For each of the following expenditures, indicate the type of account (asset or expense) in which the expenditure should be recorded.
Q: Veronica Mars, a recent graduate of Bell’s accounting program, evaluated the operating performance…
A: Elimination of Division: A division would be eliminated if it is continuously generating loss to the…
Q: Problem 12-23 (Algo) Prepare a contribution margin format income statement; calculate break-even…
A: 1. Some common point The income statement is prepared in two ways, one is under absorption costing…
Q: . A local partnership was in the process of liquidating and reported the following capital balances:…
A: Liquidation When a business is unable to pay off its debts and due obligations and the business came…
Q: 28. Venture investors' retums for the venture.
A: Venture capitalist offers to finance recognizing that the future profits and cash flow of the…
Q: A business user is analyzing most travelled flight routes in Mid-west area. He is coming up with the…
A: solution for above requirement are as follows
Q: Why do we need internal, external and government auditor in a company?
A: An audit is a way to evaluate the effectiveness of internal business controls and is a control…
Q: Kay Leni Tayo issue 50,000 of its P5 par value common stock for the net assets of AngatBuhay.…
A: Calculation of Fair Value of Identified Net Assets: Current Assets…
Q: Which among the sentences below is incorrect? A. An entity shall measure a current asset or…
A: Fair value A fair value means the actual price of an asset received if it is sold in the market. In…
Q: ecember 31, 20×1 had a Entity B's accounts payable on balance of P2,300,000 before any possible…
A: Accounts Payable The Maintence of Accounts payable is important for the business entity as well. It…
Q: Question 11: The taxable earnings threshold over which FUTA tax is not levied is: Answer: A. S7,000…
A: the taxable earnings threshold over which FUTA tax is not levied is $7,000.
Q: Based on the range of possible SUTA tax rates and thresholds, which of the following circumstances…
A: The State Unemployment Tax Act (SUTA) tax:- It is a type of payroll tax that all employers must pay…
Q: Development Limited uses the FIFO (first in, first out) method in its process costing system. The…
A: Solution a: Development Limited First Processing Department Computation of Equivalent unit…
Q: Share buybacks recorded with Treasury stock method never increase retained earnings or net income. O…
A: Treasury stocks are the stocks which have been repurchased by the company
Q: Question Two Apex Ltd manufactures three productsX, Y and Z in two product ion departments: Pi and…
A: Introduction Overhead absorption rate is the overhead rate charged to cost of units at a…
Q: Which of the following correctly describes defined benefit (DB) pension plans? A-A typical example…
A: Defined benifit is also written as DB. It is the pension plan in which the employee will receive the…
Q: Accounting 1. Illini leases another piece of equipment from Cubs Corporation under a four-year lease…
A:
Q: You are provided with the below table indicating the costs and the benefits for the system on 4…
A: system cost $ 50,000 Discount Factor 15% Year Operational Cost Annual Benefit 1…
Q: Entity B’s accounts payable on December 31, 20x1 had a balance of P2,300,000 before any possible…
A: Accounts Payable: Accounts payable is the amount recorded by a company in the books of accounts when…
Q: On August 1, Isada and Ureta pooled their assets to form a partnership , with the firm to take over…
A: Partnership Characteristics includes: Existence of an agreement Existence of business Sharing of…
Q: On January 1, 2021, Mojito Corporation purchased 25% (20,000 shares) of the outstanding stock of…
A: When a parent company holds 20-50% in another company then it is known as an associate company.
Q: X and Y agreed form a partnership. X is to contribute cash of 135,000 and Y is to contribute his…
A: As specified in the question, Y's share in the firm will be 55%. Therefore, X' share will be 45%…
Q: Discuss the limitations of cost volume profit analysis for planning and decision making.…
A: The question is related to the Cost Volume Profit Analysis. Cost-Volume-Profit (CVP) Analysis is an…
Q: pioye ecunty Answer: A. O is greater than the employee's Social Security ta 3. O is the same as the…
A: The federal unemployment tax act (FUTA) with state unemployment systems providers for payments of…
Q: If the volatility of Tesla is 2.74% per day, it will correspond to _____ per month.
A: Answer: B. 12.56%
Q: A company provides each of its directors with a car. It has purchased these at £35,000 each. After 4…
A: Depreciation is the amount of expense which shows the decrease in the value of asset over time by…
Q: 1.Tracey Sullivan begins business on May 1, 20-, with the following assets and liabilities: Cash, $5…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: Presented below is information for Sarasota Company. 1. Beginning-of-the-year Accounts Receivable…
A: Loss on factor = Finance charge + resource liability Where, Finance charge = accounts receivable…
Q: On a worksheet, the Income Statement debit column equals P798,000 and the credit column equals…
A: The worksheet is prepared in 10 columns to record Unadjusted Trial Balance, adjustment, adjusted…
Q: Mike and Jeff still run a law practice in French Polynesia as a general partnership with each…
A: Partnership means a group of persons who come together with a purpose to control and manage the…
Q: chouse distributes books to retail stores. The company purchases all merchandise inventory on credit…
A: Working: Calculation of purchase discount: = 2% × (6,500 - 400) = 122. Calculation of sales…
Q: In question 1 why were the 19,000 and 11,000 payables amount not recorded and why credit expense…
A: The given balances for sales commissions payable on 31st dec 2019 and 2020 are closing balances. So,…
Q: If then the project is economically justified.
A: If ERR is HIGHER, then the project is economically justified.
Q: Allen Inc. took out a 1-year, 8%, $100,000 loan on March 31, 2018. Interest is due upon maturity of…
A: Interest on loan payable is based on the loan amount, interest rate, and total duration of the loan…
Q: Reconstruct the company’s comparative balance sheet for 2020/2021 using the information and compute…
A: As per our protocol we provide solution to the one question only but as you have asked two questions…
Q: Marginal and Absorption costs are as follows: Marginal (£) Absorption (£) 3 Direct wages Direct…
A: The income statement is prepared to record the revenues and expenses of the current period. Using…
Q: 9. Statement 1 – In installment liquidation, cash priority program and schedule of safe payment…
A: Liquidation means where the business of firm is closed down , assets are sold out and liabilities…
Q: A borrower and lender agree on a negative-amortizing loan in the amount of $300,000 at 4% interest…
A: Interest When a cost is paid by the borrower to a lender for using the money, it is known as the…
Q: 1.Tracey Sullivan begins business on May 1, 20-, with the following assets and liabilities: Cash, $5…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: On January 2, 2019, Tweety Company purchased Sylvester Company at a cost that resulted in…
A: Goodwill: It is an intangible asset that arise from acquisition of one company by another. Excess…
Q: A local partnership was considering the possibility of liquidation since one of the partners (Ding)…
A: Partnership characteristics incudes: Existence of an agreement Existence of business Sharing of…
Q: Benson Corporation operates three investment centers. The following financial statements apply to…
A: Return on investment- Return on investment or return on costs is a proportion among net income and…
Q: Flowers Plc. owns a building that was acquired for £120, 000 on 1st July 2019. The year-end is on…
A: Formula: Straight line method depreciation: = ( Asset cost - salvage value ) / useful life
Q: Accounts receivable turnover and days’ sales in receivables For two recent years, Robinhood Company…
A: Accounts receivable turnover = Net Credit sales / Average account receivable Accounts receivable…
Q: Castillo, Labasan and Hollanes are partners with average capital balances during 2021 of P472,500,…
A: Answer - Computation of amount that Castillo’s and Hollanes capital account change -…
Q: For its first year of operations, Tringali Corporation's reconciliation of pretax accounting income…
A: Deferred tax liability means liability calculated by finding difference between the comapany taxable…
Q: Comment on whether the quality of the management accounting information you have described achieve…
A: The answers for the theory questions on management accounting information have been discussed…
Q: Rose Company had no short-term investments prior to this year. It had the following transactions…
A: Cost of the share is the price at which the shares are purchased. Fair value of the share is the…
Q: 2. The following are the accounts of Edlyn Nursing Clinic for December 31, 2019 Profe ssional Fees…
A: Income statement: Income statement is the financial statement which shows the financial performance…
Q: Make the T-Accounts of the following transaction: JOURNAL ENTRIES Date/# Account Title Debit Credit…
A: T-account means the ledger account in which the transaction related with one specified account is…
Q: A 5-year project will require an investment of $100 million. This comprises of plant and machinery…
A: Net Present Value- The net present value (NPV) is a method for determining the current worth of…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- During the year just ended, Morton Company made the following expenditures relating to its plant building: Continuing and frequent repairs P1,600,000 Repainted the plant building 400,000 Major improvements to the electrical wiring system 1,280,000 Partial replacement of roof tiles 560,000 How much should be charged to repair and maintenance expense during the year just ended?During the current year, Arkells Inc. made the following expenditures relating to plant machinery. Renovated seven machines for $250,000 to improve efficiency in production of their remaining useful life of eight years Low-cost repairs throughout the year totaled $79,000 Replaced a broken gear on a machine for $6,000 A. What amount should be expensed during the period? B. What amount should be capitalized during the period?For each of the following transactions, state whether the cost would be capitalized (C) or recorded as an expense (E). A. Purchased a machine, $100,000; gave long-term note B. Paid $600 for ordinary repairs C. Purchased a patent for $45,300 cash D. Paid $200,000 cash for addition to old building E. Paid $20,000 for monthly salaries F. Paid $250 for routine maintenance G. Paid $16,000 for major repairs
- Expenditures After Acquisition Listed below are several transactions: a. Paid $80 cash to replace a minor part of an air conditioning system. b. Paid $40,000 to fix structural damage to a building. c. Paid $8,000 for monthly salaries. d. Paid $12,000 to replace a manual cutting machine with a computer-controlled machine. e. Paid $1,000 related to the annual painting of a building. Required: Classify each transaction as either a revenue expenditure, a capital expenditure, or neither.The components of the cost of a major item of equipment are given below. GHS Purchaseprice 780,000 Import duties 117,000VAT (refundable) 78,000 Site preparation 30,000 Installation costs 28,000 Pre-production 18,000 Initial operating losses before the asset reaches planned performance…Lynda Inc. purchased a piece of equipment for $15,000. Additional costs include transportation, $300; installation, $700; test run, $1,000; and insurance from the date that the equipment begins productive output, $1,200. What is the capitalized amount of the equipment? $17,000 $18,200 $16,000 $15,000
- During the fiscal year, ABC Company incurred the following costs related to property, plant and equipment: Amount paid to the contractor for the building constructed 12,000,000Building permit fee 120,000Excavation cost 110,000Architect fee 440,000Interest that would have been earned had the money used during theperiod of construction been invested in the money market 330,000Invoice cost of machine acquired, terms 8/10, n/30 6,500,000Freight, unloading and delivery charges for machine acquired 100,000Custom duties and other charges 270,000Allowance and hotel accommodation, paid to foreign techniciansduring installation and test run of machine 520,000Royalty payment on machines purchased (based on units producedand sold) 240,000Cash paid for the purchase of land (none was allocated to oldbuilding) 10,000,000Mortgage assumed on the land purchased 2,000,000Realtor’s commission 650,000Legal fees, realty taxes and documentation expenses 900,000Amount paid to relocate persons squatting on the…The Flintstone Construction Company delivers dirt and stone from local quarries to its construction sites. A new truck that was purchased for a cost of $122,000 at the beginning of the year was expected to deliver 122,000 tons over its useful life. The following is a breakdown of the tons delivered during the year to each construction site: Construction Sites: Tons Delivered: Multiple Choice $12,767 $1,400 A 1,400 How much truck depreciation should be allocated to Site A? (Do not round intermediate calculations. Round your answer to the nearest dollar.) $1,220 B 2,900 None of the answers are correct. с 3,400 D 900The following annual costs are associated with three new extruder machines being considered for use in a Styrofoam cup plant: Data X-TRUD SUPR-X Useful Life, Years 11 |13 17 First Cost $2,790,000 $3,000,000 $2,980,000 Salvage Value $100,000 $81,000 $93,000 Annual Benefit $265,000 $692,000 $699,000 M&O $62,000 $60,000 $56,000 M&O Gradient $15,500 $10,500 $14,000 The company's interest rate (MARR) is 6%. Which extruder should the Styrofoam company choose? Use Annual Cash Flow Analysis and provide the right reason. Choosing SUPR-X is best because it has the highest Annual Benefit Choosing SUPR-X will maximize the EUAB-EAUC; its value is $41,738 higher than X and $15,242 higher than X-TRUD. Choosing SUPR-X is best because it has the lowest M&O cost in yr1 Choosing SUPR-X will maximize the EUAB-EAUC; its value is $481,738 higher than X and $26,242 higher than X-TRUD.
- The Flintstone Construction Company delivers dirt and stone from local quarries to its construction sites. A new truck that was purchased for a cost of $125,000 at the beginning of the year was expected to deliver 208,000 tons over its useful life. The following is a breakdown of the tons delivered during the year to each construction site: Construction Sites: Tons Delivered: Multiple Choice $20,246 $1,683 How much truck depreciation should be allocated to Site A? Note: Do not round Intermediate calculations. Round your answer to the nearest dollar. $1,250 2,800 None of the answers are correct. B 4,300 4,800 2,300$1,300 sq.f.t building costs $110 per sq.ft to build new. Depreciation is estimated to be 10%. The land is estimated at $40,000. What is the value estimated by the cost approach? a. $190,114 b. 211,326 c. 138,358 d. 109,119 e. 168,700The Flintstone Construction Company delivers dirt and stone from local quarries to its construction sites. A new truck that was purchased for a cost of $119,000 at the beginning of the year was expected to deliver 202,000 tons over its useful life. The following is a breakdown of the tons delivered during the year to each construction site: Construction Sites: Multiple Choice C $17,144 Tons Delivered: How much truck depreciation should be allocated to Site A? Note: Do not round Intermediate calculations. Round your answer to the nearest dollar. $1,296 $1,190 A 2,200 None of the answers are correct. B 3,700 C 4, 200 D 1,700
