4. At beginning of the period, Trip Co.'s biological assets have a total fair value less costs to sell of P1,300,000. At the end of the period, the fair value less costs to sell increased to P1,500,000. There were no increases or decreases in the number of biological assets during the year. Requirement: Provide the year-end adjusting entry.
Q: At Sept. 30, 20X9, Thatcher Inc.'s trial balance showed a brand at cost of 50,000,000 less…
A: The fair market value of the brand at Apr. 1, 20X9 = P30,000 Remaining useful life on April 1, 20X9…
Q: HAPPY Corp. assets have a carrying amount of P100,000 before year end adjustments. The PFRSs require…
A: As per Philippines Financial Reporting Standard, the accounting treatment of biological…
Q: HAPPY Corp. assets have a carrying amount of P100,000 before year end adjustments. The PFRSs require…
A: Fair value in case of principal market or in absence of principal market, the most advantageous…
Q: On 30 June 2014, the statement of financial position of Meezen Ltd showed the following non-current…
A: 1.
Q: 4. On November 1, 2021, Agar-Agar Corporation had a division that met the criteria for…
A: Discontinue Division: A company's discontinued operations are those aspects of its business that…
Q: Ham Co. changed its business model in 20x2. On Jan. 1, 20x3 (reclassification date), a debt-type…
A: SOLUTION- WORKING- FAIR VALUE ON RECLASSIFICATION DATE 240000 AMORTISED COST 200000…
Q: . On December 31, 2019, Opgenorth Company listed the following items in its adjusted trial balance:…
A: The income statement shows the net income or net loss calculated by deducting the expenses from the…
Q: Adjusting Entries,
A: Adjusting entries are journal entries made to correct account balances.
Q: ABEL company’s statement of profit or loss for the year ended 31 December 2019 showed a net profit…
A: Given: Net profit =Shs83,600,000Purchase of a motor van debited to the motor expenses…
Q: For 20X1, Silvertip Construction, Inc., reported income from continuing operations (after tax) of…
A: The partial income statement is used to report information as part of the normal accounting period.
Q: Dangerous Company’s investment property has a carrying amount of P800,000 before any year-end…
A: The Unrealized loss for investment property is recognised when fair value of assets is less than the…
Q: n January 1, 2011, Villa Company classified as held for sale a noncurrent asset with a carrying…
A: Answer: Option b - 4,000,000
Q: Ryan Company reported an impairment loss of P2,540,000 in its statement of comprehensive income for…
A: Depreciation Expenses:- It is an expense for the company incurred due to normal wear and tear of the…
Q: An entity had the following events and transactions during 2020: - Depreciation for 2019 was…
A: Answer: An entity had the following events and transactions during 2020:- Depreciation for 2019 was…
Q: On February 14, 2022, Frozen Company classified a non-current asset as held for sale. At that time,…
A: As per IFRS 5 when an asset is calssifed as a non-current asset as held…
Q: During the current year an entity sold a piece of equipment used in production. The equipment had…
A: (1) Sales Price = P 100,000 (2) Carrying Amount of Equipment = P 90,000 (3) Revaluation Surplus = P…
Q: Erase Ltd adopts the revaluation model for measuring equipment. In the previous year’s…
A:
Q: Harlem, Inc., was reviewing its assets for impairment at the end of the current year.Information…
A: Impairment loss of assets: Impairment loss of assets arises when the carrying value of the assets…
Q: n January 1, 2022, Labo Mo Company, met the criteria for discontinuance of a business segment. For…
A: Solution Concept As per the relevant accounting standard when a segment is discontinued the…
Q: Sheridan Corporation uses straight-line depreciation, prepares adjusting entries annually, and has a…
A: Lets understand the basics. In stright line basis, depreciation is calculated in equal installment…
Q: On January 1, 2016, Al's Sporting Goods purchased store fixtures at a cost of $180,000. The…
A: Double declining depreciation rate = Straight line depreciation rate x 2 = (100/10 years) x 2 = 20%
Q: Sison Company reported profts of P4,000,000 and P8,000,000 in 2021 and 2022, respectively, In 2023,…
A: Annual Depreciation (straight line method) = (Cost of the assets - Residual value) / Expected life…
Q: Harbin Ltd. has a 31 December year end. A motor vehicle was acquired in July 2019 for £20,000.…
A: Depreciation: It implies to a decrease in the book value of a fixed asset over the time because of…
Q: On December 31, Strike Company traded in one of its batting cages for another one that has a cost of…
A: The facility of providing trade allowance on an asset by the vendor to the organization in exchange…
Q: Sison Company reported profts of P4,000,000 and P8,000,000 in 2021 and 2022, respectively, In 2023,…
A:
Q: On January 1, 2021, Concretti Inc. had a division that met the criteria for discontinuance of a…
A: In financial accounting, discontinued operations are elements of a company's principal business or…
Q: On January 1, 2020, Company discovered that it had incorrectly expensed a P2,100,000 machine…
A: Definition: Assets: These are the resources owned and controlled by business and used to produce…
Q: What would be the net profit after adjusting for the error?
A: The omission of depreciation in the previous year’s financial statements is a prior period…
Q: 2. On January 1, 2019, KRIS KRINGLE Company purchased a ₱600,000 machine, with a five-year useful…
A: Change in method of depreciation is not a change in accounting policy. And hence no retrospective…
Q: On January 1, 2021,
A: In this question, we have to calculate discontinued Operations.
Q: You have been appointed as the Financial Manager of Red Slippers Trading. Your bookkeeper prepared…
A:
Q: On Jan 1, 20X1, ABC Corp purchased a patent for P90,000. At the time of purchase the patent was…
A: Expense is the charge against revenue. Depreciation and amortization is recorded as expense in the…
Q: For 20X1, Silvertip Construction, Inc., reported income from continuing operations (after tax) of…
A: Income statement shows net income or net loss. It includes the revenues and expenses of the company.…
Q: ABC Co.’s biological asset has a fair value less costs to sell of P 100,000 and P120,000,…
A: Asset refers to any economic value resource for an individual, corporation or a country. It…
Q: Nona Co. purchased land worth P20,000,000 on January 1, 2021. The company uses the revaluation model…
A: Under revaluation model, Property plant and equipment is measured at an estimated fair value of the…
Q: On January 1, 2021, Save Company discovered that it had incorrectly expensed a P2,100,000 machine…
A: Compute the depreciation per year: Depreciation per year = (P2,100,000-100,000)/10 = P200,000 Thus,…
Q: On a given day, two companies with the same accounting year end buy identical machinery for the same…
A: The question is related to Depreciation Accounting. As per Straight-line Method Depreciation is…
Q: In December 20x8, the Ayala Co. purchased land for P300,000. The land was held until December 20x9,…
A: Land is a very important fixed asset in business on which depreciation is not charged. It means its…
Q: Ham Co. changed its business model in 20x2. On Jan. 1, 20x3 (reclassification date), a debt-type…
A: SOLUTION- FV ON RECLASSIFICATION DATE 240000 AMORTISED COST 200000 DIFFERENCE 40000
Q: During the year, Ben Company received a total of P870,000 from its customer, P60,000 of which was…
A: Solution Concept Cash basis Under the cash basis income and expenses are accounted…
Q: On November 1, 2021, Agar-Agar Corporation had a division that met the criteria for discontinuance…
A: Reportable Income: Payments made to or on behalf of a person that must be "reported" to the…
Q: gain or loss from this sale
A: Annual depreciation under straight line method = (Cost - Residual value)/Estimated life in years…
Q: Brea plc, which has a financial year end of 31 December, has an item of plant which meets the…
A: This question deals with the concept of asset held for sale and impairment loss. When asset…
Q: Kentucky Enterprises purchased a machine on January 2, 2019, at a cost of P120,000. An additional…
A: Solution 10: Charging installation cost of P50,000 on repair expense, will result in overstatement…
Q: Investment property has a carrying amount of 800,000 before any adjustment. The property has a…
A: Fair value is the value exchanged for an investment between two knowledgeable person for a fair…
Q: A manufacturer of shipping equipment decided to lease an equipment with a fair value of P2,500,000…
A: As per the honor code, We’ll answer the first question since the exact one wasn’t specified. Please…
Q: On January 11, 2022, The Hughes Company applied for a tradename. Legal costs associated with the…
A: On January 11, 2022, The Hughes Company applied for a tradename. Legal costs associated with the…
Q: ompany which prepares financial statements to 31 December classifies a non-current asset as held for…
A: The amount by which the carrying value of an asset or a cash-generating unit exceeds its recoverable…
Q: On January 1, 2010, Nueva company, acting as a lessor, leased an equipment for ten years at annual…
A: Introduction: Lease is an arrangement between two parties wherein the owner of the assets allows…
Topic: AGRICULTURE
Requirements: Provide the year-end
Step by step
Solved in 2 steps
- Blackpink has sold during the year a depreciable asset that cost P11,250 and had a carrying amount of P2,400 with a P3,600 selling price. The disposal was correctly recorded. Here are the balances of the accumulated depreciation during the year: Jan 1- P127,800 and Dec 31 - P133,050. What will be the amount of the adjusting entry for depreciation expense during the year-end?On April 1, a patent with an estimated useful economic life of 12 years was acquired for $57,600. In addition, on December 31, it was estimated that goodwill of $35,000 was impaired. a. Record the acquisition of patent. If an amount box does not require an entry, leave it blank. b. Journalize the adjusting entry on December 31 for the amortization of the patent rights. Do not round intermediate calculations. If an amount box does not require an entry, leave it blank. Dec. 31Chloe Ltd purchased equipment on 1 April 20X2 for GHS 100,000. The equipment was depreciated using the reducing balance method at 25% per annum. Chloe Ltd prepares accounts to 31 March annually. Depreciation was charged up to and including 31 March 20X4. At that date, the recoverable amount of the equipment was GHS 42,000. According to IAS 36 Impairment of Assets, what was the impairment loss on this equipment calculated on 31 March 20X4?
- A P22,000 flow measurement instrument was installed and depreciated for 9 years. The instrument was then sold for P4,500. If the double declining balance method is used, determine the difference between the book value and market value at the end of year 9? (2 decimal places are required, no units required).1. A bookkeeper in error recorded the purchase cost of a new item of equipment as GHC36,000 when it should have been GHC360,000. A draft profit of GHC2,560,000 for the period was calculated before the discovery of the error. This included a depreciation charge of 10% (GHC3,600) for the equipment. What is the correct figure for profit?On April 1, a patent with an estimated useful economic life of 12 years was acquired for $100,800. In addition, on December 31, it was estimated that goodwill of $55,500 was impaired. a. Record the acquisition of patent. If an amount box does not require an entry, leave it blank. b. Journalize the adjusting entry on December 31 for the amortization of the patent rights. Do not round intermediate calculations. If an amount box does not require an entry, leave it blank. c. Journalize the adjusting entry on December 31 for the impaired goodwill. If an amount box does not require an entry, leave it blank.
- Newton Labs leased chronometers from Brookline Instruments on January 1, 2021. Brookline Instruments manufactured the chronometers at a cost of $180,000. The chronometers have a fair value of $225,154. Appropriate adjusting entries are made quarterly. (FV of $1. PV of $1. EVA of $1. PVA of $1. EVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Related Information: Lease tern Quarterly lease payments Economic life of asset Estimated residual value of chronometers at end of lease tern Interest rate charged by the lessor Required: 1. Prepare appropriate entries for Newton Labs to record the arrangement at its commencement, January 1, 2021, and on March 31, 2021. 2. Prepare appropriate entries for Brookline Instruments to record the arrangement at its commencement, January 1, 2021, and on March 31, 2021. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare appropriate entries for Newton Labs…Bay Lake Mining Ltd. purchases earth-moving equipment on 1 August 20X6 and signs a three-year note with the supplier, agreeing to pay $430,000 on 31 July 20X9. There is no interest in the note. The equipment purchased does not have a readily determinable market value. (PV of $1. PVA of $1, and PVAD of $1.) (Use appropriate factor(s) from the tables provided.) Required: 1-a. Does Bay Lake Mining Ltd. actually have a no-Interest loan? 1-b. This part of the question is not part of your Connect assignment. 2. Calculate the present value of the note payable, using an interest rate of 7%. (Round time value factor to 5 decimal places and final answer to the nearest dollar amount.) Present value Year 3. This part of the question is not part of your Connect assignment. 4. Prepare a table that shows the balance of the note payable and Interest expense over the life of the note. (Round your final answers to the nearest dollar amount.) No 1 Yes No 2 1 2 3 3 Answer is complete and correct. $…5. During the current year an entity sold a piece of equipment used in production. The equipment had been accounted for using the revaluation method and details of the accounts and sale are presented below: Sales price P100,000 Equipment carrying amount (net) 90,000 Revaluation surplus 20,000 Which of the following is correct regarding recording the sale? Group of answer choices The gain that should be recorded in other comprehensive income is P10,000 The gain that should be recorded in profit and loss is P10,000; the P20,000 revaluation surplus may be transferred to retained earnings. The gain that should be recorded in other comprehensive income is P30,000 The gain that should be recorded in profit and loss is P30,000
- Bay Lake Mining Ltd. purchases earth-moving equipment on 1 August 20X6 and signs a three-year note with the supplier, agreeing to pay $430,000 on 31 July 20X9. There is no interest in the note. The equipment purchased does not have a readily determinable market value. (PV of $1, PVA of $1, and PVAD of $1.) (Use appropriate factor(s) from the tables provided.) Required: 1-a. Does Bay Lake Mining Ltd. actually have a no-interest loan? 1-b. This part of the question is not part of your Connect assignment. 2. Calculate the present value of the note payable, using an interest rate of 7%. (Round time value factor to 5 decimal places and final answer to the nearest dollar amount.) Yes No Present value Year 1 2 3 Answer is complete and correct. $ 3. This part of the question is not part of your Connect assignment. 4. Prepare a table that shows the balance of the note payable and interest expense over the life of the note. (Round your final answers to the nearest dollar amount.) لنا 351,008…An asset, with a useful life of 10 years, wasacquired at the beginning of year 1 at a cost of $60 000. The asset is revalued at the beginning ofyear 4 in terms of the entitys revaluation policyto gross replacement cost of $ 80 000 at this date.Assume that depreciation calculated foraccounting purposes on the straight-line methodaccurately reflects economic obsolescence. What is the revaluation amount?Subject:- Account On 1 January 2019 the carrying value of equipment was R19 720 (cost price, R25 670 and accumulated depreciation, R5 950). On 1 January 2019 equipment costing R5 670 was purchased (not included in the R25 670). The depreciation policy is to provide for depreciation, on all equipment held at year-end, at 25% per annum on the diminishing-balance method. Prepare the PPE note..