Company showed equipment with an original cost pf P379,000 and P344,000 with accumulated depreciation of P153,000 and P128,000, respectively. During 2021, the company purchased equipment costing P50,000 and sold equipment with a book value of P9,000

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A: The question is based on the concept of Cash flow statement.Statement of cash flows :It is the…

Q: At what amount should the equipment be measured on December 31, 2021? * 2. Beauty Company accounted…

A: Non-Current Asset held for sale: If the majority of the carrying value of a non-current asset is…

Q: The following data relate to store equipment of Blue Company: Dec. 31,2020 Store equipment…

A: Depreciation Expenses - Depreciation Expenses are the expense incurred on the wear and tear of the…

Q: Current Attempt in Progress Sheridan Inc. reported the following for 2023: Sales Revenue Cost of…

A: The comprehensive income statement is a combined financial statement that indicates standard income…

Q: On June 1, 2021, Startlet Company approved a plan to dispose of a business segment. It is expected…

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Q: P400,000 Year Purchased Useful life Salvage value Depreciation method 2014 2015 2016 2018 10 years…

A: Carrying value refers to the concept which determines the value of an asset after subtracting…

Q: of P2,000,000 on Ju

A: Step 1 The total amount of expense that should be reported in the interim income statement ended on…

Q: Fogg Corporation's comparative balance sheet at December 31, 2020 and 2019 reported accumulated…

A: Depreciation: Depreciation refers to the reduction in the monetary value of a fixed asset due to its…

Q: PivotalFlow Bhd is in the midst of preparing its financial statements for the year ending 31…

A: Instead of converting the operating segment from accrual to cash accounting, the statement of cash…

Q: Sumit Ltd reported the following assets in its statement of financial position at 30 June 2021:…

A: Impairment Loss- The impairment loss is calculated when the asset's carrying value exceeds its…

Q: December 2022 Fraser Ltd's statement of financial positi motor vehicles at a cost price of $400 000…

A: Introduction:- An asset is impaired when its carrying amount exceeds its recoverable amount.  The…

Q: ABC Company is preparing its financial statements for the year ended December 31, 2023. During the…

A: In accounting, the treatment of costs as either capital expenditures (capitalization) or operating…

Q: At December 31, 2020, the following existed in the in the records of Lauren Company: Fixed assets –…

A: Depreciation represents the estimated fall in the value of the historical cost due to the normal…

Q: The 2021 footnote disclosures for W.B. Jones Heating & Air shows that it owns PP&E with accumulated…

A: The company can follow the historical cost method for reporting fixed assets, the property plant,…

Q: Prepare the following three-months (January to March 2021) budget as required by the bankers a) The…

A: Balance sheet: Balance Sheet is one of the financial statements that summarize the assets, the…

Q: 1, Net book value of the sold equipment 2. Depreciation expense for 2018 3. Purchase cost of the new…

A: Net book value of the equipment which has been sold by the entity during the period is the value of…

Q: am.106.

A: The objective of the question is to prepare journal entries for Sweet Acacia Limited to record asset…

Q: The following information is related to Vaughn Company for 2020. Retained earnings balance, January…

A: Multiple-step income statement: It is the more detailed statement for calculating the net income of…

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Q: The following information relates to Hardin Limited’s year-ended 31 December 2020:  The statement…

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Q: The T-accounts for Equipment and the related Accumulated Depreciation-Equipment for Sheffield…

A: Cash flow from the sale of Equipment is calculated by substructing the loss on sale from the Net…

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A: Cash proceeds from sale of equipment is the amount of cash received from equipment sold during the…

Q: The balance sheets of Tully Corp. showed the following at December 31, 2020, and 2019: December 31,…

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A: Formula to calculate cash flow from sale of equipment:

Q: Which of the following is correct regarding recording the sale? O The gain that should be recorded…

A: Introduction:- The following basic information as follows:- Sales Price = P 100,000 Carrying Amount…

Q: Oriole Company incurred the following infrequent losses during 2020: A $277000 write-down of…

A: Income statement: The financial statement which reports revenues and expenses from business…

Q: 9: $100,000 2020: $70,000 2021: $120,000 Company purchased assets costing $120,000 on January 1,…

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Q: The following is information for Novak Corp. for the year ended December 31, 2020: Sales revenue…

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Q: The balance sheets of HIROE Inc. showed the following at December 31, 2020 and 2019: December 31,…

A:

Q: The December 31, 2020 and 2019 comparative financial statements of ABC Company showed equipment with…

A: Cost of Equipment on December 31, 2019 P3,44,000 Add: Cost of equipment purchase during 2020…

Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.