7. In 2020, Lihim na Pagtingin Designs Corp. sold a layout design to Masaya Inc. and will receive royalties of 20% of future revenues associated with the said design. On December 31, 2020, Lihim na Pagtingin Designs reported royalty receivable of P75,000 from Masaya Inc. During 2021, Lihim na Pagtingin Design received a royalty payment of P200,000. Masaya Inc. reported revenues of P1,500,000 in 2021 from the layout design. In the 2021 income statement, what should Lihim na Pagtingin Designs report as royalty revenue? a. P125,000 b. P200,000 c. P175,000 d. P300,000

Q: Is it possible for a worksheet's income statement and balance sheet columns to sum up when they are ...

A: Worksheet income statement is the statement income each item of the income statements is shown as pe...

Q: Porter Corporation holds 10,000 shares of its $10 par common stock as treasury stock, which was purc...

A: Treasury stocks are reacquired own stocks of the company.   Sale of treasury stock in excess of cost...

Q: Crane Resort Corp. issued a 20-year, 4%, $298,000 mortgage note payable to finance the construction ...

A: The question is based on the concept of Financial Accounting.

Q: Chataqua Can Company manufactures metal cans used in the food-processing industry. A case of cans se...

A: An income statement is a financial report that indicates the revenue and expenses of a business. It ...

Q: Based on the above, compute for the following as of December 31, 2015: 1. Land 2. Land improvements ...

A: Hi student Since there are multiple subparts, we will answer only first three subparts. 

Q: Fair Value Journal Entries, Available-for-Sale Investments Storm, Inc. purchased the following avail...

A: The investments are the assets of the business which can be short term or long term investments.  

Q: National Co. believes that its collection costs could be reduced through modification of collection ...

A: Accounts receivable is the amount due (balance) to a firm for goods or services delivered but not ye...

Q: Problem #1 Admission by Purchase of Interest The capital balance of the Song and Monte partnership o...

A: The partnership comes into existence when two or more persons agree to do the business and further s...

Q: Ace Holding Co. shows the following investments in its accounting records at January 1, 2020: Ordina...

A: Solution Royalty income is income received from allowing someone to use your property. Royalties are...

Q: Review the following independent auditors’ report: To the Board of Directors and Shareholders Comp...

A: GIVEN   To the Board of Directors and Shareholders Company XYZ"We have audited the accompanying bala...

Q: Super Soups, Inc. is a Chicago based company that produces soup. Super Soups is publicly traded and ...

A: Loss on Sale of Assets: It  is an ordinary activity and occurs when carrying amount of assets is les...

Q: Which of the following statements is true about fixed and variable costs? * Both costs are constant...

A: Solution:- When sales units are increases or decreases the total sales also increase or decreases an...

Q: Sherri’s Tan-O-Rama is a local tanning salon. Its regression output is as follows:     Coefficient...

A: 1.Unit Contribution Margin = Sale Price - Variable Cost = $7.40 - $2.12 = $5.28  

Q: s: rchased a cash register (to be used for the business) on account for $8 ny received $3,070 from c...

A: Tre Tech Corp sells technology products and provides services . All the transactions are business re...

Q: The following information is available for the Danske Company: Denominator hours for May 20,000 Actu...

A: Actual Total Overhead = Variable overhead applied based on direct labor hours allowed + Fixed overhe...

Q: ABC Corporation was organized on January 3, 2014, with authorized capital of 100,000 shares of $10 p...

A: January 7 :- Issued 40,000 shares at $12 per share which means Common stock = 40,000 x 10 = 400,000 ...

Q: Assume that for a particular company, the only temporary difference for tax-effect accounting purpos...

A: Depreciation refers to the permanent decline in value of tangible assets, because of wear and tear d...

Q: nformation about direct materials cost follows for a local company:           Standard price per ma...

A: Standard costs is the budgeted cost of producing or selling the product in the market. This will be ...

Q: sements from the firm. According to the understanding and acceptance of the basic principles and con...

A: Marketing managers should be informed about it by the accounts and finance manager or controller.  P...

Q: National Co. has P5 million in inventory and P2 million in accounts receivable. Its average daily sa...

A: The inventory conversion period means, in how many days the inventory is converted into sales by the...

Q: On March 31, 2021, Gardner Corporation received authorization to issue $50,000 of 9 percent, 30-year...

A: Note:- Since you have posted a question with multiple sub-parts, we will solve the first three sub-p...

Q: Nov. 30: Journalized the monthly payroll for November, based on the following data. Description ent...

A:  answers Description Debit Credit Sales Salaries Expense $135,000   Office Salaries Expens...

Q: Case scenario: You are a newly hired accountant for Sushi Beeber, Inc., a retail company specializin...

A:     (A) (B) (A x B) (C) (A x C)       Date Purchase/ Sale Units Purchase unit cost Purchase price ...

Q: Crosby, Inc., sells $1,000,000 general obligation bonds for 98. The interest rate on the bonds, paid...

A: Since you have asked multiple question, we will solve the first question for you. If you want any sp...

Q: Compute the following: a. The amount of FICA taxes that was withheld from his earnings during 20-- b...

A: Tax refers to the amount charged by the government on individuals, partnership firms, HUF’s or any c...

Q: The direct labor standards for producing a unit of a product are two hours at Ph10 per hour. Budgete...

A: Standard hrs per unit = 2 Hours Standard rate (SR) = Ph10 Actual production = 900  Units Standard hr...

Q: Use the following to answer questions 16 - 19 For each transaction indicate whether it should: A. in...

A: Assets = Liabilities + Stockholders Equity Stockholders' Equity = Common stock + Retained earnings R...

Q: Angel owned a property costing Php. 2,000,000.00. She exchanged her property with the lot of Princes...

A: Lets understand the basics. When asset is transfer for non monetary consideration then exchange shou...

Q: On September 25, a hurricane destroyed the work in process inventory of Biloxi Corporation. At that ...

A: Solution Cost of good sold = sales * % of selling price.  

Q: Joshua is admitted by purchase of interest. b. Joshua is admitted by purchase of interest from Herbe...

A: Herbert and Ireneo are partners sharing profits and losses in the ratio of 60 % and 40%. Their capit...

Q: Concord Inc. is a retailer using a perpetual inventory system. All sales returns from customers resu...

A: Perpetual Inventory system is a system wherein inventory in counted continuously and update the same...

Q: EXHIBIT 25-2 The Exemption Equivalent Year of Transfer Gift Tax Estate Tax 1986 $500,000 $500,000 19...

A: Solution Estate tax  is a tax on your right to transfer property  at your death.

Q: To justify changes in collection procedures, the minimum annual reduction of costs (using a 360-day ...

A: Average collection period refers to the duration within which a company is able to recover its credi...

Q: Martinez Shoe Sales has a January 31 fiscal year-end. At the start of the year, Martinez had 250 pai...

A: Inventory is an important part of accounting as it plays a vital role in subject to any company's li...

Q: National Co. is considering changing its credit terms from 2/15, net 30 to 3/10, net 30 in orde to s...

A: Cost Accounting- Cost accounting is a process of accounting wherein all the costs related to any pro...

Q: Required: i. Prepare the Statement of Profit or Loss and the Statement of Financial Position as at 3...

A: Statement of income shows all the income(s) earned by the organization. There are certain ways for c...

Q: Weighted Average Cost Flow Method Under Perpetual Inventory SystemThe following units of a particula...

A: A perpetual inventory system is an inventory management system that records the inflow and outflow o...

Q: Problem #4 Admission by Investment of Assets Dapun, Boyo, and Dino have equities in a partnership of...

A: During the admission of a new partner, different methods are used to record the transactions relatin...

Q: Consider the following potential events that might have occurred to Global on December 30, 2019. For...

A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for yo...

Q: When a change in the manufacturing process reduces the number of direct labor hours and the standard...

A: Solution: A. A favourable labor usage variance

Q: sed on the following data, prepare a bank reconciliation for December of the current year: a. Balan...

A: "Analysis and adjustment of differences between the cash balance shown on a bank statement, and the ...

Q: JFC Corporation values its inventory by using retail method: 1. How much is the ending inventory at...

A: Retail Inventory Method Retail inventory method which is used to measure the merchandise inventory w...

Q: Williams Corporation reports the following direct labor information for November: Standard rate $ 3...

A: Labor Price variance = (Actual rate per hour - Standard rate per hour)*Actual hours worked Labor eff...

Q: HandiQ Inc. is a hardware store that sells goods and provides services. Analysis of the company's ac...

A: The adjustment entries are prepared at year end to adjust the revenue and expenses of the current pe...

Q: (a) Determine the present value of minimum lease rental payment

A: Lease liability refers to obligation of the company requires to pay periodic lease payment on the le...

Q: If the entity is using the equity method to account for investment in subsidiary, the entry to recog...

A: Solution: Under equity method of accounting, investment is recognized at cost, then share is income ...

Q: Question 22

A: An account receivable is defined as it is money that has not been paid by customers after using the ...

Q: Saved Help On September 1, 2021, Evansville Lumber Company issued $80 million in 20-year, 10 percent...

A: Introduction:- The act of recording or keeping track of any financial or non-financial action is kno...

Q: On 14 December 2021, Catz Zone Enterprise received the monthly bank statement for the month of N sta...

A:     Bank Reconciliation Statement as at 30 November  2021   Particulars   Amount     Closing Ba...

Q: Question #1: Triple Creek Hardware Store currently uses a periodic inventory system. Kevin Carlton,...

A: note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new ques...

Contract Costing

Contract costing is about tracing particular costs related to a particular contract entered into with the customer. It is one of the forms of job order costing. It is useful in long-term contracts at the most. It is seen that substantial time is required for the completion of the contract which takes different accounting periods. Thus, it is very much helpful for recognizing the costs associated with it and accounting in their specific accounting periods.