A company was granted R12 000 to assist in the financing of mining expenses. The grant was conditional upon the company mining for at least 2 years. The company ceased mining on 30 August 2021. Terms of the grant required the grant to be paid in full. Mining expenses to date 2020 R45 000
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- Prepare journal entries to record the following transactions. You are required to show all calculations: the financial year-end of the client is 30 November 2021. 3.1 The company adopted the straight-line depreciation method. Record the 15% depreciation on the plant and equipment purchased On 1 December 2020 for R125 000. 3.2 The allowance for credit losses account has an opening balance of R4 500. The policy requires the allowance to equate 8% of the total accounts receivable. The debtors sub-ledger totaled R52 000 prior receiving 40c in the rand on an account of R3 000. The financial manager instructed the write off on the balance WITH GENERAL LEDGER ENTERIES: Please dont provide answer in image format thnkuA Corporation began construction work in 2019 for a project with a contract price of P8,000,000. The Corporation uses the percentage-of-completion (Over time) method. The financial statements for 2019 relating to the contract shows the following: Accounts receivable P500,000 Construction in progress 1,600,000 Progress billings to date 1,500,000 Gross profit earned in 200,000 1.) Compute the cash collections for the year 2019 2.) Compute the costs incurred to date on the year 2019.On January 1, 2019, Q Co. contracted for the construction of a building for 20,000,000 on land that it had previously purchased. The building was completed on December 31, 2019. The following payments were made to the contractor: Payment date AmountJanuary 1. 2,000,000March 1. 6,000,000August 30. 10,000,000December 1. 2,000,000 The following represents the borrowings of Q Co. as of December 31, 2019:• 10%, 7,000,000, 4-year note dated January 1, 2019 with simple interest payable annually, specifically borrowed to finance the construction project. Interest income earned on the temporary investment of the proceeds is 120,000.• 10%, 10,000,000, 10-year note dated January 1, 2019 with interest payable annually.•12.5%, 15,000,000, 10-year note dated December 31, 2018 with interest payable annually. The building is estimated to have useful life of 20 years and a residual value of 1,482,500. The Building is…
- On January 1, 2020, X company acquired an equipment for P1,000,000 payable in 5 annual equal installments every December 31 of each year. Interest is 10% on the unpaid balance.Required: Prepare the all the relevant journal entries in 2020 and 2021on 30.11.20X1 the company undertook the maintenance of a customer's machines in exchange for the total amount of €6000. on the same date he received the amount of €4000, the amount registered as an advance payment. By the end of the year, the company had completed 60% of the total project, with the remainder to be completed next fiscal year. The mentioned amounts are considered significant.a. registration initialb. adjustment recordCasio Co. recognizes construction revenue and expenses using the percentage-of-completion method. During 2020, a single long-term project was begun, which continued through 2018 Information on the project follows: 12/31 Accounts Receivable balance Construction expenses for year Gross Profit recognized in year Bangs during year The 12/31/21 CIP balance is Select one O $50,000 Ob 1322,000 O 1619.000 Od $106.000 O $112,000 2020 $100,000 105,000 122,000 100,000 20121 $300.000 192,000 200,000 420.000
- Zephyr Company is provided a grant by a foreign government for the purpose of acquiring land for a building site. The grant is a zero-interest loan for 5 years evidenced by a promissory note. The loan was granted on January 1, 2021 for 8,000,000. The market rate of interest is 6%. The present value of 1 for five periods at 6% is .7473. Required: Prepare journal entries for 2021 and 2022.On December 4, 2019 Charie purchased office equipment for 400,000 , terms 2/10,n/15 , inclusive of a 12 % creditable input VAT entry was made on the date of purchase . The same was paid on December 31, 2019 and the former accountant debited Office Equipment and credited Cash for 400, 000 What is the correct initial carrying amount of the PPE?Modern Construction Ltd. obtained a contract No. B-37 for the $ 40 lakhs. The following information relate to the contract for the year ended 31st March, 2019: 01/04/2018 31/03/2019 •Work-in-progress: •Work certified •Work uncertified • Materials at site •Accrued wages 9,40,000 30,00,000 11,200 32,000 8,000 20,000 3,000 5,000 Additional informations relating to the year 2018-2019 are : •Materials issued from store • Materials directly purchased • Wages paid •Architect's Fees •Plant Hire Charges • Indirect Expenses 4,00,000 •Share of General Overheads 1,50,000 for B-37 6,00,000 •Materials Returned to Store 51,000 •Materials Returned to Supplier 50,000 •Fines and Penalties paid 10,000 18,000 25,000 15,000 12,000 The contractee pays 80% pf the worke certified in Cash. You are required to prepare: (i) Contact Account showing clearly the Amount of profits transferred to Profit and loss Account (ii) Contractee's Account. (iii) Balance Sheet.
- On July 1, 2020, Manuel Corporation purchased machinery worth P 8,000,000. Terms: P 500,000 down payment, the balance on three equal annual payments every July 1 of each year. The cash price of the machinery is P 6,000,000. A promissory note is issued for the installment balance. Required: 1. What would be the journal entry to record the acquisition of machinery? 2. What would be the journal entries to record the amortization at December 31, 2020? 3. What is the carrying amount of machinery at December 31, 2020?On January 1, 2021, Raquel Company purchased a machine for 3,000,000. The entity received a government grant of 500,000 in respect of this asset. The policy is to depreciate the asset over 5 years on a straight line basis and to treat the grant as deferred income. On January 1, 2023, the grant became fully repayable because of non compliance with conditions. Required: Prepare journal entries for 2021, 2022 and 2023.A company offered a contest in which the winner would receive P 1,000,000, payable over twenty years. On December 31, 2021, the company announced the winner of the contest and signed a note payable to th winner for P 1,000,000, payable in P 50,000 installments every January 2. Also on December 31, 2021, the company purchased an annuity for P 498,250 tp provide the P 950,000 prize remaining after the first P 50,000 installment, which was paid on January 2, 2022. 1. On December 31, 2021, what amount should be reported as note payable- contest winner, net of current portion?