Grand Ltd. is a Canadian company that had the following transactions in 20X7: a. Sold goods to a customer in Belgium on 25 November for 265.000 euros. b. Sold goods to a U.S. customer on 25 November for US$89,000. c. Sold goods on 1 December, to a British customer for 185,000 euros. d. On 15 December, the customer in transaction (a) paid. At year-end, the other two accounts receivable were still outstanding.
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- The following are the transactions of a joint operation formed by A, B and C during a year: A contributed cash of P400 and merchandise costing P800. B contributed merchandise costing P1,600. Freight-in paid by B is P80. C made purchases amounting to P400 using the cash contributed by A. C paid expenses of P800 using its own cash. C made total sales of P3,200. All the merchandise was sold except one-half of those contributed by B. C is appointed as the manager of the joint operation. As compensation, C is entitled to a P120 salary plus bonus of 25% on profit after salary and bonus. Interest of 10% per annum is allowed to A and B's capital contributions. C is charged for the cost of any unsold inventory. Profit or loss after necessary adjustments shall be divided equally. How much is the profit or loss after salaries but before bonus of the joint operation?On November 15, 20x1, Lemon Co. ordered merchandise, on an FOB Shipping point term, from a foreign entity for 200,000 marks. The merchadise was shipped and invoiced to Lemon on December 10,20x1. Lemon paid the invoice on January 10, 20x2. The spot rates are as follows: Nov 15, 20x1 22.4955 December 10, 20x1 22.4875 December 31, 20x1 22.4675 January 10, 20x2 22.4475 Requirement: Provide the journal entries in 20x1 and 20x2.The following are the transactions of a joint operation formed by A, B and C during a year: A contributed cash of P400 and merchandise costing P800. B contributed merchandise costing P1,600. Freight-in paid by B is P80. C made purchases amounting to P400 using the cash contributed by A. C paid expenses of P800 using its own cash. C made total sales of P3,200. All the merchandise was sold except one-half of those contributed by B. C is appointed as the manager of the joint operation. As cornpensation, C is entitled to a P120 salary plus bonus of 25% on profit after salary and bonus. Interest of 10% per annum is allowed to A and B's capital contributions. C is charged for the cost of any unsold inventory. Profit or loss after necessary adjustments shall be divided equally. How much is the profit or loss after salaries but before bonus of the joint operation?
- Nestlé, a Switzerland-based company, uses a sales journal, purchases journal, cash receipts journal, cash payments journal, and general journal in a manner similar to that explained in this chapter. Journalize the following Nestlé transactions that should be recorded in the general journal. For those not recorded in the general journal, identify only the special journal where each should be recorded. (All amounts in millions of Swiss franc, CHF.) 1. Assume Nestlé purchased CHF 17,000 of merchandise on credit from suppliers. 2. Assume Nestlé sold CHF 94,000 of merchandise (cost is CHF 42,300) on credit to customers. 3. Assume a key customer returned CHF 2,400 of (worthless) merchandise to Nestlé (assume the cost of this merchandise is left in cost of goods sold).On October 1, Year 7 Durian Co. of Quebec, ordered merchandise from MAGA Co. of US. The purchase price was determined to be $500,000 US. The merchandise was to be delivered on February 28th, Year 8 with payment due on delivery. On October 1, Year 7 Durian arranged a forward contract to purchase $500,000 US on February 28th, Year 8 at a rate of US 1 = $1.31. The merchandise was delivered on February 28th, Year 8, Durian purchased the US dollars from the bank and paid MAGA Co. Durian’s year-end is December 31st. Date Spot rate Forward rate October 1, Year 7 US 1 = $1.23 US 1 = $1.31 December 31, Year 7 US 1 = $1.21 US 1 = $1.33 February 28, Year 8 US 1 = $1.28 US 1 = $1.28 Required Assume the forward contract is designated as i) FV hedge ii) Cash Flow hedge iii) No hedge Prepare all JEsCASE 1. The Philippine corporation purchased merchandise from a US firm for USD$15,000 on November 1, 2021. Also on the same date the Philippine corporation sold merchandise to a US firm for USD$30,000. The following rates were available: Buying Rate Selling Rate November 1, 2021 US$1 = P46.00 P1 = $.021505 December 31, 2021 US$1 = P45.80 P1 = $.021277 January 31, 2022 US$1 = P46.20 P1 = $.022222 What is the amount of sales revenue recognized for the year end 2021?1,380,0001,395,0001,374,0001,410,000 2. What is the carrying amount of the accounts receivable on December 31, 2021? 1,410,000 1,374,000 1,386,000 1,350,000 3. What is the carrying amount of the accounts payable on December 31, 2021? 687,000 705,000 693,000 675,000 4. What is the total/net foreign currency gain/(loss) for the year 2021? 12,000 gain 12,000 loss 13,500 gain 13,500 loss
- Here is the following revenue recognition situation.a. Wage Inc. sells goods to Rajab Corp for $850,000, payment due at delivery.b. Wage Inc. sells goods on account to Suro Corp for $1,050,000, payment due in 30 days.c. Wage Inc. sells goods to Syawal Corp for $480,000, payment due on two installments. Thefirst installment payable in 14 months, and the second payment due 4 months later. Thepresent value of the future payment is $445,000.Instructions:Indicate the transaction price for each of these situations and when revenue will be recognized.Beta Company has incurred the following costs during the current year: Cost of purchases based on vendor's invoices.. Trade discounts on purchases already deducted from the vendor's invoices. • Importation duties and taxes.. • Freight and insurance on purchases. • Other handling costs relating to imports. Salaries of accounting department. • Fees paid to customs broker who processed the importation documents.. • Sales commission paid to sales agents. P 5,000,000 500,000 400,000 1,000,000 100,000 600,000 200,000 300,000 After-sales warranty costs. What is the total cost of purchases? 250,000 A. P5,700,000 В. Р6,100,000 С. Р6,700,000 D. P6,500,000BC Corp. reported a P500,000 account receivable balance at the beginning of the calendar year. For the year, it reported net credit sales of P4,000,000 and collections from customers of P4,050,000. An analysis of the sales showed that a sale amounting to P40,000 was shipped to the buyer on Dec. 31 under FOB destination term while a sale amounting to P50,000 was shipped to the buyer on Jan. 1 under FOB shipping point term. Included in the collections was an over-payment by a customer in the amount of P13,000. Not included in the initial sales and collections amounts are the following:(A) Sales made to officers made under customary terms, P200,000 of which were collected – P700,000 and(B) Claims against common carrier – P 200,000. How much should ABC report as accounts receivables as of Dec. 31?
- On November 15 20x1,. Lemon co. ordered merchandise, on an FOB shiping point term, from a foreign entity for 200,000 marks. The merchandise was shipped and invoiced to Lemon on December 10 20x1. Lemon paid the invoice on January 10, 20x2. The spot rates are as follows: Nov. 15, 20x1 P22.4955 December 10, 20x1 P22.4875 December 31, 20x1 P22.4675 January 10, 20x2 P22.4475 Requirement: Provide the journal entries in 20x1 and 20x2Jonel Corporation operates a branch in Cebu. In October, the HO shipped P 68,000 merchandise to this branch, which the branch credited the HO account for P 86,000. In November, the branch collected P2,000 HO accounts receivable. The HO was properly notified but debited Investment in Branch account for P 8,000. At the end of the year, the HO paid and recorded a P 12,000 expense for the branch but the branch has not yet made the appropriate entry for this. At year-end, the branch transferred P 50,000 cash to HO but the HO has not yet made the necessary entry. Based on the above, the corrections needed are a. HO to credit its Investment in Branch account for P 48,000, and the Branch to debit the HO account for P 18,000. b. HO to credit its Investment in Branch account for P 60,000 and the Branch to debit the HO account for P6,000 c. HO to credit its Investment in Branch account for P 56,000 and the Branch to debit the HO account for P 6,000. d. HO to credit its Investment in Branch…B. Co an importer of merchandise for local sales had the following data on the importation: P2, 000,000 20, 000 30, 000 180, 000 40, 000 20, 000 Invoice cost Freight Insurance Customs duty Customs brokerage fees Processing fee Excise tax and other legitimate expenses of importation prior to removal from customs custody The customs duty was based on a dutiable value of the Importation (as determined by the Bureau of customs) of 90, 000 1, 800, 000 How much was the tax base of the value-added tax? How much was the value-added tax on importation?