At the beginning of 2021, an entity purchased a fire insurance policy covering a property for a period of two years. The P56,000 cost of the policy was paid in cash. At the end of 2021, by how much will the Prepaid Insurance for this policy be reduced? Your answer
Q: When bonds are issued at a discount, what happens to the carrying value and interest expense over…
A: Bonds can be issued at both at a premium or at a discount. When issue price is lower than face value…
Q: Merry Corp. holds stock in Bright, Inc. This year, Merry Corp. receives a cash dividend of $500 from…
A: Dividend received are generally reported in operating activities. Dividend paid are reported in…
Q: Digital marketing provides flexibility for sellers by...... O enabling personal announcements or…
A: Digital marketing is one of the key aspects of today's world it is one of the form of modern day…
Q: Concord Corporation issued 2,700 6%, 5-year, $1,000 bonds dated January 1, 2025, at face value.…
A: Bonds :Bonds is a long-term debts issued by the government and companies to raise funds for their…
Q: Dunbrook Travel, Inc. acquired an 80% interest in Ocean Cruises on December 31 for $970,000.…
A: Whenever an entity acquires control over other entity, it has to apply the equity method to record…
Q: Exercise 10-6 (Algo) Record common stock, preferred stock, and dividend transactions (LO10-2, 10-3,…
A: Journal Entry :— It is an act of recording transaction in books of account when transaction…
Q: Ms. Prince wants to create a scholarship in honor of her parents at the law school from which she…
A: Contributions to a scholarship fund: IRS offers a charitable contribution deduction to a taxpayer to…
Q: Sweet Acacia Industries expects credit sales for January, February, and March to be $200,400,…
A: Cash collection budget includes the estimated amount of cash received from the Accounts receivable.…
Q: The production department is proposing the purchase of an automatic insertion machine. It has…
A: Average rate of return : Average rate of return calculate the rate at which Average income is…
Q: Information on Cloudy's past operations follows: Installment sales Cost of sales Gross profit rate…
A: ANSWER:- 15) Total realised gross profit in 20X3 = 94,500 (option D) 16) (Loss)/ Gain on Reposession…
Q: ) Larry wins $80,000 in the lottery. He invests the total amount in a GIC that earns him interest of…
A:
Q: Lenlen Corporation produces a product through a continuous process in two departments. Materials in…
A: As per Bartleby's guidelines, if multiple questions are asked under a single question then only the…
Q: Questions 9 through 12 are based on the following information: On January 1, 2021, Bida-bida Corp.…
A: Lets understand the basics. Impairement is happen when carrying value of asset is less than…
Q: The standard cost of product B manufactured by Coronado Company includes 3 units of direct materials…
A: Material price variance is computed when material is purchased. Material price variance is…
Q: What is Xi's net cash inflow for March? 1. Prepare a cash flow statement 2. Calculate the cash…
A: Cash flow budget is an estimated statement of all cash receipts and all cash payments that are…
Q: Country Production of Laptops Production of Printers Boonton 300 750 Mistania 600 133 Currently,…
A: opportunity cost refers to the cost that is incurred on the next best alternative chosen or the…
Q: Sharp Screen Films, Incorporated, is developing its annual financial statements at December 31,…
A: The cash flow statement records the cash inflows and outflows for the current period. The various…
Q: Required information Skip to question [The following information applies to the questions…
A: Cost recovery is the process of deducting a portion of an item's cost over the course of its useful…
Q: Assume a company has two divisions, Division A and Division B. Division A has provided the following…
A: Transfer price means the price charged by one department from other department of the same company…
Q: Find the Number of days sales in inventory 2. Find the Return on total Assets
A: NUMBER OF DAYS SALES IN INVENTORY Number of days sales in inventory is the average number of days…
Q: The potential investment's profitability index is
A: Profitability index is an important capital budgeting tool and metric. This tool/metric is based on…
Q: What is the first step in adding a social CRM strategy in your marketing mix? Find a social CRM…
A: Social customer relationship management refers to a relationship with connecting customer via social…
Q: accounting systems and the role of technology in modern-day accounting
A: Answer:- Accounting meaning:- Accounting is basically the process of gathering, analyzing and…
Q: Rich Ltd. declares a 3 for 1 stock split on its class A common shares. There are 12,000,000 shares…
A: The stock split is a method of increasing the number of outstanding shares by decreasing the value…
Q: Information from the records of Conundrum Company for September was as follows: Sales $307,500…
A: Solution... Total product cost = Direct Material used + Direct labor + overhead (variable +…
Q: Differentiate between a spot rate and forward rate
A: In the financial and commodities markets, the term "spot rate" refers to the current price at which…
Q: On April 1, 2021, Chase Supply purchased Sparky Electric Co. for $225,000 Sparky Electric Company's…
A:
Q: Mr. Stanhope has an MBA degree from Stanford University and has successfully operated a business for…
A: Taxation seems to be the method of acquiring taxes from individuals in exchange for the usage of…
Q: Aloha Co. received the following note: Face amount P 1,000,000…
A: When we receive lump sum amount after some years, we used to record income on year basis. To record…
Q: Maryland Novelties Company produces and sells souvenir products. Monthly income statements for two…
A: Variable Cost :— It is the cost that changes with change in units. Variable cost per unit is…
Q: Prepare the December 31 entry for Pronghorn Corporation to record amortization of intangibles. The…
A: Amortization is the expense which is written in the imcome statement as the decrease in the value of…
Q: A and B (AB partnership) decide to form a partnership. A already has a business in operation and he…
A: The partnership comes into existence when two or more persons agree to do the business and further…
Q: The amount of consideration to which the entity expects to be entitled in exchange for transferring…
A: As per IAS 115 Revenue recognition A performance obligation is an promise to customer to transfer…
Q: nnual income.
A: Answer : Average rate of return = Average annual income / Average investment Average rate of return…
Q: Larson Stores owns a small retail outlet in a California coastal town. In the last few years, a…
A: Recoverable cost of the asset is the higher of value in use and fair value less cost to disposal.
Q: R. Kudemus Co. and R. Ballgala Co. were competitors and both engaged in buying and selling of almost…
A: Lets understand the basics. Working capital is a capital required to run day to day business…
Q: If services totaling P12,500 had been performed but not yet billed, what would the adjusting entry…
A: Adjusted entry for services totaling P12,500 had been performed and not yet billed .…
Q: The data for an investment center is as follows: Current Assets Plant Assets January 1, 2022 $…
A: Current assets are assets in the form of cash or can be converted into cash within a year. Total…
Q: Frontier Rare Coins (FRC) was formed on January 1, 2024. Additional data for the year follow: i…
A: There are three statements of the organization which show different accounting financials. 1. Income…
Q: On March 12, Bill Jones accepted a $12,000 note in granting a time extension of a bill for goods…
A: Answer Correct option is = 2 nd option = $12163 Explanation : Maturity value on notes =…
Q: Metlock Company began operations in 2019 and determined its ending inventory at cost and at…
A: ACCOUNTING STANDARDS - 2 Objective of this standard is to formulate the method of computation of…
Q: The end of Year 1, Carrot Company revised the pension benefit formula for its defined benefit pers…
A: The following will be included in the journal entry to record the change to the pension is: Debit to…
Q: The balance sheet for Quinn Corporation is shown here in market value terms. There are 28,000 shares…
A: A share repurchase, also known as a stock buyback, enables a company to invest in itself. The…
Q: Craig Hammer purchased a new condominium for $225,000. The bank required a $30,000 down payment.…
A: Total Present Value = $225,000 Down payment = $30,000 Present Value of Loan = $195,000 Annual…
Q: Question 1 The following costs were extracted from Red's company book at the end of December 2014…
A: Administrative cost indicates the expense being incurred by the business entity in the operation of…
Q: During the year ended December 31, 2021, and in the following months of January and February 2022,…
A: The journal entries for the above transaction are as follows:
Q: The revenue agent who audited Ms. Hsui's Form 1040 discovered a $15,250 deduction that wasn't…
A: Tax avoidance is the process through which taxpayers lower their taxable income by using legal and…
Q: The following issues relate to clients of the firm of accountants you work for. Each company has a…
A: Plant and machinery is recorded at Carrying Amount or Realisable Value,whichever is less as per IAS…
Q: Ms. Schmidt didn't request an extension of time to file a 2021 income tax return and didn't mail the…
A: Introduction A user should make out and file an Income Tax Returns to the Indian Tax Authority. It…
Q: Dunbrook Travel, Inc. acquired an 80% interest in Ocean Cruises on December 31 for $970,000.…
A: In relation to its investment, return on investment is a proportion of net income. It is a…
Step by step
Solved in 3 steps
- On May 16, 2019, an entity purchased a fire insurance policy covering a property for a period of 2 years. The P16,800 cost of policy was paid in cash. At the end of 2019, the company will reduce Prepaid Insurance for this policy by? a. P5,600 b.P5,650 c. P5,250 d. P8,400On January 1, 2021, Robin Cormpany received a grant of P1,500,000 frorm the government to subsidize tuition fees for a period of 5 years. On January 1, 2023, the entity violated certain conditions attached to the grant, and therefore had to repay such grant to the government. What amount should be recognized as loss resulting from the repayment of the grant in 2023?Sunland Company self-insures its property for fire and storm damage. If the company were to obtain insurance on the property, it would cost them $1970000 per year. The company estimates that on average it will incur losses of $1610000 per year. During 2021, $705000 worth of losses were sustained. How much total expense and/or loss should be recognized by Sunland Company for 2021?
- On January 1, 2021, the Montgomery Company agreed to purchase a building by making six payments. The first three are to be $25,000 each, and will be paid on December 31, 2021, 2022, and 2023. The last three are to be $40,000 each and will be paid on December 31, 2024, 2025, and 2026. Montgomery borrowed other money at a 10% annual rate.Required:1. At what amount should Montgomery record the note payable and corresponding cost of the building on January 1, 2021?2. How much interest expense on this note will Montgomery recognize in 2021?jordan purchased a $20,000 piece of office furniture during 2019. The balance inhis UCC pool for furniture at the end of 2018 year was $60,000 and is amortized atthe declining balance rate of 20%. If jordan's CCA is $18,000, what is the endingUCC for 2019?The premium on a four-year insurance policy expiring on december 31, 2034 was paid in total on January 1, 2021. If the original payment was recorded as a prepaid asset, the balance in prepaid asset on December 31, 2022 would be a. lower than the balance on december 31, 2021b. lower than the balance on december 31, 2023c. the same as the balance on december 31, 2023d. the same as the original payment DISCUSS
- 13.Papa, Inc. has a life insurance policy with its president as insured. Papa is the beneficiary of said policy. The annual premium is $ 5,000. As of December 31, 2020, the redeemable value of the policy cash (cash surrender value) is $ 18,200 (final balance). The insurance expense recognized in the Statement of Income and Expenses for the period ended December 31, 2020 was $ 4,000. What was the cash surrender value of this policy on January 1, 2020 (opening balance)? Select one: a. $ 11,200. b. $ 14,200. c. $ 17,200. d. $ 9,200.5) During 2019 you have net employment income of $40,000, a net property loss of $16,000, interest income of $6,000, and income from royalties of $7,000. The royalties were on a book you wrote. You do not have Unused RRSP Deduction Room from previous years. Your employer contributed $3,000 to your RPP. Your maximum deductible Registered Retirement Savings Plan contribution for 2020 is: A) $3,660. B) $1,320. C) $5,580. D) $2,580.The Revenue Account of a life insurance company shows the life assurance fund on 31st March, 2020 at $5,000,000 before taking into account the following items: -Claims covered under re-insurance $12,000.- Bonus utilized in reduction of life insurance premium $4,500. -Interest accrued on securities $8,000.-Outstanding premium $5,000-Claims intimated but not admitted ` $26,000. What is the life assurance fund after taking into account the above omissions?
- What is the loss on repayment of the grant on January 1, 2022? What is the depreciation of the equipment for the year 2020?For 2019 and 2020, what is the ceiling for a person under the age of 70 and 1/2 to contribute to an Individual Retirement Account? a. $6,000 (or the $12,00 for spousal IRAs) or 100% of compensation. b. $1,000 annually. c. $3,000 annually. d. all of the above.K During 2021, Ming's Book Store paid $486,000 for land and built a store in Naperville, Illinois. Prior to construction, the city of Naperville charged Ming's $1,000 for a building permit, which Ming's paid. Ming's also paid $15,000 for architect's fees. The construction cost of $670,000 was financed by a long-term note payable, with interest costs of $28,020 paid at the completion of the project. The building was completed June 30, 2021. Ming's depreciates the building using the straight-line method over 35 years, with estimated residual value of $330,000. Read the requirements. c. Joumalize depreciation on the building for 2021. Journal Entry Date Accounts Depreciation Expense-Building Accumulated Depreciation Building Balance Sheet Plant assets: Debit Less: 5,486 Credit 5,486 Requirement 2. Report Ming's plant assets on the company's balance sheet at December 31, 2021. *** Check answer ot MO ot MO ot MO ot MO