(b) David commenced to trade on 1 July 2017 and prepared accounts to 31 December 2017 and to 31 December thereafter. He made the following acquisitions of main pool assets: Accounting Period to 31 December 2017 Asset 1 July 2017 Plant 20 October 2017 Computer equipment Accounting Year ended 31 December 2018 19 May 2018 REQUIRED Machinery £ 140,000 40,000 70,000 Compute the capital allowances for the 6-month period to 31 Dec 2017 &
Q: Using the high low method, Hadley Company calculated the variable cost as $2.5 per unit. The high…
A: The high-low method is used to differentiate the mixed cost. The mixed cost is the combination of…
Q: 6. The Fixed and variable costs are costs classification according to: A) Cost traceability B)…
A: Fixed cost refers to the costs which remain fixed or constant with the increase or decrease in the…
Q: Compute for the cost of inventory on consignment in the hand of Urban Furniture Co.
A: In consignment sales, the goods are sold through consignee. Consignor is the person who has goods…
Q: Managerial accountants could prepare all of the following reports except a(n) a.control report…
A: Annual Report: A complete report on a company's operations over the prior year is included inside…
Q: On January 1, 2059, The Rolling Stones (still the greatest rock'n'roll band in the history of the…
A: Depreciation Expense - Depreciation Expense is incurred due to use, wear and tear, Passage of time,…
Q: What was the economic profit or loss of Julian’s online clothing store in 2019? E. Evaluate the…
A: Economic Profit is the Profit earned by any Person after subtracting the actual costs incurred to…
Q: Productions Costs: Direct material $ 0.60 Direct labor $ 1.00 Variable…
A: Using variable costing method, only variable manufacturing costs are included in the product cost.…
Q: Harry Gryffindor incorporated Harry's Pottery on March 1, 20x7. Harry's Pottery is a merchandising…
A:
Q: Data of an individual taxpayer for the current taxable period: Gross sales Cost of sales Sales…
A: In the context of the given question, we are required to compute the net taxable income using the…
Q: 1. Calculate the following ratios in respect of the year ended 30 June 2022: (Round off to two…
A: Income from investment for the year amounted to £24 000. Investment at cost price = 80,000 * £1 =…
Q: An Americana Airway jet costs $42,000,000 and is expected to fly 350,000,000 miles during its 8-year…
A: Business organizations are required to charge the depreciation expense in their accounting books so…
Q: cost of production reports used for controlling andi
A: Cost of production refers to the cost that is incurred on manufacturing the product or providing…
Q: Show a complete solution 1. A loan of ₱ 250,00 at 10% converted annually is to be paid by…
A: Interest Rate- The fees assessed to the borrower in exchange for the assets taken from the lenders…
Q: Striker’s Match Company reports the following financial data: Net earnings $4,000,000 Shares…
A: Companies can reward their shareholders in two ways : 1) Dividends and 2) Repurchase of Shares.…
Q: [The following information applies to the questions displayed below.] Tory Enterprises pays $250,400…
A: Depreciation: When the value of an asset owned by a company decreases over time, this phenomenon is…
Q: Compute conversion costs given the following data: direct materials, $347,500; direct labor,…
A: Direct material cost is incurred to purchase the raw material that needs to converted into the…
Q: Required information Exercise 7-17 (Algo) Record the sale of equipment (LO7-6) [The following…
A: Introduction: A journal entry is indeed a record of a commercial transaction in a company's…
Q: ABC purchased 80% of the voting shares of XYZ Ltd. on Jan.1.2022 for $669,200. The preferred shares…
A: Here discuss about the details of the percentage of voting shares into the equity section of another…
Q: a. Management expects to sell equipment that cost $14,000 at a gain of $7,000. Accumulated…
A: Cash Receipt :— It is the amount of cash received from transaction involving cash inflow. Cash…
Q: ACC company makes and sells two products X and Z: X Z Price 6 10 Variable cost 3 5…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Consider the following information for company XYZ (shoe manufacturer): The relevant range is 7,000…
A: As per the honor code, we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit…
Q: insurance company reported a total gross premium of P2,100,000 and 100,000 cancellations. The…
A: Reserve Fund : It is the amount which is set aside from the profit and loss appropriation account to…
Q: Depreciation store: 150,000 Share in net income of associates: 500,000 Office salaries: 650,000 Loss…
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: On January 1, 2022, Buffet Trading Corp. leased machine by signing a 4-year lease contract. Annual…
A: Companies lease liability is calculated as follows- Annual Rental=P1742174 Useful life of the asset=…
Q: The static budget column in the contribution report is replaced with a flexible budget column. b)…
A: You have asked various multiple sub-parts under a single question kindly resubmit remaining…
Q: The total of the period costs listed above for December is: 89,000 325,000 310,000 399,000
A: In accounting period costs are those costs that are not included in the product costs. These costs…
Q: b. IKEA Berhad used the allowance method to account for uncollectible accounts. Apr 1 Sold RM2,500…
A: Date Particulars Debit (RM) Credit (RM) Apr-01 Notes Receivables 2500 0 Sales 0 2500…
Q: . Leverage involves using fixed costs to magnify the potential return to a firm. Explain the hedging…
A: Answer:- Leverage meaning:- Leverage is one of the investing technique that generally involves…
Q: The amount of sale to qualified PWDs INCLUSIVE of VAT is P1,120,000. Under the law, senior citizens…
A: VAT is applicable to the amount of sales done but some categories of sales are exempted from the VAT…
Q: Which of the following is the principal reason for preparing managerial accounting reports? a.GAAP…
A: Introduction: Managerial accounting reports are used for planning, regulation, decision making, and…
Q: An entity reported the following data on December 31,2019: Cash in bank, net of bank overdraft of…
A: Cash in bank net of bank o/d of 100000 = 1200,000 Cash in bank (Gross) = 1200,000 + 100,000 =…
Q: ich of the following statements concerning state sales tax is correct? All 50 states collect sales…
A: Sales Tax : It is the tax which is imposed on the sales of goods and services by the government. It…
Q: The following information is available for the employees of Webber Packing Company for the first…
A: These are the entries prepared to record the business transactions in the books of the company. The…
Q: On December 1, Daw Co. accepts a $28,000, 45-day, 6% note from a customer. (1) Prepare the year-end…
A: The journal keeps the record of transactions in the form of debit and credit. The assets and…
Q: Compute the current ratio as of the beginning of the month and after each transaction.
A: Current ratio -It measures the availability of current asset in an entity to satisfy its current…
Q: Direct Materials Direct labor (2 per hour) Variable overhead Rectang ind Chelsea. Camden 2 8 1 11…
A: Variable costs are costs which changes directly with change in activity level. For example, direct…
Q: Required information Exercise 7-10 (Algo) Determine depreciation for the first year under three…
A: In accounting we use depreciation to allocate the costs of an asset like an equipment, machinery…
Q: Exercises Exercise 4-1 Construction accounting The Gagliano Construction Company contracted to…
A: Comment- Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…
Q: roblem 8-3A Establishing, reimbursing, and increasing petty cash LO P2 Nakashima Gallery had the…
A: Introduction: A journal entry is a record of a business deal in the accounting system of an…
Q: You have just been hired as a new management trainee by Earrings Unlimited, a distributor of…
A: Budgeting - Budgeting is a very useful method of estimating Expenses and Incomes on the basis of…
Q: The balance on a mortgage was $43,000 and an interest rate of 4.25% compounded semi-annually was…
A: Monthly Payment: The amount that is due each month in order to pay off the loan within the allotted…
Q: 3. Counselors of Griffin purchased equipment on January 1, 2023, for $67,000. Counselors of Griffin…
A: Introduction: A journal entry is indeed a record of a commercial transaction in a company's…
Q: senior citizen or PWDs? a. 20,000 b. 25,000 c. 30,000 d. 40,000
A: Taxpayer reported gross non-VAT sales of P100,000 to a senior citizen who is at the same time a…
Q: Cash Notes Receivable Accounts Receivable Interest Receivable Merchandise Inventory stimated Returns…
A: Financial Statements : These are the statements prepare at the end of accounting year to know about…
Q: Based on the above information, what is the value of Billy’s TOTAL DEDUCTION ENTITLEMENT for his…
A: The work related expenses are those expenses which has been incurred by a person on the work which…
Q: The business grants 25% discounts to senior citizen customers. During the taxable period, total…
A: The correct answer is option - b) 75,000
Q: There was a problem with the first batch of items produced, so abnormal wastage costs of £0.10 per…
A:
Q: Which of the following is most associated with financial accounting reports? a.can be prepared for…
A: Introduction: The publishing of an organization's financial performance to its stakeholders and the…
Q: Nature of the entity's business: For example, if the entity is a huge retailer having several…
A: Management accountant are those accountant who works within the company in order to present as well…
Q: 1st July 2021, Hard Rock Pty Ltd a small construction business purchased two business assets for the…
A: Equipment looses values as time period goes and equipment is used more and more but most equipment…
Step by step
Solved in 3 steps
- An extract of the Asset Register of Ace Pty Ltd (“Ace”) for the 2018 - 2019 Income year isshown as follows:Asset Cost OpeningAdjustableValueMethod EffectiveLifeDecline inValue forThis PeriodClosingAdjustableValuePrinter 1,200 1,200 DiminishingValue3 years 400 800Desks 3,000 2,400 Prime Cost 10 years 300 2,100Appliances 2,600 1,040 Prime Cost 5 years 520 520All depreciable assets are 100% for business use and Ace uses a low-value pool for all eligibleassets. The closing value of the low-value pool at 30 June 2019 was $8,000. Ace purchased a camera on 20 Jan 2020 for $840.Advise Ace of the Income Tax consequences arising out of the above information for the 2019 - 2020 Income year assuming Ace is not a small business entity.(a) Draw up a profit or loss appropriation account for Lekan, Chuks & Hassan for the year ending 31 March 2015 and prepare current account as at that date from the following information: 1. Drawings: Lekan N3,500, Chuks N11,500 and Hassan N8,500 2. Capital account: Lekan N30,000, Chuks N22,500 and Hassan N17,500 3. Current account: Lekan N9,000, Chuks N4,000 and Hassan N3,000 4. Profits to be shared: Lekan 50%, Chuks 30% and Hassan 20% 5. Salaries to be credited: Chuks N11,000 and Hassan N14,000 6. Interest to be charged on drawings: Lekan N600, Chuks N450 and Hassan N250 7. Net profits N92,400 8. Interest to be charged on Capital: Lekan N1,800, Chuks N1,350 and Hassan N1,050During 2015, PJM Bhd incurred further development expenditure of RM3 million on the new process which meets the recognition criteria for capitalization of an intangible asset. Required (a) In the light of MFRS138 Intangible Asset, briefly explain how each of the above transaction should be accounted for in the financial statements of PJM Bhd for the year ended 31 December 2017.
- Dinnell Company owns the following assets: In the year of acquisition and retirement of an asset, Dinnell records depreciation expense for one-half year. During 2020, Asset A was sold for 7,000. Required: Prepare the journal entries to record depreciation on each asset for 2017 through 2020 and the sale of Asset A. Round all answers to the nearest dollar.Machine P was acquired on April 1, 2019 in exchange for 400, 000 face amount of bonds payable selling at 94, and maturing on April 1,2029 . The accountant recorded acquisition by a debit to Machinery and a credit to Bonds Payable for 400, 000 Straight line Depreciation was recorded based on a 5-year economic life and amounted to 54,000 for nine months In the computation of depreciation , residual value of 40,000 was used. What is the initial carrying amount of the PPE? What is the carrying amount if the PPE as of December 31, 2020?On 1 January 2017, Addo Limited acquired an investment property for GHC 11 million. The purchase agreement provided for settlement in full on 31 December 2017 (an appropriate discount factor is 10%). GHC 1 million transfer duty and GHC 20 000 legal fees were incurred and paid during January 2017 in respect of the acquisition of this property. Rates for the year ended 31 December 2017 of GHC100 000, were paid on 30 November 2017. All amounts given are exclusive of value added tax. During 2017, Addo Limited constructed an investment property, expenditure on which is detailed below: Labour: GHC 2 million (GHC 200,000 of which was incurred due to restore faulty work pe rformed by ‘scab’ labourers whilst the company’s employees were on strike and a further GHC 100,000 was in respect of unproductive time whilst waiting for the foundations to dry); Materials: GHC 8 million (GHC1,000,000 of which was incurred to restore faulty work performed by ‘scab’ labourers whilst the company’s employees…
- Barnum Company acquired several small companies at the end of 2018, and based On the acquisitions, reported the following intangible assets on its December 31, 2018, balance sheet.How much amortization expense should the company recognize on each intangible asset in 2019?On 1 July 2017, Entity A purchased a property (Land and Building) for $5,000,000. The value of the land and building are $600,000 and $4,400,000 respectively. The expected useful life of the building is 50 years with a residual value of $100,000. Entity A paid 60% by a cheque on 1 July 2017 and the balance was settled on 1 August 2017 through a bank transfer. On 30 June 2019, the property was revalued to $7,562,224 (land $980,224 and buildings $6,582,000) with a new estimated residual value of $120,000. On 30 June 2021, the property was sold to Entity B for $8,600,000. Entity A received 70% on the same date and the balance was settled on 1 August 2021. Entity A opts for annual transfer of the revaluation reserve. REQUIRED: According to relevant accounting standards, prepare journal entries to record the transactions of Entity A from 1 July 2017 to 1 August 2022. ACCOUNTS FOR INPUT: | Machine | Land | Building | Bank | Payable | Receivable | Retained earnings | Share capital | No…On 1 April 2014, Live Land Limited acquired a piece of freehold land at Jalan Sultan at acost $4,980,000. The acquisition was financed through a bank loan.The land was subsequently revalued to $5,100,000 on 1 October 2017.On 31 March 2019, the land was sold for $6,250,000 cash.Required:Prepare all the necessary journal entries to record the following:(a) Purchase of land on 1 April 2014. (b) Revaluation of land on 1 October 2017. (c) Disposal of land on 31 March 2019.
- Use the current asset section of the balance sheets of the Waverley Company as of June 30, 2017 and 2016 presented below to answer the questions that follow. 2017 2016Cash and cash equivalents R 75,000 R 58,800Trade accounts receivable, net 157,500 193,200Inventory 208,200 253,400Other current assets 18,400 15,500Total current assets R 459,100 R 520,900Total assets R2,650,000 R3,430,000Required:Complete a horizontal analysis of the current asset section of Waverley Company’s balance sheet for 2017. Your answers for “% Change” should be rounded to one decimal place, e.g.,…Suppose during 2022 that Federal Express reported the following information (in millions): net sales of $34,450 and net income of $89. Its balance sheet also showed total assets at the beginning of the year of $24,590 and total assets at the end of the year of $23,300.Calculate the asset turnover and return on assets. (Round asset turnover to 2 decimal places, e.g. 6.25 and return on assets to 1 decimal place, e.g. 17.5%.) Asset turnover enter the asset turnover rounded to 2 decimal places times Return on assets enter the return on assets in percentages rounded to 2 decimal places %Glorious Company Limited owns land that it purchased at a cost of $400 million ("m") in 2017. The company chooses to use revaluation accounting to account for the land. The land's value at the end of the following years were as follows: 2017 - $450m; 2018 - $360m; 2019 - $385m; and 2020 $410m. Required: Prepare the journal entries to record the land using revaluation accounting from 2017 - 2020 using the following table: Year Journal Land Unrealized Gain on Revaluation Loss on Impairment Recovery of Impairment Loss $'m S'm $'m $'m 2017 Dr Cr 2018 Dr Cr 2019 Dr Cr 2020 Dr Cr