What amount should be recognized as loss on purchase pommitment in 2022? 200,000 p. 100,000 E. 300,000 0.
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- On October 1, 2015, Bea company entered into a, P10,400,000 purchase commitment for a supply of a special product on Mar. 31, 2016. On December 31, 2015, the market value of this material had fallen to P10,000,000. On Mar. 31, 2016, the market value of the purchase commitment is P10,500,000. What is the gain/(loss) on purchase commitment that should be recognized on Mar. 31, 2016?On October 1,2018, Bane Company entered into a 6-month, 5,200,000 purchase commitment for a supply of a special product on March 31, 2019. On December 31, 2018, the market value of this material had fallen to 5,000,000. On March 31, 2019, the market value of the purchase commitment is 4,900,000. What is the loss on purchase commitment that should bane Company recognized on March 31, 2019? Select the correct response: 200,000 300,000 O100,000On November 1, 2021 Jeremiah corp, signed a noncancellable purchase commitment with its main supplier to purchase $900,000 of raw materials on March 1, 2022. By december 31, 2021, the raw materials under this contract had a market value of $890,000. On the march 1 purchase date, the market price was $850,000. Prepare the journal entries if needed on Nov 1 900,000 dec 31 890,000 march 1 850,000
- During 2021, Tartarus Company signed a noncancellable contract to purchase 500 sacks of rice at P900 per sack with delivery to be made in 2022. On December 31, 2021, the price of rice had fallen to P850 per sack. On May 9, 2022, Tartarus Company accepts delivery of rice when the price is P880 per sack. 54. In December 31, 2021 income statement, what amount of loss on purchase commitment should be recognized? A 15,000 B. 10,000 С. 25,000 D. 0 55. What amount of recovery of loss on purchase commitment should Tartarus recognize on May 9, 2022? A 10,000 B. 15,000 С. 25,000 D. 0 56. What amount of purchases should be recorded on May 9, 2022? C. 425,000 D. 480,000 A 450,000 B. 440,00021. A promissory note which is dated January 1, 20A was received from a client for service rendered by the ML Company for P350,000. Its term is 1 year (360 days) and carries with it a 10% interest rate. On the same date, due to financial needs, the company immediately have it discounted to a financial provider at 15% discount. Compute the amount of loss if the discounting arrangement is a conditional sale. Round off final answer to the nearest peso.. West Star Realty Corp. sells a commercial lot in the month of November 2021 underfollowing terms (including VAT):Total contract price P1,120,000Down payment. 11-01-2021 112,000First installment 12-01-2021 112,000The output VAT for the 4th quarter should be:a. P12,000 c. P30,000b. P24,000 d. P120,000
- Required: a. Determine the maturity dates of the March 1 and November 1 notes. Date of Note Maturity Date March 1 November 1PROBLEM: On December 31, 2019, FJ Company sold for P2,400,000 an old equipment having an original cost of P4,320,000 and carrying amount of P1,920,000. The terms of the sale were P480,000 down payment and P960,000 payable on December 31 of the next two years. The sale agreement made no mention of interest. However, 9% would be a fair rate for this type of transaction. Compute for the following: a) Gain/Loss on sale of equipment (Specify if gain or loss.) b) Interest income for 2020 c) Carrying amount of the note receivable on December 31, 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 given
- Company is considering purchasing EKC Company. EKCs balance sheet at December 31, 2019, is as follows: At December 31, 2019, Elm discovered the following about EKC: a. No allowance for uncollectible accounts has been established. An allowance of 5,000 is considered appropriate. b. The LIFO inventory method has been used. The FIFO inventory method would be used if EKC were purchased by Elm. The FIFO inventors-valuation of the December 31, 2019, ending inventors-would be 180,000. c. The fair value of the property, plant, and equipment (net) is 730,000. d. The company has an unrecorded patent that is worth 120,000. e. The book values of the current liabilities and bonds payable are the same as their market values. Required: 1. Compute the value of the goodwill if Elm pays 1,350,000 for EKC. 2. Next Level Why would the book value of a companys identifiable net assets differ from its market value?In a Nutshell Problem 21 On December 31,2019, Innovation Company sold a machinery costing P5,200,000 which had a carrying amount of P2,200,000 for P3,000,000. The terms of the sales were P600,000 down payment and P1,200,000 payable on December 31 of the next two years. The sale agreement made no mention of interest. However, 9% would be a fair rate for this type of transaction. The present value of an ordinary annuity of 1 at 9% for two years is 1.76. Required: 1. Prepare journal entries for 2019, 2020 and 2021. 2. Determine the carrying amount of the note receivable on December 31,2019, December 31,2020 and December 31,2021 3. Determine the interest income for 2019,2020 and 2021.At December 31, 2020, Shamrock, Ic., a manufacturer, has outstanding noncancelable purchase commitments for 63,000 pounds of raw material to be used in its manufacturing process. The purchase commitments require Shamrock, Inc. to pay $14 per pound for the raw material. The company prices its raw material inventory at cost or market, whichever is lower. (a2) Assuming that the market price as of December 31, 2020, is $10.00, record the journal entry. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31
