Cranberry Company purchased two pieces of equipment from a Canadian vendor for $400,000. If the assets had been purchased separately, the company would have paid $90,000 for the first piece of equipment and $360,000 for the second piece of equipment. What amount should be recorded for the first piece of equipment?
Q: d) Debt to Equity Ratio e) Proprietary Ratio
A: The proprietary ratio is the ratio which is used by the business in order to know about the…
Q: 5 The following is a list of assets and claims of a manufacturing business at a particular point in…
A: The balance shet will be prepared as follows: Balance sheet: Particulars Amount Assets:…
Q: Selected financial information for ADAM Corporation is reproduced below: 1. NOA turnover (average…
A: Requirement a: Return on net operating assets (RNOA) = NOA turnover * NOPAT margin = 3*7% = 21%…
Q: This problem is a continuation of the problem in Section 11.5 of the chapter. In the chapter, the…
A: Consolidation - When an asset oscillates between a well-defined pattern of trading levels, it is…
Q: Calculate the fair value of the bonds at the time of issuance. b. Prepare a discount/premium…
A: There are multiple sub-parts in the question but as per our protocol we are authorized to solve only…
Q: Delta Motors Corporation has 2,000,000 authorized shares of $10 par value common stock. As of June…
A: Any person, organisation, or company that holds stock in a particular company is regarded as a…
Q: EXERCISES ON ADJUSTED FINANCIAL STATEMENT 1. The following trial balance was extracted from the…
A: The question asked to prepare the statement of comprehensive income, and the statement of financial…
Q: the company buys the part it will still have to pay $1.50 per unit for the fixed manufacturing…
A: The differential analysis is a way to compare the different alternatives such as to make or buy a…
Q: a) Current Ratio b) Quick Ratio c) Inventory to Working Capital
A: Formula 1. Current ratio= Current assets÷ Current liabilities 2. Quick Ratio= Quick asset ÷Current…
Q: w.15. Transactions for July, 2022 Batch 1 July 2 Purchased $2,000 of Inventory on account, terms…
A: The journal entry can be defined the very first step where the transaction of the entity are…
Q: From the following information of Axis Limited compute the Replacement Cost Value / Net Substantial…
A: Replacement cost or replacement value refers to the price that it would cost to replace an existing…
Q: 2021 Dec 31 Recorded Bad Debt Expense of $15,500 2022 Apr 1 Wrote off J.Salazar account of $3500 as…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: Explain the particular issues relating to controls which would affect the audit of a small company…
A: 1. Scope Limitations: Small companies, such as Bebe Company, often lack the resources to implement…
Q: The after-closing trial balances of the Brenda, Peter, and Timothy partnership at December 31, 2020…
A: A partnership is a business arrangement where two or more people work together to achieve a common…
Q: The company had credit sales of $100,000 for the calendrer period 2021. Accounts receivable at the…
A: Allowance for doubtful debts: It is an allowance maintained by a company to adjust the amount of…
Q: On January 5, 2019, our company receives a nonbinding purchase order for sale of merchandise to a…
A: Introduction A company's financial statements can contain information about a transaction by…
Q: Journal: Cash (Asset) + Customer Receivables (Asset) + Sales (Revenue) = $500 Supplies (Asset) +…
A: First, let's prepare the T-accounts: Assets: Cash: 500 - 800 + 1,500 - 500 - 200 = 700 Customer…
Q: Dillon Products manufactures various machined parts to customer specifications. The company uses a…
A: Job Order costing is a method of costing which is used in industries where customized products are…
Q: Spock Ltd uses a job costing system. Un I had a balance of $8 600, made up as follows: Job No. 501…
A: Job costing seems to be the technique of determining the overall cost of completing a job in…
Q: In October, Nicole of Nicole's Getaway Spa (NGS) eliminated all existing inventory of cosmetic…
A: Cost of Goods Sold The amount that is incurred by a company on the manufacturing of a product is…
Q: Predetermined Factory Overhead Rate Exotic Engine Shop uses a job order cost system to determine the…
A: Given, Exotic Engine Shop Engine parts = $1,287,800Shop direct labor = $940,000Shop and repair…
Q: The LoLev Corporation's equity has a beta of 1.4. Its debt has a beta of 0.2. Its debt-to-value…
A: This problem involves calculating the discount rate and equity beta of a corporation using the…
Q: investment
A: In accounting terms, impairment is essentially a permanent decrease in the value of an asset. It may…
Q: Give one word or a term used to describe the following: a) An allowance by a creditor to debtor for…
A: Answer:- Creditor meaning:- A creditor is a person or organization that offers another party credit…
Q: Question. At April 30, Kessler Company has the following bank information: Cash balance per bank…
A: INTRODUCTION: The accounting technique known as the "adjusted balance method" bases finance charges…
Q: You are considering two investment options. In option A, you have to invest RM2000 now and RM1000…
A: There are multiple methods used for analysis and evaluation of capital investment projects. Some of…
Q: On December 31, 2022, the cash account of AA Company shows the following composition: Petty cash…
A: Cash and cash equivalents include all liquid assets. It does not include investments with a lock-in…
Q: 4. Can Division of FP Inc. makes and sells tin cans externally for $0.60 per can. Its unit variable…
A: INTRODUCTION: A variable cost is one that fluctuates in accordance with either the volume of output…
Q: 1. Norfolk has prepared a Report of Condition for the FDIC. Please fill in the missing items from…
A: Introduction The value of all a person or corporation has is represented by their total assets,…
Q: accounting standerds
A: Accounting standards are standards for financial reporting. They’re the primary source of accounting…
Q: The received side of the Stores Ledger Account shows the following Jan. 1 Opening Balance: 500 units…
A: A stores ledger is a manual or computer record of the raw materials and production supplies stored…
Q: Marty (62), single, has 2022 taxable income of $510,000.
A: Marginal tax rate is tax rate is the highest percentage of income tax paid by the individual on the…
Q: Greflow Communications Ltd manufactures component parts for cellular telephones. The business was…
A: "Since you have posted a question with multiple subparts, we will solve the first three subparts for…
Q: An entity purchased an office building with a useful life of 50 years for GHC5.5 million on 1…
A: Treatment of Own building as an Investment Property. The Investment properties are asset held in the…
Q: Question 7 Using Bill Pay powered by Melio, what are 3 ways to fund payments to vendors? ACH bank…
A: Bill pay powered by melio is an integrated payment solution which is available free for users to…
Q: *E5.20 (LO 7) This information relates to Olaf Decor. 1. On April 5, purchased merchandise on…
A: A journal entry is an act of recording any transaction, whether or not it is an economic one. An…
Q: Average Rate of Return Determine the average rate of return for a project that is estimated to yield…
A: The average rate of return is the average annual amount of cash flow generated over the life of an…
Q: Lean Accounting Vintage Audio Inc. manufactures audio speakers. Each speaker requires $111 per unit…
A: Manufacturing Cost :— It is the total cost incurred in the manufacturing of product during the…
Q: X, Y and Z were partners sharing profits in the proportion of 3:2:1. Y Retires
A: When one or more partner decides to retire from the partnership, he will no longer be able to enjoy…
Q: On January 1, Twilight Manufacturing issued $325,000 of 6%, 3-year bonds when the market rate of…
A: In a table known as a bond amortization schedule, the sum of interest paid, interest accrued, and…
Q: From the following particulars prepare the Proprietor's Capital Account: 2015 April 1 June 17 July…
A: Capital account can be regarded as one of the primary components of the balance of payments of a…
Q: Albert takes a loan out to buy a second-hand car. The loan is for £1,500. The interest rate on the…
A: Time Value of Money :— According to this concept, value of money in present day is greater than the…
Q: Dexcon Technologies, Inc., is evaluating two alternatives to produce its new plastic filament with…
A: The company may require to evaluate which alternative I beneficial to the company and has low costs.…
Q: Bonita Co. reported $150,000 of net income for 2020. The accountant, in preparing the statement of…
A: Cash flow from operating activities refers to a company's earnings from ongoing, regular business…
Q: Financial Statements of a Manufacturing Firm The following events took place for Focault Inc. during…
A: An income statement charts a company's sales, costs, and profitability over time. It is also…
Q: ABC Institute has the following selected information for the taxable year 2021: Tuition fees…
A: A non-stock, non-profit educational institution is a type of organization that provides educational…
Q: The ledger of INDENTATION CUT Co. in 20x1 includes the following: Share capital Share premium…
A: Shareholders equity statement is very important part of balance sheet and it belongs to the wealth…
Q: Suggest an appropriate ‘Activity Level’ for the following budgets: (a) Manufacturing…
A: In the process of preparation of budget, the activity level for each type of budget must be…
Q: Compute funds from operations.
A: Funds from operations (FFO) is a metric used to measure a company's recurring operating earnings.…
Q: Manny is a sole proprietor engaged in distribution of various consumer products. During 2020, he…
A: Documentary stamp tax is a tax imposed on capital gain tax on the transfer of assets. Generally, it…
Step by step
Solved in 2 steps
- Buchanan Imports purchased McLaren Corporation for $5,000,000 cash when McLaren had net assets worth $4,500,000. A. What is the amount of goodwill in this transaction? B. What is Buchanans journal entry to record the purchase of McLaren? C. What journal entry should Buchanan write when the company internally generates additional goodwill in the year following the purchase of McLaren?LOQUACIOUS TALKATIVE Co. acquired a piece of factory equipment overseas on a cash basis for ₱400,000. Additional costs incurred include the following: commission paid to a broker for the purchase of the equipment, ₱20,000; import duties of ₱100,000; non-refundable purchase taxes of₱40,000; freight cost of transferring the equipment to LOQUACIOUS’ premises, ₱4,000; costs of assembling and installing the equipment, ₱8,000; costs of testing the equipment, ₱6,000; administration and other general overhead costs, ₱16,800; and advertisement and promotion costs of the new product to be produced by the equipment, ₱15,200. The samples generated from testing the equipment were sold at ₱2,000. How much is the initial cost of the equipment?Tainan company decides to exchange its old machine and $2,600,000 cash for a new machine. The old machine has a book value of $1,400,000 and a fair value of $2,400,000 on the date of the exchange. If this transaction has commercial substance, the cost of the new machine would be recorded at
- Suppose that fabulous had purchased trucks for $400,000 which were used solely in the transportation of inventory purchased in different parts of the united states to U.S. customers. all transportation expenses, including depreciation deductions of $200,000 in respect of the trucks, were applied to reduce U.S.-source income. Fabulous then resells the used trucks for $410,000, thereby realizing income of $210,000, to a foreign purchaser that took title to the trucks in Peru. What is the source of the income realized on the sale of the trucks?(i)Harris Ltd. exchanged a parcel of land with a carrying value of $15 million and fair value of $20 million, for some highly specialized machinery from Biden Corp. In addition, Harris Ltd. also paid $5 million along with the land in a transaction holding commercial substance to obtain the machinery. Required:What will be the cost of the specialized machinery in the financial statements of Harris Ltd.?(ii)Harris Ltd also recently imported an artificial intelligent machinery and incurred the following costs: $List price (trade discount 12.5% on list price) 480,000Haulage costs 5,500Pre-production testing of machinery 25,000Repair & maintenance contract for three years 48,000Running of electrical cable for…Harris Ltd. exchanged a parcel of land with a carrying value of $15 million and fair value of $20 million, for some highly specialized machinery from Biden Corp. In addition, Harris Ltd. also paid $5 million along with the land in a transaction holding commercial substance to obtain the machinery. Required: What will be the cost of the specialized machinery in the financial statements of Harris Ltd.?
- In October, Dean Company exchanged an old packing machine costing P240,000 and 50% depreciated, for a dissimilar used machine and paid a cash difference of P32,000. The market value of the old packaging machine was determined to be P140,000. How much is the cost of the newly acquired machine and the amount of gain or loss, respectively, that Dean should record on this exchange?Llungby AB spent 1,000,000 krone in 2017 on the development of a new product. The company determined that 25 percent of this amount was incurred after the criteria in IAS 36 for capitalization as an intangible asset had been met. The newly developed product is brought to market in January 2018 and is expected to generate sales revenue for five years. Assume that a foreign company using IFRS is owned by a company using U.S. GAAP. Thus, IFRS balances must be converted to U.S. GAAP to prepare consolidated financial statements. Ignore income taxes. Required: Prepare journal entries for development costs for the years ending December 31, 2017, and December 31, 2018, under (1) IFRS and (2) U.S. GAAP. Prepare the entry(ies) that the U.S. parent would make on the December 31, 2017, and December 31, 2018, conversion worksheets to convert IFRS balances to U.S. GAAP.Buchanan Imports purchased McLaren Corporation for $5,000,000 cash when McLaren had net assets worth $4,500,000. What is the amount of goodwill in this transaction? What is Buchanan’s journal entry to record the purchase of McLaren? What journal entry should Buchanan write when the company internally generates additional goodwill in the year following the purchase of McLaren?
- Information Processing, Inc. (IPI) exchanges its used machine for a new machine with Jerrod Business Solutions Inc. The exchange has commercial substance. IPI’s used machine has a book value of $8,000 (original cost $12,000 less $4,000 accumulated depreciation) and a fair value of $6,000. The new machine has a fair value of $16,000. IPI also pays Jerrod Business Solutions $7,000 cash in the transaction. Accounting Issue(s): What is the correct amount that IPI should record for the machine it acquired in the exchange with Jerrod Business Solutions? Question 1: What is the correct amount that IPI should record for the machine it acquired in the exchange with Jerrod Business Solutions? $6,000 $7,000 $8,000 $13,000 $15,000 $16,000XYZ Company exchanges the rights to distribute a product in Brisbane which have a carrying amount of P2,000,000, for cash of P1,000,000 and the rights to distribute the same product in Canberra, with a fair value of P1,400,000. The exchange is considered having the necessary commercial substance. At the time of exchange, the intangible asset should be initially recorded by XYZ Company at:Tainan company decides to exchange its old machine and $2,600,000 cash for a new machine. The old machine has a book value of $1,400,000 and a fair value of $2,400,000 on the date of the exchange. If this transaction has commercial substance, the cost of the new machine would be recorded at a.$5,000,000. b.$4,000,000. c.$2,600,000. d.cannot be determined.