In 20X1, Ameer Bhd took a bank loan of RM5M to finance construction of a building. It incurred a yearly interest of RM175,000, that was written off against the profits. As at 1 January 20X3, Ameer decided to capitalize the interest costs. On that date, the retained earnings of Ameer was RM15m.

In 20X1, Ameer Bhd took a bank loan of RM5M to finance construction of a building. It incurred a yearly interest of RM175,000, that was written off against the profits. As at 1 January 20X3, Ameer decided to capitalize the interest costs. On that date, the retained earnings of Ameer was RM15m.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: J. Smarly is a lawyer in practice by herself. The adjusted trial balance columns of the work sheet f...

A: Closing entries are made at the end of the accounting period and the main objective is to close the ...

Q: Appleton Company uses activity-based costing to apply overhead to and Apple glen. Appleton identifie...

Q: 7.Sam and Devon agree to go into business together selling college-licensed clothing. According to t...

A: Introduction: Gains and losses are unavoidable results of investment. Every investor is looking for ...

Q: Which of the following does not constitute fair presentation and compliance with IFRS? A) an entity...

A: When financial statements are devoid of substantial misstatements and adequately portray an entity's...

Q: Depreciation and Rate of Return Burrell Company purchased a machine for $43,000 on January 2, 2019....

A: Machine cost $43,000 Less: Residual value $- Depreciable cost $43,000 Divided by: Estimated ...

Q: Company sells a product for $90.00 per unit. Variable costs are $50 per unit, and fixed costs are $1...

A: calculation of contribution margin ratio are as follows

Q: repare journal entries to record the following: a. purchase of premiums b. sale of bottles of Acco...

A: Journal entry refers to the primary record of transactions and events in chronological order. They s...

Q: What is Riverbend’s DRD assuming it owns 60 percent of Hobble Corporation?

A: Solution:- Given, Riverbend incorporated received $200,000 dividend from stock Riverbend's taxable i...

Q: The following information was extracted from the financial statements working papers file for year e...

A: A balance sheet is a representation of an individual's personal or corporation's financial balances ...

Q: Bell expects to produce 1,900 finished goods units in January and 2,200 finished goods units in Febr...

A: A planned cost is a projected future expense that the organization expects to incur. In other words,...

Q: Question Content Area a. Prepare an amortization table for this installment note, similar to the...

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

Q: National Construction agreed to construct a building for Berninger Corp with construction beginning ...

A: Solution: Under percentage of completion method of long term construction contracts, revenue is reco...

Q: Carreras Café is a Spanish restaurant in a college town. The owner expects that the number of meals ...

A: The income statement represents the net income or net loss that is calculated by deducting the expen...

Q: If Going Merry Inc. has a net income of P 200,000 and a net sales of P 5,050,000 during 2020; and a ...

A: Return on sales = Net incomeNet sales×100

Q: Ken invests RM14,800 at 2% compounded quarterly for two years. a) Find the future value of the in...

A: The future value and the interest can be calculated as per the concept of time value of money

Q: At the start of the year, the balance on Sara's capital account was $55.689. During the year Sara ma...

A: Lets understand the basics. For calculating ending balance of capital account, we will need to use b...

Q: Find the Capitalized Cost of an infinite series of annual payments equal to $10,000 using an interes...

A: capitalised cost is such expenses that is added to the cost of company and the balance in on the bas...

Q: Department A had no Work in Process at the beginning of the period, 1.400 units were completed durin...

A: Solution: Department A Computation of Equivalent unit of Production Particulars Physical Unit...

Q: 3.14 Cue and Peed entered into a partnership on March 1, 200A. They agreed that Cue, the managing pa...

A: Statement of Profit & Loss CT Particulars Amount (P) lParticulars amount (P) To Purc...

Q: Entries for Bonds Payable and Installment Note Transactions The following transactions were compl...

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

Q: On April 10, 2021 Gamma Inc discarded an equipment that had an historic cost equal to 12,000 euro an...

A: Here the the amount for which the equipment is discarded is not disclosed. Therefore assuming that t...

Q: Mack Company purchased equipment in 2018 for S122,000 and estimated an S12,000 salvage value at the ...

A: Solution: Annual depreciation on equipment = (Cost - Salvage value) / useful life = ($122,000 - $12,...

Q: 1. Prepare a journal entry for each of the following transactions. a) Miracle Body Corporation sells...

A: A journal entry records a business transaction in the accounting system for an organization. Every...

Q: Required information [The following information applies to the questions displayed below) Shadee Cor...

A: To calculate budgeted cost of closures we need to Calculate required unit of production of sun visor...

Q: A certain operation is now performed by hand, the labor cost per unit is P 54 and annual fixed charg...

A: It is an analysis that determines the point at which the total revenues will be equal to total costs...

Q: A firm has a lower quick (or acid test) ratio than the industry average, which implies Select one: a...

A: The acid-test, also known as the quick ratio, compares a firm's most short-term assets to its most s...

Q: Spindle Company uses a Sales Journal, a Purchases Journal, a Cash Receipts Journal, a Cash Disbursem...

A: A sales journal is a specialized accounting journal and it is also a prime entry book used in an acc...

Q: Required information Exercise 8-11 (Algo) Trade and purchase discounts; the gross method and the net...

A: Solution 1- cost per unit = 600 -(600*20%). = 600 - 120. = $480. 2-Cost of purchase = 170 unit * $...

Q: Please help me to do the number 3 requirement, because I have got the solution for 1 and 2 aldready....

A: As per IAS 2 inventories are valued at either cost or market value whichever comes lower. For the gi...

Q: 12. Which of the following shows the first four stages of the writing process in the correct order? ...

A: The Stages of Writing Process in correct order are as follows: 1. Prewriting 2. Outlining 3. Draftin...

Q: Coronado has the following inventory information. July Beginning 1 20 units at $340 Inventory $17 60...

A: Under weighted average cost method using periodic inventory system, value of ending inventory and co...

Q: Mack Company purchased equipment in 2018 for $122,000 and estimated an S$12,000 salvage value at the...

A: The question is based on the concept of Depreciation Accounting. Depreciation is the decrease in the...

Q: Required: 1. Determine Shadee's budgeted cost of closures purchased for May and June. 2. Determine S...

A: Please see Step 2 for required information.

Q: What would be the payback period for the machine? What would be the net present value?

A: Cost of the Machine 360000 Life 6 years Salvage Value Zero SLM For Depreciation Ann...

Q: A building with an appraisal value of $132,577 is made avaitable at an offer price of $159,843. The ...

A: 1. Appraisal value = 132,577 2.offer price = 159,843 The cost of building to be recorded Cash am...

Q: A company produced 500 units of a product and incurred the following costs. Direct materials, P8,000...

A: Solution Formulas used Contribution margin = sales – variable cost Contribution margin rate ...

Q: Equity equals to a) Capital b) Retained Earnings c) Difference between assets and liabilities d) Pe...

A: As per IFRS 9 Financial instruments standard an equity is an residual interest in company assets af...

Q: The leading candidate for location will have a monthly fixed cost of $21,000 and variable costs of $...

A: Contribution margin rate = (Selling price per unit - Variable cost per unit) * 100/Selling price per...

Q: oasts whole coffee beans and sells them, along with a variety of freshly brewed coffees and other be...

A: A cash flow is defined as the net amount of cash or money being transferred into and out of business...

Q: Ridley Corporation i a sponsors a defined ben to the plan on January

A: Notes : According to Generally Accepted Accounting Principles (GAAP), net pension spending in the Un...

Q: Which is wrong? The term creditable input VAT means input VAT deductible from output VAT. Inpu...

A: Input tax is utilised against payment of output tax liability. Input tax will be credited for the g...

Q: Jinchuriki Inc.'s Financial Statement for years 2014-2015. Compute of the Average Collection Period....

A: Average collection period: It implies to a financial measure that shows a total amount of time it ta...

Q: 3. Consider the monetary neutrality. Suppose that the central bank changed the money supply. Accordi...

A: Money Neutrality is an economic theory which states that the change in the supply of money or stock ...

Q: If three municipal bonds are purchased at the price of 102, 100 and 99 – these bonds are said to be ...

A: Answer b) at a premium, at par, at a discount

Q: Bill owns a machine shop. In reviewing the shop's utility bills for the past 12 months, he found tha...

Q: Which of the following is not correct? a. Non-stock, non-profit private organizations are not s...

A: The correct answer for the above mentioned question is given in the following steps for your referen...

Q: Drake Company produces a single product. Last year's income statement is as follows: Sales (23,000 u...

A: Break-even point: The break-even point refers to the situation of the organization where neither pro...

Q: The Assistant Manager of Ridley Corporation is seeking your advice as the accountant, in dealing wit...

A: Answer:- 1 Accounting treatment for increase in warranty expenses:- Date Particulars Debit Credi...

Q: Lompany purchased equipment in 2018 for $122,000 and estimated an S12,000 salvage value at the end o...

A: Given info Cost of equipment $122,000 Salvage value $12000 Accumulated depreciation as at 31, Decem...

Q: b. Ir all direct materials are placed in process at the beginning of production, determine the direc...

A: The equiavlent units are the units completed during the period.

Concept explainers

Stock Market Indices

Stock indexes are used to compare the price fluctuations of a group of stocks of similar companies, which are combined based on a similar industry or a particular market capitalization limit or type of market. The price comparison is based on a pre-determined standard method or indicators. These stock indexes are usually considered a base for comparison of a particular stock, and the performance of that particular company can be easily determined.

Question

please answer question 1(c)

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Q.2. You are presented with the following information relating to Betty's Inc for the year to 31 March 2018: Bank overdraft 500 Called-up share capital (issued and fully paid) 2,100 Corporation tax (based on the profit for the year to 31 March 2018) 900 Accounts payable 300 Accounts receivable 200 Deferred taxation (credit) 80 Non-current assets: at cost 3,800 accumulated depreciation (at 31 March 2018) 1,400 Non-current asset investments: at cost 100 Retained profits (at 1 April 2017: credit) 1,200 Proposed dividend 420 Retained profit (for the year to 31 March 2018) 585 Share premium account 315 Inventory: at cost (at 31 March 2018) 400 Trade accounts payable 2,000 Trade accounts receivable 5,300 Required: In so far as the information permits, prepare Betty's Inc statement of financial position as at 31 March 2018 in accordance with the minimum requirements of the relevant accounting standards.
ne profit. A&B Co. started operations on April 1, 20x1. Mr. A, a partner in A&B Co., is entitled to 6% interest on the weighted average balance of his capital account. Mr. A's ledger shows the following: A, Capital Ref. Date Debit Credit Balance 100,000.00 79,000.00 87,000.00 001 100,000.00 April 1, 20x1 June 30, 20x1 September 30, 20x1 December 1, 20x1 (98 21,000.00 146 8,000.00 211 4,000.00 83,000.00 Requirement: Compute for the interest on Mr. A's weighted average capital balance.
Subject :- ADVANCED FINANCIAL ACCOUNTING (FIN611) Question # 2:XYZ Limited has the following loans outstanding as at December 31, 2020. Calculate the Capitalization RateLoan – A @ 8% (taken at January 01, 2020) Rs. 600,000Loan – B @ 5% (taken at July 01, 2020) Rs.400,000Loan – C @ 9% (taken at September, 01 2020) Rs.300,000The company spent following amounts on construction of an asset.March 01, 2020. Rs. 500,000August 01, 2020. Rs. 400,000December 1, 2020 Rs. 400,000 Note:- Solve these question and please explain in detail in such a way that i will get full marks.
3. Pagadian, Inc. reported the following during the year: P400,000 proceeds of life insurance of an officer where Pagadian is the beneficiary (P600,000 still uncollected.) P800,000 interest income, exclusive of P200,000 uncollected and accrued interest P300,000 increase in value of investment in stocks Compute the gross income under cash basis. P 800,000 b. P1,000,000 c. P1,200,000 d. P1,400,000 a.
The following information is available in respect of A Ltd Particulars As on 31.3.2019 (Rupees. In Lacs) As on 31.3.2020 (Rupees. In Lacs) Investment in Financial Assets - 100 Equity Share Capital 150 160 Long term Loans taken 100 200 Dividend paid - 26 Dividend received - 10 Interest received - 15 b. Calculate the relationship between the debt and equity for the year 2019 and 2020 and comment
N1. Exercise 29.5 Wattle Ltd owns all the share capital of Ashgrove Ltd. The income tax rate is 30%. During the period ended 30 June 2024, the following transactions took place: (a) Ashgrove Ltd sold inventories costing $50 000 to Wattle Ltd. Ashgrove Ltd recorded a $10 000 profit before tax on these transactions. At 30 June 2024, Wattle Ltd has none of these goods still on hand. (b) Wattle Ltd sold inventories costing $15 000 to Ashgrove Ltd for $22
Listed below are the current liability section and Note 7 of the Year 7 balance sheet of Joli Roma Corporation (the Company), a major oil company. $ millions Year 7 Year 6 Current Liabilities Current portion of long-term obligations Short-term obligations Accounts payable Accrued liabilities Taxes payable (including income taxes) $175 $89 691 530 2,996 3,196 1,046 1,099 1,289 997 $6,197 $5,911 Note 7 Short-Term Obligations The Company's "short-term obligations" consist of notes payable and commercial paper. Notes payable as of December 31, Year 7, totaled $102 million at an average annual interest rate of 5.7%, compared with $29 million at an average annual interest rate of 5.7% at year-end Year 6. Commercial paper borrowings at December 31, Year 7, were $839 million at an average annual interest rate of 5.7% compared with $260 million at an average annual interest rate of 5.9% as of December 31, Year 6. Bank lines of credit available to support existing commercial paper borrowings of…
Assume the following independent cases:A. At the beginning of the year, a check was issued for P400,000 as payment for a piece of land, and the buyer assumed the liability for the unpaid taxes at the end of the year, P10,000 and those assessed for the current year at P9,000.B. A company issued 14,000 ordinary shares (P10 par) with a market value of P60 per share (based upon a recent sale of 100 shares) for the land. The land was recently appraised at P800,000 by independent and competent appraisers.C. A company rejected an offer to purchase the land for P8,000,000 cash two years ago. Instead, the company issued 100,000 ordinary shares for the land (market value of the ordinary share, P78 each based on several recent large transactions and normal weekly stock trading volume).D. A company purchased land by signing a note with the seller, requiring P100,000 down payment, payment of P120,000 one year from purchase, and P80,000 three years from purchase. The note is non-interest bearing,…
At 1 September 20X1 the balance on capital account of Hai (a sole trader) was R31 754. In the year to 31 August 20X2 he invested an additional amount of R40 000 of personal funds and took a loan of R80 000 for the business. The income statement for the year to 31 August 20X2 reported a profit of R48 634 and Hai’s drawings during the year were R28 500. What is Hai’s closing capital balance at 31 August 20X2?
The following information for Neptune Ltd has been provided for the year ended 31 March 2022. Balances as at 31 March 2022. R Gross Profit 12 500 000 Trade payables 900 000 Land and Buildings 11 500 000 Mortgage loan (repayable in full on 31 August 2022) 2 750 000 Trading inventory 8 750 000 Ordinary share capital (R30 per share) 15 000 000 Earnings attributable to ordinary shareholders 5 000 000 Trade receivables 3 250 000 Fixed deposit (Maturing 28 February 2026) 1 450 000 Interest on loan 915 000 Bank (debit balance) 180 000 Additional information: The mark up percentage has been correctly calculated as 25% for the year ended 31 March 2022. Trading inventory was calculated at R7 125 000 at 31 March 2021. The shares are currently trading at R50 per share and total dividends paid at 31 March 2022 amounted to R2 000 000. REQUIRED: Calculate the following ratios for the year ended 31 March…
19. Ebasan Company have the following account balances: Cash (net of overdraft of P100,000) Accounts receivable Accounts payable Notes payable Loans payable Income tax payable Warranty obligations Deferred revenue Cumulative, redeemable preference shares at the option of the holder Non-cumulative, non-redeemable preference shares What is the total amount considered as financial liabilities? A. 4,620,000 B. 3,620,000 C. 4,600,000 D. 4,500,000 P300,0000 450,000 1,200,000 500,000 1,800,000 120,000 180,000 240,000 1,000,000 2,000,000
The year-end trial balance of Quin Ltd reports R400 000 8% debentures (issued 2004) and R16 000 as interest paid. In this regard identify the amounts to be reported as expense in the Statement of income for the year ended 31 December 2011 and as current liability on the Statement of financial position: Interest expense: R32 000; Current liability: R32 000 or Interest expense: R48 000; Current liability: R16 000, or Interest expense: R16 000; Current liability: R32 000 or Interest expense: R32 000; Current liability: R16 000.