gross of trade discount is 1000000 Trade discount available is 10000 Freight costs is 20000 Testing costs is 30000 Net disposal proceeds of samples generated during testing is 5000 Present value of estimated costs of dismantling the equipment at the end of its useful life is 6209 On Dec 31, 2023, Entity A revalues the equipment at a fair value of 820000. There is no change in the residual value and the useful life of the asset. How much is the revaluation surplus on Dec 1, 2023?On January 1, 2020, London Company purchased a large On the date of purchase, the management estimated that During January 2021, the entity realized that technological Problem 8-11 (IAA) quantity of personal computers. The cost of these computers have a residual value at that time of P600,000. The entity the computers would last approximately four years and wouH On January 1, 2020, London Company purchased quantity of was P6,000,000. On the date of purchase, the management estimated used the double declining balance method. advancements had made the computers virtually obsolet and that they would have to be replaced. The management changed the remaining useful life of the computers to two years. What amount should be recorded as depreciation for 2021? a. 3,000,000 b. 2,400,000 c. 1,500,000 d. 1,200,000
- How much should be recorded as the purchase price of theindividual PPE items: For items 18 to 22, identify the amount to be included asEquipment 18. Payment for injuries to third‐parties not covered byinsurance – P200,00019. Freight amounted to P50,000 and freight insuranceamounted to P5,000.20. Site preparation of P100,000 and installment cost ofP75,000.21. Test run cost which includes P10,000 materials, P15,000direct labor cost, P1,000 allocated supervisor’s salary andother overhead cost of P5,000. The good produced was soldfor P30,000.22. Value‐added tax amounting to P100,00023. Import tax of P30,00On 12/21/2021, DELMY Incorporated purchased equipment, land, and building for $600,000 as a lump sum purchase. Based on the information below present the journal entry to record the sale (on the seller's books) and the purchase by DELMY. NOTE: this requires two separate Journal Entries. Show calculations for best partial credit. Book Value Fair value Equipment 50,000.00 25,000.00 Land 20,000.00 60,000.00 Building 120,000.00 180,000.00 190,000.00 265,000.00 A. Prepare the Journal Entry to record the purchase of the assets by DELMY B. Prepare the Journal Entry to record the sale of the assets by the sellerOn April 2, 2020 Happy Company purchased MDSE from Enjoy Corporation with a list price of P450,000; less:10% 2/10, n/30. Terms is FOB shipping point freight prepaid. Amount of freight paid by Enjoy Corporation is P6,500. Happy Company returned to Enjoy Corporation damaged MDSE worth P10,000 at list price. On April 12, Happy Company paid in full the account with Enjoy Corporation. Prepare the correct entries to record the above transaction in the books of Happy Company. Happy uses the periodic system of recording inventory.
- 11. The following information pertains to Nonagon Company's biological assets at December 31, 2021: Price of assets in an active market , P 5,000,000 Estimated broker's and dealer's commissions, P 50,000 Transport and other costs expected to be incurred to bring the assets to the market, P 40,000 Selling price in a binding sale agreement, P 5,100,000 At what amount should the biological assets be presented on the statement of financial position?On April 2, 2020 Happy Company purchased MDSE from Enjoy Corporation with a list price of P450,000; less:10% 2/10, n/30. Terms is FOB shipping point freight prepaid. Amount of freight paid by Enjoy Corporation is P6,500. Happy Company returned to Enjoy Corporation damaged MDSE worth P10,000 at list price. On April 12, Happy Company paid in full the account with Enjoy Corporation. Prepare the correct entries to record the above transaction in the books of Happy Company. Happy uses the periodic system of recording inventory. Prepare: -two separate Journal entry for both buyer and seller company using periodic system.d. 3,200,000 On December 1, 2019, an entity entered a commitment to puroChase 200,000 barrels of aviation fuel for P55 per barrel on March 31, 20. The entity entered this purchase commitment to protect itself against the volatility in the aviation fuel market. By December S, 2019, the purchase price of aviation fuel had fallen to P50 per barrel, However, by March 31, 2020, when the entity took delivery of the 100,000 barrels the price of aviation fuel had risen to P53 per barrel. What amount should be recognized as loss on purchase commitment in 2019? ie fomso What amount should be recognized as gain on purchase commitment for 2020? 6 O s ysg n What amount should be debited to purchase on March 31, 2020? 00000a 030.000E
