What amount should be recorded as the cost of new machine? P 1,940,000 P 1,980,000 P 2,070,000 P 1,950,000
Q: An S corporation shareholder may carry forward unallowed losses that exceed the basis of their stock…
A: S corporation is one type of business organizations in which income and losses are directly passed…
Q: Express the following comparative income statements in common-size percents. Using the common-size…
A: Introduction:- As per vertical statement analysis, Income statement shows each item percentage in…
Q: es Adams, Peters, and Blake share profits and losses for their APB Partnership in a ratio of 2:3:5.…
A: The liquidation of the partnership means the closing of the partnership. In this liquidation…
Q: Cullumber Inc. issues an $740,000, 10%, 10-year mortgage note on December 31, 2022, to obtain…
A: Journal Entry is the primary step to record the transaction in the books of accounts. The increase…
Q: Here are selected 2022 transactions of Ayayai Company. Jan. 1 June 30 Dec. 31 Retired a piece of…
A: Journal Entries: Journal entries are by far one of the most important skills to master…
Q: Nintendo was at year-end and was disappointed based on its preliminary results. Management expected…
A: Answer:- Cost variance meaning:- A cost variance is the difference between the cost that was…
Q: Notson, Inc. produces several models of clocks. An outside supplier has offered to produce the…
A: Make or buy is the managerial accounting decisions as per which the entity determines the cost of…
Q: parker Corp, which operates on a calendar year expects to sell 5.000 in October and expects to…
A: The budget is a financial document that contains the details of the expected revenues and expenses…
Q: Paola Farms, Inc. produces a crop of chickens at a total cost of $66,000. The production generates…
A: To answer this question two scenarios has to be considered.First when chicken is sold to a…
Q: Which of the following is not a common method of alternative dispute resolution.
A: Which of the following is not a common method of alternative dispute resolution? Solution: (D)…
Q: and Order Partnership. The partners share profits and losses in a 3:1 ratio. During the year, Law…
A: The question deals with partnership accounts. When a partner invests in partnership his capital…
Q: Son Toco Ltd has sought your assistance with recording some transactions it undertook in the…
A: Journal Entries are very important part and backbone of accounting system.They are very essential to…
Q: Two different product lines are manufactured and sold by Cheche Manufacturing Corp. Monthly fixed…
A: Break even point is the point at which total cost and total revenue are equal thats mean there is no…
Q: Malfoy Ltd sold a motor vehicle on 30 September 2014. The proceeds from sale were $21,000 cash. The…
A: Answer:- Depreciation meaning:- Due to usage, deterioration, or obsolescence, an asset's monetary…
Q: What employability skills do you need to get a business administration job (list three skills)
A: In order to get a business administration job, employability skills are important. Three skills that…
Q: Given the information below, what are the Assistant Project Manager's total wages and allowances? .…
A: Introduction SUTA (State Unemployment Tax Act) Employers are obligated to contribute to their…
Q: Peak Corporation owns 75 percent of Summit Company's voting shares, acquired on March 21, 20X5, at…
A: Sale of depreciable assets refers to the asset that is registered in the company's books that are…
Q: August 9. Purchased merchandise on account from Book Wholesalers, $1,950.00. Purcha Invoice No. 132.…
A: The general journal shows the debit balance and credit balance of each item of the company. It…
Q: Chu Company had the following records on a product called "The Widget" in 2015. Units Unit Cost…
A: Solution: Under FIFO method, inventory purchased first is considered as sold first and ending…
Q: Sunland Company's inventory on January 1, 2025, at cost and retail are $97,500 and $141,000,…
A: LIFO stands for Life In First Out refers to the method of inventory that is used for the purpose…
Q: Mead Incorporated began operations in Year 1. Following is a series of transactions and events…
A: A bond is a fixed-income investment that simulates a loan from an investor to a borrower (typically…
Q: French Impressionists is an independent cinema located in Melbourne. The cinema specialises in…
A: AASB (Australian Accounting Standards Board) is an Australian Government Agency which develops and…
Q: Garfield Corp. expects to sell 1,300 units of its pet beds in March and 900 units in April. Each…
A: Budgeted purchases = Budgeted cost of goods sold + Ending inventory - Beginning inventory Ending…
Q: Explain the reasons for the impairment and the justification for treating the write-down as a…
A: When the book value or carrying value of the asset is more than the recoverable value of asset, then…
Q: The Quick ratio is measured by (Cash + Receivables) / Current liabilities. Assume this ratio is…
A: The quick ratio refers to the measurement of the ability of the company for paying short-term…
Q: The following is the ending balances of accounts at December 31, 2024, for the Weismuller Publishing…
A: Balance Sheet is a part of Financial Statements of a company which reports a company's assets,…
Q: 8/31/21 9/1/21 9/30/21 10/1/21 10/31/21 Paid monthly expenses: Selling expenses General and…
A: Journal entries: Journal entries are the primary recording makes in the books of account. All the…
Q: What benefits accrue to companies who elect to use pension funds? How does the use of a pension fund…
A: A Pension plan is a type of retirement plan that requires an employer to contribute to a pool of…
Q: On October 1, 2021, Eagle Company borrowed $32,000 with 8% annual interest. The amount borrowed plus…
A: Given, Amount = $32,000 Interest rate = 8% October 1, 2021 to December 31, 2021 = 3 months
Q: Bond premium, entries for bonds payable transactions, interest method of amortizing bond premium.…
A: Bond :— It is one of the source of capital that pays fixed periodic interest and face value at the…
Q: Two different product lines are manufactured and sold by Cheche Manufacturing Corp. Monthly fixed…
A: Income statement is a financial statement that shows your company's revenues and expenses . In other…
Q: Which of the following statements is true for real rental property that has been depreciated using…
A: Which of the following statements is true for real rental property that has been depreciated using…
Q: Where did you get the $4 and the $2 from when finding the LIFO liquidation profit?
A: LIFO liquidation profit: When we use last in first out as a method for recording inventory, the most…
Q: hando Limited was incorporated during 2021: Preliminary costs (legal costs incurred in connection…
A:
Q: Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis Mackinaw Inc. processes…
A: Introduction:- Standard costs are estimates of the actual costs in a company’s production process…
Q: Discuss why companies are now abandoning the traditional costing method and embarking on the…
A: Activity Based Costing (ABC) is an accounting method that allows businesses to more accurately…
Q: 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (c) return on…
A: Ratio Analysis - The ratio is the technique used by the prospective investor or an individual or…
Q: Zeidler Company bought a building and the land on which the building is located for a total cash…
A: Business organizations are required to charge the depreciation expense so that in the books of…
Q: Question content area top Part 1 Sullivan Company issued $240,000, 10%, 10-year bonds payable at…
A: Bonds means the instrument where the bond holder gives money to bond issuer and in return bond…
Q: Roe's Renovations utilizes the direct write-off method of accounting for uncollectible receivables.…
A: Bad debt means where the amount receivable from debtor is not expected to realize and hence it…
Q: The following information is available to reconcile Branch Company's book balance of cash with its…
A: Bank Reconciliations are prepared in order to match the balance as per bank statement and balance as…
Q: Use the Information provided below to prepare the statement of comprehensive income for the year…
A: Statement of Comprehensive Income Regular operating earnings and other statement of income are both…
Q: Corporation C is a wholesaler that sells a single product. Management has provided the following…
A: Solution: Correct answer : (c) P112,230 Variable cost of sale = Change in cost / change in activity…
Q: THE SOLUTION IS ALREADY GIVEN, MAKE ONLY AN INTERPRETATION FOR THIS PROBLEM 5 sentences
A: Introduction:- Debt ratio is a solvency ratio. It measures a firm's total liabilities as a…
Q: Please help me with these questions in detail
A: Common Size Analysis Financial managers utilize common size analysis, also known as trend analysis,…
Q: 3. Hihotech Company reported net income of $2.3 million for the year ended 30 June 20X1 and had a…
A: Potential shares are financial instruments that can be converted to common shares. The basic EPS…
Q: he Journey Ends Wine Manufacturing extracted the following balance as at 30 June 2020. Inventory…
A:
Q: llowing is a requirement for a taxpayer who wishes to claim the special allowance for rental real…
A: Answer : Option a. Actively participate in the real estate activity is correct answer.
Q: axation 3B - dividend taxes VLC Ltd is a listed company. It paid cash dividends of R3 000 000 to…
A: Dividend is the share of profit that is, paid by company, to their shareholders. Dividend tax, is…
Q: Sales
A: Computation of cash flow and relevant notes/entries is essential to get a clear picture of your…
Step by step
Solved in 2 steps with 2 images
- Proton, Inc. acquired a new machine: Invoice cost, 5%/10, n/30 P1,800,000 Transportation cost 50,000 Installation cost 120,000 The new entity's main engineer spent two-thirds of his time on the new machine's trial run. The salary of the main engineer is P90,000 per month. The cost of insurance of the the new machine for the first year was P10,000. What amount should be recorded as the cost of new machine? O P 1,950,000 O P 2,070,000 P 1,980,000 O P 1,940,000Falther Inc. acquired a new processing machine: Invoice cost P1,800,000 Transportation cost 50,000 Installation cost 120,000 The purchase agreement stipulated that if payment is made within 10 days, the entity will receive a 5% discount. However, the entity paid after the discount time had expired. The new entity's main engineer spent two-thirds of his time on the new machine's trial run. The remuneration is P90,000 per month. The company requested for an allowance from the supplier since the machine's performance was below par. A cash allowance of P100,000 was issued by the supplier. The cost of uninstalling the old machine before installing the new unit was P10,000. 1. What amount of should be recorded as cost of the new machine?Reverend Company acquired a new processing machine at the beginning of the current year: Invoice cost – terms 5/10, n/30 1,600,000 Cost of transportation to the entity’s factory 50,000 Cost of installation (labor and materials) 50,000 Payment for strengthening the floor to support the weight of the new machine 150,000 The chief engineer spent two-thirds of his time during a trial run of the new machine. The monthly salary is P60,000. During the year, the entity was granted a cash allowance of P100,000 by the supplier because the machine proved to be of less than standard performance capability. The operator of the old machine who was laid off due to the acquisition of the new machine was paid a gratuity of P30,000. What amount should be capitalized cost of the new machine?
- ABC Corp acquired an equipment with an invoice price of P2,500,000 with terms of 3/30, n/65. Installation cost is P50,000. Decommissioning cost is P200,000. Expected useful life is 10 years and effective rate was 12% How much is the initial cost of the equipment? 2,550,000 2,539,395 2,614,395 2,750,000Kemp Inc. acquired a new processing machine: P1,800,000 Invoice cost Transportation cost 50,000 Installation cost 120,000 The purchase agreement stipulated that if payment is made within 10 days, the entity will receive a 5% discount. However, the entity paid after the discount time had expired. The new entity's main engineer spent two-thirds of his time on the new machine's trial run. The remuneration is P90,000 per month. The company requested for an allowance from the supplier since the machine's performance was below par. A cash allowance of P100,000 was issued by the supplier. The cost of uninstalling the old machine before installing the new unit was P10,000. a. P1,800,000 b. P1,840,000 c. P1,870,000 d. P1,780,000Abby Corporation acquired a new processing machine. Details of the acquisition are as follows: Invoice cost, terms, 5% discount if payment is made in 30 days. The company did pay within the discount period, P300,000, Cost of transporting the machine to the corporation's factory, P5,000. Cost of installation (which includes additional P2,000 incurred due to negligence of the workers), P11,000. The corporation's chief engineer spent one-fourth of his time during trial runs of the new machine, his monthly salary is P22,000. The company paid P1,000 for removing the old machine. (The old machine was sold for less than its book value.) At what amount should Abby Corporation capitalize the new processing machine?
- On 1 January 20X5 a company purchased some plant. The invoice showed $ Cost of plant 48,000 Delivery to factory 300 One year warranty covering breakdown during 20X5 1000 Modifications to the factory building costing $2,200 were necessary to enable the plant to be installed. it has depreciated on the straight line basis at 10% per year, with a proportionate charge in the years of acquisition and disposal what is the figure for carrying amount of plant in the company statement of financial position as at 31 October 20X5The Befort Company field for a patent on a new type of machine. The application coststotaled P12,000. R&D costs incurred to create the machine were P75,000. In the year inwhich the company filed for and received the patent, it spent P20,000 in the successfuldefense of a patent infringement suit.Orion Flour Mills purchased a new machine and made the following expenditures: Purchase price $ 59,000 Sales tax 5,200 Shipment of machine 840 Insurance on the machine for the first year 540 Installation of machine 1,680 The machine, including sales tax, was purchased on account, with payment due in 30 days. The other expenditures listed above were paid in cash. Required: Record the above expenditures for the new machine. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
- An engineer bought equipment for P500,000. Other expenses Jas including installation amounted to P30,000. At the end of its estimated useful life of 10 years, the salvage value will be 10% of the first cost, using straight line method of depreciation, what is allid eo the book value after 5 years? ne abnul gn A plant erected to manufacture socks has a first cost of 10,000,000 with an estimated salvage value of P100,000 at the end of 25 years. Find its appraised value to the nearest P100 by the sinking fund method, assuming at an interest rate of 6%a at the end of :a. 10 years, b. 20 years 2.RLC Manufacturing is planning to purchase a cutting equipment. Information are as follows: Equipment 1 Equipment 2 First Cost P 12,000 P 18,000 Salvage Value P 600 P 2,000 Annual Operation P 3,200 P 2,500 Annual Maintenance P 1,200 P 1,000 Taxes & Insurance 3% 3% Life, years 10 15 Money is worth at least 16%. Which equipment should be selected? Use: Annual Cost MethodOn 1 May 2020, Ron Trading purchased a new machine. The following paymentsrelate to the machine.List price $21,500Purchase discount $2,000Transportation cost $300Repair of damage parts incurred in transporting the machine $1,000Fees paid to test the machine before use $500Fees paid to the installer to install the machine $800Machine operator’s salary for the first month of operation $3,000Maintenance costs for the first month of operation $300(i) Identify and compute the cost of the machine to be recognised. Explainyour reasoning.(ii) Journalise the transactions. Assume the above payments are paid in cash.