In January, 2022, Harmony Inc. has the following expenditures related to manufacturing a new generation of its product. Match each expenditure to the appropriate accounting treatment on the right. Takes possession of a manufacturing machine. The vendor sends an invoice for $650,000. A. No accounting entry is necessary. B. Capitalize to a different asset account. C. Capitalize to the Machine account. D. Expense. Pays a machine import duty of $35,000 to the government. Pays employees $75,000 for research and development to finalize the new product design. v Receives an invoice for $4,250 from the company that shipped the machine. Pays employees $16,500 to install, customize, and test the new manufacturing machine. Pays $1,200 for a one-year insurance policy for the machine, with coverage beginning when the machine is placed into service on February 16.
Q: a. Determine Jane's total cash inflows and cash outflows. b. Determine the net cash flow for the mon...
A: Cash is an important current asset which stands with the financial position and provides liquidity m...
Q: Shown below are the unit information and a summary of the costs charged to a production department o...
A: To ascertain the costs of finished goods and ending work-in-progress, we need to calculate the equiv...
Q: Describe the components of the profit equation.
A: profit is such amount that business and after including all the expenses other cost that has been in...
Q: 41) After taking a look at your resulting financial statement below, how would you assess the overal...
A: The quick ratio is a liquidity ratio that determines the company's ability to pay off its current de...
Q: A3
A: Fundamental analysis (FA) seems to be a way of determining the intrinsic value of security by lookin...
Q: ed on giving them a significant cash bonus in the following month. The chief financial officer (CFO)...
A: The following are resons for the having high profit with insufficient cash 1) Credit sales: If credi...
Q: Using accrual accounting and the preceding values, show the firm's net proft for the past year in th...
A: Please See Step 2 for the Statement as required.
Q: The National Co. has a revolving line of credit of P300,000 with a one-year maturity. The terms call...
A: Annual cost of financing arrangement = Interest cost 7% on the average loan balance during the year ...
Q: National Co. needs to borrow P300,000 for the next 6 months. The company has a line of credit with a...
A: The company does not have sufficient compensating balance so it will have to borrow a sum greater th...
Q: You are buying a machine with a down payment of $200,000 and annual payments of $40,000 per year for...
A: The present value of all cost is the net cost of all cost including the down payment and all cost an...
Q: P company bought 60% of common stock of S company on January 1, 20x4. On January 1 20x5, there was a...
A: Net income is also referred to as net earnings. Net income means deducting all the expenses (Costs) ...
Q: Both Bond Sam and Bond Dave have 7.1 percent coupons, make semiannual payments, and are priced at pa...
A: Bond Valuation Bond valuation is important for the business entity which can be generate more liquid...
Q: Clara Company purchased equipment for P5,000,000 on January 1, 2021 with a useful life of 10 years a...
A: The fair value of a financial asset is established at the reclassification date when a company recla...
Q: . Identify the type of lease involved and give reasons for your classification. Discuss the accounti...
A: Cleveland Group leased a new crane to Abriendo Construction under a 5-year, non-cancelable contract ...
Q: Feather Friends, Incorporated, distributes a high-quality wooden birdhouse that sells for $20 per un...
A: Break even point = Fixed expenses / Contribution margin ratio where, Contribution margin ratio = Con...
Q: Revenues and operating (marketing and administrative) expenses for the year 2021 are P7,500,000 and ...
A: Explanation Retained Earning is the entire amount of profit of the company has leftover after paying...
Q: 7. Joshua Owen commenced business on 1 September, and had several special transactions during the mo...
A: The journal entries are prepared to keep the record of day to day transactions of the business.
Q: Flounder Corporation reports operating expenses of $90,100 excluding depreciation expense of $15,400...
A: Operating Expenses: Operating expenditures in company are expenses that are incurred on a day-to-day...
Q: A student borrowed P50,000 she he was freshmen in college to finance his education expenses. He is r...
A: Loan amount (PV) = P50,000 Interest rate (r) = 10% Period (n) = 5 Years
Q: What is the difference between the aggregate and entity theory of partnership taxation? Can you plea...
A: A partnership is a kind of business structure in which two or more people agree to carry out commerc...
Q: Chapter 11: Internal Control and COSO Framework During your audit of ABC Sports, Inc., a retail ch...
A: Internal control seems to be a method implemented by management and other staff to offer adequate co...
Q: Business combination achieved in stages 2. Angry Co. acquired 20% interest in Misery Co. many years ...
A:
Q: If you were to open a small business, such as a local landscaping business, what form of ownership w...
A: A landscaping business can be described for the reasons of this subdivision as a business that const...
Q: Merry Corporation issued 40,500 ordinary shares, par value P 18 in exchange for equipment. At the da...
A: When an asset is purchased through the exchange of asset or equity shares then the fair market value...
Q: The bookstore manager wants to determine the bookstore's optimal order quantity, given the foregoing...
A: Details Available Cost per Piece= 1900 Annual Requirement = 1700 pieces Carrying Cost = 25% of pu...
Q: atement 1:A spiit up increases the he cost per share. Statement 2: A stock
A: In this question, there are two statements We have to decide which statements are correct or which ...
Q: How are deferred taxes calculated? What determines if the company has a deferred asset or a deferred...
A: Deferred tax is a fictitious asset or liability that reflects company income taxation on a premise t...
Q: Blue Corp., a private corporation, received its articles of incorporation on January 3, 2021. It is ...
A: Common stock means to stock in a business owned by individuals who have the ability to vote at compa...
Q: Smith invested P 35,000 cash to start the business 2. Purchase 350 of office supplies on account 3. ...
A: The question is based on the concept of Financial Accounting. Accounting equation is the statement t...
Q: Jeters Company uses a periodic inventory system and reports the following for the month of June. Dat...
A: Inventory valuation is based on the flow of inventory. The LIFO method assumed that the recently pur...
Q: Interest versus dividend income Depot Logistics Inc. has declared pretax income from its operations ...
A: Disclaimer: “Since you have posted a question with multiple sub-parts, we will solve first three sub...
Q: Explain why an ex-dividend date is a required step in the dividend payout process.
A: The ex-dividend date, generally referred to as the reinvestment date, seems to be an investing phras...
Q: .. Comparative balance sheet accounts of Blue Inc. are presented below
A: In this question, we have to make a cash flow by direct method and by the indirect method Cash flow...
Q: Chimco is a limited company operating in the Hat making industry in East England. Below is a cost b...
A: A budget refers to a predetermined plan which is quantifiable and estimates the revenues and expendi...
Q: Kequired ImomatioIn • Selling price per unit $ 7 per unit • Accounts receivable, beginning balance 6...
A: A cash payment budget is prepared to forecast the future expected payments to be made by the company...
Q: Current Current Liabilities Current Assets Ratio Edison 88,000 $ 117,040 35,341 MAXT 85,152 Chatter ...
A: Lets understand the basics. Current ratio is a ratio which shows that, how much current asset is the...
Q: Blossom Express Co. produces wooden crates used for shipping products by ocean liner. In 2022, Bloss...
A: Absorption Costing- Absorption costing is a way of managerial accounting. The absorption costing met...
Q: Describe the components of the profit equation.
A: Profit refers to the earnings of an entity over a specific period of time.
Q: Dibiasky Corporation is a trading company based in Laguna. The auditor in charge for 2020 audit is e...
A: Accounts Payable Balance ad on Dec. 31, 2020 600000 C) Goods shipped FOB shipping point and ar...
Q: Accrual income versus cash flow for a period. Thomas Book Sales, Inc., supplies textbooks to college...
A: Net profit = Sales revenue - Cost of goods sold Net cash flow = Cash receipts - Cost of goods sold
Q: entity discontinued an operation and disposed of the discontinued operation the transaction should b...
A: Discontinued Operations are a part of the company operation which have been discontinued or shut dow...
Q: Tax Accounting Lone star company is a calendar-year corporation, and this year lone star reported $...
A: Solution Dividend is a Distribution of profits by a corporation to its shareholders. When a corporat...
Q: Ann and Jack have been partners for several years. Their firm, A & J Tax Preparation, has been very ...
A: The advantages of corporation as compared to Partnership are as follows: 1. Option (C) Owners have l...
Q: Abba Company accounted for noncurrent assets using the revakuation model. On June 30,2021, the entit...
A: Revaluation of Asset: The term "revaluation of assets" refers to a change in the market value of ass...
Q: On July 1, 2021, Whiskey Company had an equipment with cost of P5,000,000 and accumulated depreciati...
A: The correct answer for the above mentioned question is given in the following steps for your referen...
Q: Distinguish the effect of First in first out (FIFO), Last in last out (LIFO) and average cost on COG...
A: There are three method of Inventory valuation First in first out ( FIFO ) Last in first out ( LIFO...
Q: Bravo Company has the following information at month-end: Sales - P100,000 Sales Returns and Allowan...
A: Net sales = Gross sales -Sales returns and allowances - Sales Discounts
Q: When calculating present value, the the interest rate, the smaller the present value amount. smaller...
A: Present value- In finance and accounting, the notion of present value is extremely important. The cu...
Q: The Dali Group consisted of Dali Ltd, the parent, and its subsidiary, Gleeson Pty Ltd. On 31 Decembe...
A: It is one of the important tools, to prepare the consolidated financial statements of patent and sub...
Q: Clara Company purchased equipment for P5,000,000 on January 1, 2021 with a useful lite of 10 years a...
A: VALUE OF PROPERTY IMMEDIATELY BEFORE THE CLASSIFICATION AS HELD FOR SALE AS ON 31ST DEC, 2022 ...
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Blossom Limited purchased a machine on account on April 1, 2021, at an invoice price of $365,470. On April 2, it paid $2,170 for delivery of the machine. A one-year, $4,120 insurance policy on the machine was purchased on April 5. On April 19, Blossom paid $7,580 for installation and testing of the machine. The machine was ready for use on April 30. (a) Determine the cost of the machine. Cost of the machine $__________Assume REH AG, a hypothetical company, incurs expenditures of AC1,000 per month during the fiscal year ended December 31, 2019 to develop software for internal use. Under IFRS, the company must treat the expenditures as an expense until the software meets the criteria for recognition as an intangible asset, after which time the expenditures can be capitalized as an intangible asset. 1 What is the accounting impact of the company being able to demonstrate that the software met the criteria for recognition as an intangible asset on February 1 versus December 1? 2 How would the treatment of expenditures differ if the company reported under US GAAP and it had established in 2018 that the project was likely to be completed and the software used to perform the function intended?(b) In 2023, Martinez receives the raw materials and pays the required $1,700,000. The raw materials now have a market value of $1,360,000. Prepare the entry to record the purchase. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries.) Date Account Titles and Explanation Dec. 31, 2023 Debit Credit
- А. Place an "X" in the blank for the following items which you believe should be included in the cost of a piece of equipment? 1. Purchase price 2. Sales tax 3. Electricity to run the equipment 4. Installation cost 5. Insurance while being transported 6. Insurance while in use 7. Freight charges В. Your company signed a contract to construct a new building so you borrowed $600,000 on February 1, 2021 and issued a three-year, 6% note which pays interest annually. You spent $200,000 for construction on April 1, 2021 and an additional $300,000 on November 1. How much interest should be capitalized in 2021? Please show your calculations. С. Your company spent $30,000 for repairs and modifications to significantly increase the life of your equipment. What entry should be made for the $30,000? D. You bought equipment on January 1, 2018, for $62,000. The equipment has an estimated life of 8 years and an estimated salvage value of $6,000. Your company uses the straight- line method of…On August 1, 2018, Banco Company purchased a new machine on a deferred payment basis. A down payment of P 100 000 was made and 4 monthly installments of P 250 000 each are to be made beginning on September 1, 2018. The cash equivalent price of the machine was P 950 000. The entity incurred and paid installation costs amounting to P 30 000. What is the amount to be capitalized as cost of the machine?I need help on how to calculate this problem step by step, please. Information concerning Sure Corporation's intangible assets is as follows: On January 1, 2019, Sure signed an agreement to operate as a franchisee of Rapid Copy Service Inc. for an initial franchise fee of $81,000. Of this amount, $21,000 was paid when the agreement was signed, and the balance is payable in 4 annual payments of $15,000 each beginning January 1, 2020. The agreement provides that the down payment is not refundable and no future services are required of the franchisor. The present value at January 2, 2019, of the 4 annual payments discounted at 12% (the implicit rate for a loan of this type) is $45,600. The agreement also provides that 5% of the revenue from the franchise must be paid to the franchisor annually. Sure's revenue from the franchise for 2019 was $800,000. Sure estimates the useful life of the franchise to be 5 years. Sure incurred $69,000 of experimental and development costs in its…
- At the end of the year the Investment in Bacolod account of the home office isP300,500. However, there are transactions discovered to have errors.•Bacolod branch bought equipment on June 1, 2020 costing P63,800 for thehome office's use and the policy is to record the asset in Bacolod's books.During that time the home office recorded the equipment and credited itsreciprocal account of its Bacolod branch.•The policy of the company regarding the equipment's depreciation is that ithas a life of 8 years with no salvage value and the straight-line method shouldbe used. No entry has been made by the home office and branch.•The home office ships merchandise to Bacolod amounting to P96,700. Bacolodrecorded the transaction as P97,600•Bacolod pays the home office's creditors in the amount of P32,400 and sends adebit memo to the home office.•Upon receipt of the debit memo, the home office debited its reciprocalaccount in the amount of P23,400 twice.What is the unadjusted balance of the home office…At the end of the year the Investment in Bacolod account of the home office isP300,500. However, there are transactions discovered to have errors.•Bacolod branch bought equipment on June 1, 2020 costing P63,800 for thehome office's use and the policy is to record the asset in Bacolod's books.During that time the home office recorded the equipment and credited itsreciprocal account of its Bacolod branch.•The policy of the company regarding the equipment's depreciation is that ithas a life of 8 years with no salvage value and the straight-line method shouldbe used. No entry has been made by the home office and branch.•The home office ships merchandise to Bacolod amounting to P96,700. Bacolodrecorded the transaction as P97,600•Bacolod pays the home office's creditors in the amount of P32,400 and sends adebit memo to the home office.•Upon receipt of the debit memo, the home office debited its reciprocalaccount in the amount of P23,400 twice. What is the net adjustment of the home office…At the end of the year the Investment in Bacolod account of the home office isP300,500. However, there are transactions discovered to have errors.•Bacolod branch bought equipment on June 1, 2020 costing P63,800 for thehome office's use and the policy is to record the asset in Bacolod's books.During that time the home office recorded the equipment and credited itsreciprocal account of its Bacolod branch.•The policy of the company regarding the equipment's depreciation is that ithas a life of 8 years with no salvage value and the straight-line method shouldbe used. No entry has been made by the home office and branch.•The home office ships merchandise to Bacolod amounting to P96,700. Bacolodrecorded the transaction as P97,600•Bacolod pays the home office's creditors in the amount of P32,400 and sends adebit memo to the home office.•Upon receipt of the debit memo, the home office debited its reciprocalaccount in the amount of P23,400 twice. What is the net adjustment of the investment…
- On December 12, 2018, an investment costing $80,000 was sold for $100,000. The total of the sale proceeds wascredited to the investment account.Required:1. Prepare the journal entry to correct the error, assuming it is discovered before the books are adjusted orclosed in 2018. (Ignore income taxes.)On December 12, 2018, an investment costing $88,000 was sold for $116,000. The total of the sale proceeds was credited to the investment account. Required:1. Prepare the journal entry to correct the error assuming it is discovered before the books are adjusted or closed in 2018. (Ignore income taxes.)2. Prepare the journal entry to correct the error assuming it is not discovered until early 2019. (Ignore income taxes.)On January 2, 2020, ABC Co. purchased a machine on credit terms 2/10, n/30. The invoice price was P40,000. Additional costs incurred in connection with the machine are as follows: Transportation-in: P1,200 Installation cost: P700 Testing costs prior to regular operation: P550 If the invoice is paid February 1, the acquisition cost of the machine must be a. P41,650 b. P41,100 c. P40,400 d. P39,200 e. answer not given