On January 1, 2021, Gee Company sold a machine with a cost of P500,000 and accumulated depreciation of P350,000 to Faye Company. In lieu of cash payment, Faye Company gave a 4-year, P100,000, 10% note. The note requires interest to be paid annually on December 31. The prevailing rate of interest for a note of this type is 16%. Required: Compute the following: (Round off PV factors to 4 decimal places before multiplying.) 1. Gain or loss on sale of machinery (place parenthesis if loss)
Q: How much are Sales if Cost of Sales is $46,500, Cost of Labor is $33,247, the fixed costs are…
A: Contribution margin = Fixed cost + profit = $65883 + $2129 =$68012
Q: Plasma Storage Devices buys $10,000 of equity securities, which it classifies as available-for-sale.…
A: Available for Sale (AFS) securities are those securities equity or debt securities that are…
Q: Harmeling Paint Ball (HPB) Corporation needs a new air compressor that costs $80,000. HPB will need…
A: Note: Hi! Thank you for the question, As per the honor code, we are allowed to answer three…
Q: Use the following information to answer next five (5) questions: The AACA Company is on a calendar…
A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…
Q: Liberty Celebrations, Inc. manufactures a line of flags. The annual demand for its flag display is…
A: Safety of stock is maintained so that the company does not face scarcity of resources. There is no…
Q: Which of the following would not count as part of US GDP in 2019 A. Paul paid rent of…
A: The GDP stands for the Gross Domestic Product. The Us GDP means the value of the goods and the…
Q: EZ-Tax is a tax accounting practice with partners and staff members. Each billable hour of partner…
A: Sales quantity variance : It is the difference between standard quantity to be sold and actual…
Q: Solving hor Stockhalders toquity Amaunts Assume that the foitowing amounts are known for Colten…
A: The dividend is declared and paid to the shareholders from the retained earnings of the business.
Q: In the statement of cash flows, it is necessary to break down the change in shareholders' equity…
A: Cash flow statement is the statement showing cash inflows and outflows of a particular entity. It is…
Q: Problem 16-2 (ACP) Zeus Company reported pretax financial income of P8,000,000 for the year ended…
A: Given information, Financial income =P8,000,000 Taxable income =P9,000,000 Tax rate =25% Estimated…
Q: d. What is the Year-1 imputed interest expense? Do not round intermediate calculations. Round your…
A: As Given that (HPB) Company need a $80,000 compressed air. Although the compressor's economic…
Q: Accounting TRex Inc. uses standard costing. The Materials inventory account has a balance of 1,000…
A: Direct material quantity variance is one of the efficiency variance, which shows actual cost of…
Q: Production engineers of a manufacturing firm have proposed a new equipment to increase productivity…
A: Payback Period: The amount of time that must pass before you can consider your investment to have…
Q: Use the information provided below to prepare the Cash Flow Statement of Rolex Limited for the year…
A: It is important in the business entity to prepare the Cash flow statement which can be determine the…
Q: Plasma Storage Devices buys $10,000 of equity securities, which it classifies as available-for-sale.…
A: Available for Sale (AFS) securities are those securities equity or debt securities that are…
Q: Simon Company’s year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago…
A: Days' sales in inventory confirms how many days' sales are in ending inventory. Higher the number of…
Q: Imperial Jewelers manufactures and sells a gold bracelet for $407.00. The company’s accounting…
A: The incremental analysis technique is a marketing decision-making technique that determines the true…
Q: Based on property tax assessments, which are believed to fairly represent values involved, the…
A: Fixed assets refer to the assets which are purchased for long-term use. They have low liquidity.
Q: ABC Company sells subscriptions to a specialized directory, which is issued semi-annually and…
A: The business organization sometimes receives the advance payments for items or services that will be…
Q: Cost of equipment P1,200,000 5 years 4 years Useful life of equipment Lease term Annual rent payable…
A: Sales type lease Accounting Concept of lease accounting lessor point of view Gross Investment…
Q: Budget Actual $45 780 $46 125
A: The answer has been mentioned below.
Q: What information is made available about the business in the following financial statements: a.…
A: Financial statements are a set of summaries of an organization's financial results, financial…
Q: Why is the statement of cash flows required as part of the set of external financial statements?…
A: (Note: Since you have posted multiple questions, we will solve the first question for you. For the…
Q: 1. Prepare journal entries to record the income tax and 2. Present the income tax expense in the…
A: Routine transactions, such as customer billings and supplier invoicing, should not be recorded using…
Q: below, prepare
A: Journal is the book of prime entry. In accruaval basis of…
Q: Saktanmokobaybeh Company uses standard costing for direct materials and direct labor. The following…
A: The Overhead Budget is defined even as expenditure ready to forecast or show all of the contingent…
Q: Palmgren Company produces consumer products. The sales budget for four months of the year is…
A: The production budget, which is established by a mix of the sales forecast and the anticipated…
Q: If a business had sales of $3,894,000 anda margin of safety of 20%, the break-even point in sales…
A: Formula used for calculating Break even point in sales dollars: = Business sales value x ( 100 % -…
Q: Plasma Storage Devices buys $10,000 of equity securities, which it classifies as available-for-sale.…
A: The related entries for the purchase and sale of Equity Securities are shown hereunder : Plasma…
Q: Pilipe, Inc. at its current production capacity of 200,000 machine hours. At this point total…
A: A variable cost is one that fluctuates as the activity changes. In a business, "activity" is often…
Q: Malcom's financial statements revealed uncollectible accounts expense of S8,000, accounts receivable…
A: Net realizable value = Accounts receivable - Ending Allowance for uncollectible accounts where,…
Q: Required: a. Harbor computes ROI using beginning-of-the-year net assets. What will the divislonal…
A: ROI is the ratio between the Income and Cost of the Investment. A higher ROI means the company earns…
Q: Bluejeans Company has an after-tax profit of P140,000. Bluejeans hás a return on sa 20% and the tax…
A: Contribution margin- Contribution Margin is defined as selling price minus variable cost, and it…
Q: 24. LO.2 (Cost per WA EUP) In October 2010, Rojo Inc.'s production was 53,600 equiva- lent units for…
A: Given that, During October : cost of ; Direct materials = $158,688 Overhead = $85,200 Conversion =…
Q: Baskin Promotions, Inc. sells T-shirts decorated for a variety of concert performers. The company…
A: A performance report summarizes the outcome of an activity or the work of a person. The report may…
Q: Upon investigation, an auditor concludes that the client has recognized an internally developed…
A: The answer for the multiple choice question and relevant explanation are presented hereunder :…
Q: The following activity and cost data that were provided by Hoist Corporation would help in…
A:
Q: Sales (20,000 units @ 60 per unit) $1,200,000 Less: Variable cost 20,000@ $45 900,000 Contribution…
A: Formulas: Increase in net operating income % = (Expected net operating income - Current net…
Q: Asap Imperial Jewelers manufactures and sells a gold bracelet for $407.00. The company’s accounting…
A: Introduction: Financial Advantage Associates is a full-service financial services organisation. It…
Q: Sales (20,000 units @ 60 per unit) $1,200,000 Less: Variable cost 20,000@ $45900,000 Contribution…
A: Degree of operating leverage (DOL): DOL reflects the variable and fixed cost relationship of an…
Q: LO.2 & LO.3 (Cost per WA & FIFO EUP) Pylonic Mfg. produces concrete garden border sections. All…
A: Process costing is the method where the cost is allocated at each process of production of goods.
Q: de Manulacturers Inc. is approached by a potential customer to fulfill a one - time - only special…
A: The minimum transfer price to be charged for special order is total variable cost. Since fixed cost…
Q: EasyLang Company provided the following information below Variable production costs…
A: Period costs are costs that are not directly linked with the production process. It include…
Q: Comment briefly but meaningfully on the following ratios (comparative figures are provided in…
A: Ration Analysis There are different type of Ratio which are available for the entity which can be…
Q: 3. Determine the semi-monthly pay for someone with an annual salary of $48 000.
A: Salary means the amount paid to worker or employee for the service rendered by that person. Annual…
Q: Per Unit 16,000 Units Per Year Direct materials $ 16 $ 256,000 Direct labor 12 192,000 Variable…
A: A set of charges that stay constant regardless of activity is known as fixed overhead. These costs…
Q: WT. Ginsburg Engine Company manufactures part ACT31107 used in several of its engine models. Monthly…
A: Introduction: Operating income, also known as income from operations. It is calculated by deducting…
Q: F. The records of Stedman Corp. included the following accounts, all of which are normal balances:…
A: The allowance for doubtful accounts is created to record the estimated bad debt expense for the…
Q: Sky High sells helicopters. During the current year, 110 helicopters were sold resulting in $850,000…
A: Contribution margin = $850,000 - $270,000 = $580,000 Selling price = $850,000 / 110 = $7,727.27…
Q: Buenos Company has two divisions, Divisior X and Division Y. Division X has a productiom capacity of…
A: In the given question, Division X has production capacity of 6,000 units and current production…
On January 1, 2021, Gee Company sold a machine with a cost of P500,000 and accumulated depreciation of P350,000 to Faye Company. In lieu of cash payment, Faye Company gave a 4-year, P100,000, 10% note. The note requires interest to be paid annually on December 31. The prevailing rate of interest for a note of this type is 16%.
Required: Compute the following: (Round off PV factors to 4 decimal places before multiplying.)
1. Gain or loss on sale of machinery (place parenthesis if loss)
2. Interest income
3. Current portion of the notes receivable
4. Non current portion of the notes receivable
Step by step
Solved in 3 steps with 1 images
- On January 1, 2021, Tee Company sold a machine with a cost of P500,000 and a carrying amount of P150,000 to Cee Company. In lieu of cash payment, Cee Company gave Tee Company a 4-year, P100,000, 10% note. The note requires interest to be paid semi-annually every June 30 and December 31. Required: Compute the following: (Round off PV factors to 4 decimal places before multiplying.) 4. Non current portion of the notes receivable Answer 5. Discount amortization in 2022On January 1, 2021, Kongguksu Co. acquired an equipment by issuing two-year, noninterest bearing note amounting to P1,000,000. The prevailing interest rate of the note is 12%. Assuming the equipment has no cash price equivalent, how much is the cost of equipment? (Use 4-decimal places)Required to answer. Single choice.On January 1, 2021, Beauty Company sold a machine with a cost of P500,000 and accumulated depreciation of P350,000 to Gee Company. In lieu of cash payment, Gee Company gave Beauty Company a 4-year, P100,000, 10% note. The note requires interest to be paid annually on December 31. The 10% interest rate is a realistic rate of interest for a note of this type. Required: Compute the following as of December 31, 2021: (Round off PV factors to 4 decimal places before multiplying.) 4. Current portion of notes receivable Answer 5. Noncurrent portion of notes receivable
- On January 1, 2021, Beauty Company sold a machine with a cost of P500,000 and accumulated depreciation of P350,000 to Gee Company. In lieu of cash payment, Gee Company gave Beauty Company a 4-year, P100,000, 10% note. The note requires interest to be paid annually on December 31. The 10% interest rate is a realistic rate of interest for a note of this type. Required: Compute the following as of December 31, 2021: (Round off PV factors to 4 decimal places before multiplying.) 1. Effective interest rate 2. Gain or loss on sale of machinery (place parenthesis if loss) 3. Interest incomeOn January 1, 2020, South Company purchased five delivery trucks for P 10,000,000 from West Company.South Company gave West Company 1 year non-interest bearing note (stated interest/nominal interest rate is 0) payable on January 1, 2021. At the date of purchase, the interest rate for this type of purchase is 13%. Round present value factors to four decimal places. Prepare an amortization table. Required: 1. What is the amount of Notes Payable that shall be reflected in the statement of financial position on December 31, 2020?______________ 2. What is the interest expense that shall be reported in the statement of financial performance on December 31, 2020?____________________On January 1, 2021, Omai Co. acquired an equipment by issuing two-year, noninterest bearing note amounting to $1,000,000. The prevailing interest rate of the note is 12%. Assuming the equipment has no cash price equivalent, how much is the cost of equipment? (Use 4-decimal places)
- On December 30, 2021, Jack company purchased an aircraft from Jill Co. in exchange for a noninterest bearing note requiring 10 payments of 450,000. The first payment was made on December 30, 2021, and the others are due annually on December 30. At the date of issuance, the prevailing rate of interest for this type of note was 12%. How much is the cost of the machine?On January 1, 2021, Ree Company sold a machine to Say Company. In lieu of cash payment, Say gave Ree a 5-year, P500,000 note. The machinery has a cost of P500,000 and accumulated depreciation as of January 1, 2021 of P150,000. The note is a non-interest bearing note and the prevailing rate of interest for a note of this type is 10%. Required: Answer the following questions: (Round off PV factors to 4 decimal places before multiplying.) 1. Current portion of the notes receivable 2. Non current portion of the notes receivableOn January 1, 2021, Ree Company sold a machine to Say Company. In lieu of cash payment, Say gave Ree a 5-year, P500,000 note. The machinery has a cost of P500,000 and accumulated depreciation as of January 1, 2021 of P150,000. The note is a non-interest bearing note and the prevailing rate of interest for a note of this type is 10%. Required: Answer the following questions: (Round off PV factors to 4 decimal places before multiplying.) 1. Gain or loss on sale of machinery (place parenthesis if loss) 2. Interest income
- On January 1, 2021, Cee Company sold a machine with a cost of P500,000 and carrying value of P150,000 to Tee Company. In lieu of cash payment, Tee Company gave Cee a 4-year, P100,000, 10% note. The note requires interest to be paid annually on December 31. The prevailing rate of interest for a note of this type is 16% and the principal amount of the note is to be paid in four equal annual instalments of P25,000 every December 31. Required: Compute the following: (Round off PV factors to 4 decimal places before multiplying.) 1. Gain or loss on sale of machinery (place parenthesis if loss) 2. Interest incomeStellar Company purchased a machine at a price of $92,700 by signing a note payable, which requires a single payment of $136,207 in 5 years. Click here to view factor tables. Assuming annual compounding of interest, what rate of interest is being paid on the loan? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to O decimal places, e.g. 13%.) Rate of interest %Roseland Design borrowed $700,000 on a 90-day note from CorpOne Funding Company. CorpOne discounts the note at 8%. (Assume a 360-day year is used for interest calculations.) Required: 1. Journalize Roseland's entries to record: a. The issuance of the note. b. The payment of the note at maturity. If an amount box does not require an entry, leave it blank. а. b. 2. Journalize CorpOne's entries to record: a. The receipt of the note. b. The receipt of the payment of the note at maturity. If an amount box does not require an entry, leave it blank. а. b.