The following details are obtained from the books of Hendry Itd. As on 30th June 2002 Share capital 100,000 75,000 10,000 equity shares of $ 10 each fully paid up 10,000 equity shares of $ 10 each $7.50 paid up 10,000 equity shares of $ 10 each $5 paid up General reserve 50,000 50,000 Liabilities 125,000 Fixed assets 180,000 220,000 Current assets The normal average profit (less tax) of the company is estimated at $30,000 and the estimated rate for capitalisation purpose is 10, transfer to general reserve 20%. Calculate the value of each type of shares by: 1. Asset backing method (Excluding goodwill) 2. Yield method
Q: Cosi Company uses a job order costing system and allocates its overhead on the basis of direct labor…
A:
Q: Income statement? Accounts Debit Credit (OMR) (OMR) Cash 120,000 Capital 100,000 Prepaid insurance…
A: An income statement is one of the financial statements prepared at the end of the reporting period…
Q: If Donald earns a nominal wage of R25 000 and he receives an increase in salary of R2 000, which of…
A: Lets understand the basics. Nominal wage is a amount of money. On other hand real wage is a wages…
Q: Re-Tire produces bagged mulch made from recycled tires. Production involves shredding tires and…
A: The direct costs incurred are debited to work in process account. The indirect costs incurred are…
Q: Illustration. The balance sheet of Mateo Roa on Oct. 1, 2021, before accepting Martin Penaco as his…
A: The investment by the partners in the partnership firm is recorded by debiting the assets invested…
Q: On 31 October 2012 the carrying amount of an entity’s delivery truck was R200 000 when its…
A: Introduction: In accounting, impairment is a continuous decrease in the value of the a company's…
Q: The Arcade Company entered into a 10 year lease under which it made payments of R26 720 annually in…
A: As per IFRS 16, the single lease payment for the land and building should be allocated in the ratio…
Q: Explain accounting domain with example
A: Accounting domain is the wide range of accounting including its all branches like financial…
Q: Antonio Melton, the chief executive officer of Thornton Corporation, has assembled his top advisers…
A: Net Present Value=(Present Value of Cash Inflows-Present Value of Cash Outflows)
Q: QUESTION 3
A: Variable Overhead Efficiency Variance = Standard Rate(Actual hours - Standard Hours) Standard Hours…
Q: describe the structure of a bank bill. In your explanation, clearly distinguish the roles of the…
A: Introduction: A bill of exchange is a written document that obligates one party to pay another a…
Q: Exercise 5-4A ( Algo ) Effect of inventory cost flow ( FIFO , LIFO , and weighted average ) on gross…
A: Value of Ending Inventory: FIFO Method: Under FIFO method using periodic inventory system, Value of…
Q: The following data were available for ABC Trading, which uses perpetual system, at Dec 31, 20X2:…
A: The cost of goods sold can be calculated by adding up net purchases in the beginning inventory and…
Q: Allen Company acquired 100 percent of Bradford Company's voting stock on January 1, 2017, by Issuing…
A: Consolidation refers to when one company acquires another company for consideration then their books…
Q: Depreciation OMR 12000 Net Profit OMR 148000 The following accounts decreased during 2020: Accounts…
A: Introduction: Cash flow statements indicate the inflow and outflow of cash. The primary distinction…
Q: Bello are subject to a tax rate of 40%. What is the effect of recognizing the deferred tax in…
A: Deferred tax is the tax amount which either increase or decreases the tax liability of the company…
Q: Calculate the balance of common shares at the end of 2022.
A: Capital of a company dividend into small units which is known as stocks/shares of the company.…
Q: Street Bank is considering giving Fallen Company a loan. Before doing so, it decides that further…
A: Inventory- Inventory is the goods that a company keeps in order to generate revenue. This includes…
Q: An attorney performs services of $1,100 for a client and receives $400 cash, with the remainder on…
A: Introduction: Journals: All the business transactions are to be recorded in Journals. Journals are…
Q: Beach Life Ltd. operates an online booking service restricted to beachfront properties around the…
A: Revenue recognition is the principle which states that revenue can be recognized when the…
Q: Required Indicate whether each account is an asset (A), liability (L), or part of equity (E).
A: Asset - Assets are the valuable resources owned by the company. It shows in the left side of the…
Q: Thatcher Inc. had the following transactions: March 1: Purchased cars on account from Blitz Inc. for…
A: Using periodic inventory system, the cost of goods sold is calculated at year end.
Q: 8.On August 20X1, ABC Company bought 10,000 shares of Z Corp at P120,000. Commission and taxes…
A: The meaning of the hold collect and sell is that these are the securities that are held till the…
Q: 8. A bond issued with a par value of $200,000 and a carrying amount of $195,500 is retired at 98.5.…
A: The bonds are the financial instruments for the business used to raise the money from the market or…
Q: How much is the gain (loss) on sale at Jan 20X2? 15,000 11,500 5,000 1,500
A:
Q: 2. How many regular hours will someone need to work to earn $250 at $12.50/h? 3. Determine two…
A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…
Q: 12. What amount in profit or loss should be recognized in 2021 as a result of the reclassification?
A: Gain or loss due to the changes in the accounting method of recording the investment depends upon…
Q: At 1 January 2020, Falmer Co had 15 million £1 equity shares in issue. On 1 April 2020, Falmer Co…
A: Number Amount 01-Jan-20 15 million 15 million 01-Apr-20 2.5 million 2.5 million 17.5…
Q: Create a balance sheet with the following information. Create a balance sheet for the following…
A: Balance sheet consist of all assets and all liabilities and owner's equity. Basic accounting…
Q: Current assets for two different companies at fiscal year-end are listed here. One is a…
A: Current assets refer to the assets that are likely to be consumed or sold within the normal…
Q: The following data was taken from ledger account balances and supplementary data for the XYZ…
A: Sales is the revenue earned from sales of goods and services in the business. Net sales is the sales…
Q: The following data were available for ABC Corp at Nov 7, 20X2: Net purchases ( Jan 1-Nov 7)…
A: Formula: Loss on fire at Nov. 7, 20x2 = Ending inventory x 75% where, Ending inventory = Inventory,…
Q: Pedro, single received the following during the taxable year: Proceeds of his life insurance paid at…
A: Gross income refers to the income which comprises of wages and salary in addition to other forms of…
Q: O P 6,999.39
A: Compound interest is used in case of lump-sum money accumulates in the future if interest is charged…
Q: The following accounts are taken from a balance sheet. 1. Cash 2. Retained earnings 3. Equipment
A: Introduction: Balance sheet: All assets and liabilities are shown in Balance sheet. it tells the net…
Q: Richard is a sales representative receiving an annual salary of ₱120,000 plus commission on all his…
A: Gross earnings refer to the total amount earned by a person before any deduction for the taxes,…
Q: .ABC Corp held the following items on Dec 31, 20X1: Cash on hand, P50,000 Petty cash fund…
A: Cash and cash equivalents mean cash or assets that can be converted into cash immediately. Cash…
Q: 12 13 Question 5 The following standard costs per unit, of one product, have been taken from the…
A: Material price variance = Actual quantity purchased(Standard price – Actual…
Q: Assume you are currently a shareholder who owns cumulative preferred stock with preemptive rights.…
A: Answer:- Shareholder meaning:- A shareholder is any individual, corporation, or organization who…
Q: How much is the Unearned Revenue for Unredeemed Premiums at December 31, 2021? 2. How much is the…
A: Solution of the problem uploaded in the second step
Q: A piece of machinery costs P50,000 and has an anticipated P8,000 salvage value at the end of its…
A: Depreciation is charged against the value of fixed assets. It can be calculated by using the…
Q: Revenues.. Expenses: Food, beverage, packing. Labor...... Rent (occupancy). General and…
A: Formula: Each line item percentage = ( Line item value / revenues value ) x 100
Q: Under the contribution income statement, a company's contribution margin will be lower if? Fixed…
A: Lets understand the basics. Contribution is a margin generated from sales after deducting variable…
Q: Putnam Company owns 80 percent of Swaraj Company. The excess of acquisition cost over book value was…
A: Inter-company transactions are the one which take place between two companies which are…
Q: The following information is available for Lock-Tite Company, which produces special-order security…
A: Payroll payment is the amount of money paid for the labor involved in the process of production. It…
Q: ccount Titles Debit Credit
A: Adjusting entries are non cash journal entries that are recorded at the end of the year so that the…
Q: January 2, 2018 Mr. B contracted a 1-year loan fro Metrobank for the purchase ad a depreciable life…
A: When you take loans from the banks than interest are to be paid and expenses to be recognized but…
Q: Moss Ltd. has the following activities: creating bills of materials (BOM), studying manufacturing…
A: In the context of the question, we are required to compute the cost assigned to the training…
Q: 14 15 16 and decided to liquidate their partnership Prior to the final distribution of cash to the…
A:
Q: Illustration. The balance sheet of Mateo Roa on Oct. 1, 2021, before accepting Martin Penaco as his…
A: Journal entries refer to recording of a business transaction in a journal during an accounting…
Step by step
Solved in 4 steps
- The Statement of Financial Position (SFP) of Arthur Corporation on June 30, 202X is presented below:Current Assets P195,000Land 1,320,000Building 660,000Equipment 525,000Total Assets P2,700,000Liabilities P525,000Ordinary Shares, P5 par 900,00Share Premium 825,000Retained Earnings 450,000Total Equities P2,700,000All the assets and liabilities of Arthur were assumed to approximate their fair values except for land and building. It is estimated that the land has a fair value of P2,100,000, and the fair value of the building increased by P480,000. Ezekeil Corporation acquired 80% of Arthur’s outstanding shares for P3,000,000. The non-controlling interest is measured at fair value.Required:a. Determine the goodwill or gain on bargain purchase assuming the consideration paid includes control premium of P852,000. Determine the goodwill or gain on bargain purchase assuming the consideration paid excludes control premium of P138,000 and the fair value of the non-controlling interest is…1. The following balances were obtained from the books of The Hartland Ltd as at December 31, 2015:DETAILS DR CRPremises800,00010% Mortgage250,000Retained earnings40,000Goodwill100,000Debtors110,000Creditors65,000General reserves30,000Management fees30,000Ordinary shares @ $0.50200,0005% Preference shares @ $1200,000Share premium50,000Motor vehicle80,000Prov. for depreciation on motor vehicle12,00010% Debenture120,000Mortgage interest7,000Debenture interest5,000Cost of sales750,000Closing stock80,000Insurance20,000Wages & salaries60,000Interim ordinary shares dividend2,000Bank53,000Sales1,100,000Commission received4,0002,084,0002,084,000Notes:a. Provide for depreciation on motor vehicle at 5% on the reducing balanceb. Insurance is prepaid by $4,000 while wages and salaries is owing by $20,000c. The goodwill should be written down by 25%d. Transfer $25,000 from profits to the general reservese. Corporation tax is estimated at $30,000f. The…Assume you are given the following abbreviated financial statement. ($ in millions)Current assets $150Fixed and other assets $200Total assets $350 Current liabilities $ 100Long-term debt $ 50Stockholders’ equity $200Total liabilities and equities $350 Common shares outstanding 10 million shares Total revenues $500Total operating costs and expenses $435Interest expense $10Income taxes $ 20Net profits $35 Dividends paid to common stockholders $ 10 Question: On the basis of this information, calculate as many liquidity, activity,leverage, profitability, and common stock measures as you can. (Note:Assume the current market price of the common stock is $75 per share.)
- The Balance Sheet of A Ltd. as at 31-3-2016 is as follows : $ I. Equity and Liabilities (1) Shareholders' Funds (a) Share Capital : Authorised Share Capital 1,50,000 Equity Shares of$ 10 each 15,00,000 Issued, Subscribed and Paid-up Capital 80,000 Equity Shares of $10 each, $ 7.50 each called up and paid up (b) Reserves and Surplus Ca ital Redemption Reserve Plant Revaluation Reserve Securities Premium Reserve A/c Development Rebate Reserve Investment Allowance Reserve General Re-erve 6,00,000 1,50,000 20,000 1,50,000 2,30,000 2,50,000 3,00,000 Total 17,00,000 II. Assets Sundry Assets 17,00,000 Total 17,00,000 The Company wanted to issue bonus shares to its shareholders at the rate of one share for every two shares held. Necessary resolutions were passed; requisite legal requirements were complied with: (a) You are required to give effect to the proposal by passing Journal Entries in the books of A Ltd. (b) Show the amended Balance Sheet.1. The following information was taken from the accounts of JT Corp at year end:Total income since incorporation P900,000Total cash dividends paid P260,000Proceeds from sale of donated shares P 90,000Total value of share dividends distributed P60,000Excess of proceeds over cost of treasury stocks sold P140,000What should be the current balance of retained earnings? a. P780,000b. P520,000c. P720,000d. P580,0002. see imagechoices: a. 176,000b. 263,000c. 204,000d. 321,000What is a Capital Asset?, Holding Period, Calculation of Gain or Loss, Net Capital Losses (LO 4.1, 4.2, 4.3, 4.5) Charu Khanna received a Form 1099-B showing the following stock transactions and basis during 2019: Stock DatePurchased Date Sold SalesPrice CostBasis 4,000 shares Green Co. 06/04/08 08/05/19 $12,000 $3,000 500 shares Gold Co. 02/12/19 09/05/19 54,000 62,000 5,000 shares Blue Co. 02/04/09 10/08/19 18,000 22,000 100 shares Orange Co. 11/15/18 07/12/19 19,000 18,000 None of the stock is qualified small business stock. The stock basis was reported to the IRS. Calculate Charu's net capital gain or loss using Schedule D and Form 8949.
- Use the following information for the next five (5) questions: The following data were compiled prior to preparing the statement of financial position of Arms Corporation. Authorized share capital, P100 par value 4,000,000 Unissued share capital 800,000 Subscribed share capital 480,000 Subscription receivable 120,000 Premium on share capital 320,000 Premium on bonds payable 240,000 Gain on sale of treasury shares 80,000 Donated capital 800,000 Share warrants outstanding 200,000 Reserve for bond sinking fund 400,000 Reserve for treasury shares 144,000 Reserve for depreciation 600,000 Treasury shares, at cost 144,000 Retained earnings, unappropriated 576,000 Cash dividends payable 160,000 Revaluation increment on property 800,000 Net unrealized loss on available for sale securities What is the contributed capital of the Arms Company? Group of answer choices 5,080,000…Use the following information for the next five (5) questions: The following data were compiled prior to preparing the statement of financial position of Arms Corporation. Authorized share capital, P100 par value 4,000,000 Unissued share capital 800,000 Subscribed share capital 480,000 Subscription receivable 120,000 Premium on share capital 320,000 Premium on bonds payable 240,000 Gain on sale of treasury shares 80,000 Donated capital 800,000 Share warrants outstanding 200,000 Reserve for bond sinking fund 400,000 Reserve for treasury shares 144,000 Reserve for depreciation 600,000 Treasury shares, at cost 144,000 Retained earnings, unappropriated 576,000 Cash dividends payable 160,000 Revaluation increment on property 800,000 Net unrealized loss on available for sale securities What is the total share premium of Arms Company? Group of answer choices 1,640,000 1,560,000…Use the following information for the next five (5) questions: The following data were compiled prior to preparing the statement of financial position of Arms Corporation. Authorized share capital, P100 par value 4,000,000 Unissued share capital 800,000 Subscribed share capital 480,000 Subscription receivable 120,000 Premium on share capital 320,000 Premium on bonds payable 240,000 Gain on sale of treasury shares 80,000 Donated capital 800,000 Share warrants outstanding 200,000 Reserve for bond sinking fund 400,000 Reserve for treasury shares 144,000 Reserve for depreciation 600,000 Treasury shares, at cost 144,000 Retained earnings, unappropriated 576,000 Cash dividends payable 160,000 Revaluation increment on property 800,000 Net unrealized loss on available for sale securities 96,000 What is the legal capital of Arms Company?
- E15-16 Contributed Capital Adams Company's records provide the following information on December 31, 2019: LO 15.8 Account Title Amount Additional Paid-in Capital on Preferred Stock Common Stock Premium on Bonds Payable Preferred Stock Bonds Payable Preferred Stock Subscribed $ 17,000 75,000 4,000 80,000 100,000 20,000 121,000 84,000 SHOW ME HOW Retained Earnings Additional Paid-in Capital on Common Stock Additional information: 1. Common stock has a $5 par value, 50,000 shares are authorized, 15,000 shares have been issued and are outstanding. 2. Preferred stock has a $100 par value, 3,000 shares are authorized, 800 shares have been issued and are out- standing. Two hundred shares have been subscribed at $120 per share. The stock pays an 8% dividend, is cumulative, and is callable at $130 per share. 3. Bonds payable mature on January 1, 2023. They carry a 12% annual interest rate, payable semiannually. Required: Prepare the Contributed Capital section of the December 31, 2019, balance…The total assets value of Boafo Plc is GHC600,000 and the shareholders’ fund is GHC360,000. The shareholders’ fund consists of :100,000 ordinary shares issued at GHC2 per share 200,000Retained earnings 160,000Calculate the book valuation of a share of QRS PlcItem Nos. 14 and 15 are based on the following information: revealed the following information: Preference Share Capital, par P 100 Preference Share Premium- Ordinary Share Capital- Ordinary Share Premium-- Subscribed Ordinary Shares Retained Earnings Ordinary Subscriptions Receivable 000.00S The shareholders' equity section of Charlie Company's balance sheet P 2,300,000 805,000 5,250,000 2,750,000 50,000 -- 1,900,000 400,000 - _____