nise; expires payment on leasehold (term of lease is 2 y 2019 including incorporation fee, P3,000 a of organizing. P15, 000 (all fees incurred | patent A (25-year life determined by com leveloping secret formula
Q: Which of the following is not an example of the application of professional skepticism? 1. Designing...
A: Proper professional care necessitates professional skepticism on the part of the auditor. Profession...
Q: Sage Hill, Inc. leases a piece of equipment to Bucks Company on January 1, 2020. The contract stipul...
A: Lease: When one party lets out its assets to another party for some time or specific time mentioned ...
Q: 1. How much is the total expense? 2. How much is the net income? 3. What is the balance of the endin...
A: Hi student Since there are multiple subparts, we will answer only first three subparts.
Q: A taxpayer filed his income tax return in October 28, 2018. The deadline for the return was April 15...
A: solution concept as per the income tax provision stated by BIR In case if a person fails to file ret...
Q: The following information is departmental cost allocation with two service departments and two produ...
A: >Service department cost is allocated to production departments using various methods like: #...
Q: Knowledge Check 01 Select the correct term for the following types of users: Users Terms Customers P...
A: People who are outside the business entity and uses the business information to evaluate the perform...
Q: Problem 7- 15 Accrued Expense On September 1, 200A, X Co. issued amounting to P300,000, 12% interest...
A: Since you have asked multiple questions, we will solve the first question for you. If you want any s...
Q: What are the three primary reasons an organization holds cash or cash equivalents?
A: Cash and cash equivalents are those liquid assets which are either in cash or can be converted into ...
Q: 2-a. Refer to the original data. How much will net operating income increase (decrease) per month if...
A: Operating income refers to the income or gross profit generated by the company from its operations o...
Q: How does Accounts Receivable impact Declan's Designs 2022 Statement of Cash Flows?
A: The cash flow statement is prepared to record the cash flow from various activities during the perio...
Q: Name and describe six social media tools for recruiting talent
A: The contemporary world is centered around social media. The youths, who make for a large proportion ...
Q: Tamarisk Corporation enters into a 7-year lease of equipment on December 31, 2019, which requires 7 ...
A: Answer - Journal Entry in Lost Ark’s for 2019 - Date Particular Debit Credit Dec 31, 2019...
Q: On December 30, Year 1, ABC Corporation sold a machine to DEF Corporation in exchange for a non-inte...
A: Note payable is to be measured at present value of all future cash inflows using market interest rat...
Q: What is Declan's Designs' 2022 total "Common Stock Issuance" to be reported on its Statement of Cash...
A: The cash flow statement is prepared to record the cash flow from various activities during the perio...
Q: The following bank reconciliation is presented for HRCA Company for the month of November 2020: Bala...
A: Ideally cash balance as per cashbook and bank statement balance should reconcile with each other and...
Q: Casper used the following assets in his Schedule C trade or business in the tax year 2021. Casper is...
A: MACRS Depreciation Modified Accelerated cost recovery system Depreciation which are implemented by t...
Q: asked this question this afternoon but I got a wrong answer back. The wrong answer that someone g...
A:
Q: 2020. As of December 31, Luccio incurred total construction costs of P600,000 and estimates addition...
A: The profit is calculated as excess of revenues over expenses incurred. For construction contract, t...
Q: Undertaking to change name must be submitted. a. Corporation Code of the Philippines b. Revised Cor...
A: Hi student Since there are multiple questions, we will answer only first question.
Q: Sunland Company specializes in leasing large storage units to other businesses. Sunland entered a co...
A: GIVEN te Lease Payment Interest (9%) onOutstanding Lease Receivable Reduction ofLease Rec...
Q: ecord adjusting journal entries for each separate case elow for year ended December 31. ssume no oth...
A: To keep track of financial transactions, journal entries are used. To create a journal entry, you en...
Q: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising bud...
A: CVP analysis: Cost Volume Profit analysis is a method of cost accounting used to analyse the cost an...
Q: An analysis of the cash book and other records of Byle Corporation shows the following data: Account...
A: Purchase on credit = Ending accounts payable + Payment on the accounts payable - Ending accounts pay...
Q: TAARE ZAMEENPAR Company reported the following changes in the account balances for the current year,...
A: Stockholders' equity: Stockholders' equity means the net assets available to shareholders after dedu...
Q: Question 8 You have just been assigned as the manager of an engagement with an audit client. Before ...
A: Audit Engagement: An audit engagement is an understanding between a client and a free outsider inspe...
Q: The 2021 financial statement audit of OMG company began when the trial balance was received from man...
A: Answer: Given case: The schedule of liabilities to vendor showed that the company has only five supp...
Q: 2020 2021 Share capital (P100 par value) 5,000,000 5,850,000 Share premium 1,000,000 1,600,000 Retai...
A: The dividend is declared to the shareholders from the retained earnings of the business.
Q: What is Declan's Design's 2022 Cash Flows from Operating Activities? Question 23 options: Incr...
A: The cash flow statement is prepared to record the cash flow from various activities during the perio...
Q: Rich Goma Corporation failed to file its income tax return for the fiscal year ending August 31, 202...
A: In Philippines interest for late filing of income tax return is levy at 12% per year from the date t...
Q: Wolford Department Store is located in midtown Metropolis. During the past several years, net income...
A: Income statement is prepared by the business organizations so as to determine how much amount of Gro...
Q: 2. ABC Corporation issued P1,000,000 in 8% bonds, maturing in ten years and paying interest semi-ann...
A: Solution Concept When the coupon rate of bond = market rate of interest , bond is called a par valu...
Q: Sales 60000 Variable Costs Fixed Costs 36000 20000 Earnings Before Interest and Taxes 4000 3000 1000...
A: The contribution margin is calculated as difference between sales and variable costs. The total cos...
Q: True or false If transportation costs are the responsibility of the buyer, they should be added to t...
A: Correct answer-True
Q: 5. Thad Morgan, a motorcycle enthusiast, has been exploring the possibility of relaunching the Weste...
A: Given sale units = 500 Sale price = $19,000 per unit Variable cost = $15,200 per unit Contribution m...
Q: rts B and C
A: Net income is the amount that is left over after the company has paid all its expenses including int...
Q: For the months of January and February, Crane Ltd. recorded cash deposits in its books of $5,100 and...
A: Given that there are no deposits in transit at the beginning of January. Cash deposit in January and...
Q: An analysis of the cash book and other records of Byle Corporation shows the following data: Account...
A: Purchase on credit = Ending accounts payable + Payment on the accounts payable - Ending accounts pay...
Q: What is the balance of the ending capital? 2. How much is the increase in the capital of choy after ...
A: Accounting equation is an expression which is used to describe the relationship between asset, liabi...
Q: You are a newly hired accountant for Sushi Beeber, Inc., a retail company specializing in apparel fo...
A: Weighted Average Cost of Inventory: It is the weighted average to calculate the amount of cost of ...
Q: A taxpayer filed his income tax return in October 28, 2022. The deadline for the return was April 15...
A: solution concept as per the income tax provision stated by BIR in event when a person fails to file ...
Q: Y Corporation has daily collections of P180,000 from a selected foreign customer group. The bank off...
A: Solution Given Amount 130000 Current clearing time 8 days Reduced clearing time 3 ...
Q: Redlands Inc. sells one product for $5. The variable cost per item is $3, and the fixed costs for th...
A: Hi student Since there are multiple questions, we will answer only first question. Since first quest...
Q: Wynn Company reported revenue of P6,000,000 under the cash basis for the year ended 2020. Additional...
A: Under accrual basis of accounting, transactions for revenue is recorded when earned and expenses are...
Q: At the beginning of September, Helen Rojas started Rojas Wealth Management Consulting, a firm that o...
A: Statement of owner's equity = Capital + Net income - Withdrawals Net Income = Revenue - expenses As...
Q: a. On July 1, Lopez Company paid $2,700 for six months of insurance coverage. No adjustments have be...
A: >Adjusting entries are recorded, as part of completion of accounting cycle. >These are mad...
Q: GG Co. had the following transactions with two subsidiaries, OO and RR during 2020: Sales of P105,00...
A: In consolidated Balance sheet any transaction which is happen between holding and subsidiary company...
Q: The following transactions (in summary) affecting the accounts receivable of Seraphine company occur...
A: Allowance Method - Under allowance method company make provision of uncollectible accounts at the en...
Q: At the beginning of current year, Baket Company started business and issued share capital, 60,000 sh...
A: GIVEN At the beginning of the current year, Glasgow Company started business and issued share capi...
Q: Lloyd’s Auto Specialist Ltd. journal entry for August 2021 Date Details DR CR 1-Aug Cash 150,000 ...
A: An income statement is a financial report that indicates the revenue and expenses of a business. It ...
Q: Corporation resells one product to a small isolated community. It sells an average of 60 sacks, but ...
A:
Compute for the amount presented as noncash Assets in the balance sheet on December 31, 2020 using the transactions below
Step by step
Solved in 2 steps
- On December 31, 2019, Vail Company owned the following assets: Vail computes depreciation and amortization expense to the nearest whole year. During 2020, Vail engaged in the following transactions: Required: 1. Check the accuracy of the accumulated depreciation balances at December 31, 2019. Round to the nearest whole dollar in all requirements. 2. Prepare journal entries to record the preceding events in 2020, as well as the year-end recording of depreciation expense. 3. Prepare an Accumulated Depreciation account for each category of assets, enter the beginning balance, post the journal entries from Requirement 2, and compute the ending balance.Dinnell Company owns the following assets: In the year of acquisition and retirement of an asset, Dinnell records depreciation expense for one-half year. During 2020, Asset A was sold for 7,000. Required: Prepare the journal entries to record depreciation on each asset for 2017 through 2020 and the sale of Asset A. Round all answers to the nearest dollar.Reichenbach Co., organized in 2019, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2020 and 2021. Intangible Assets 7/1/20 8-year franchise; expiration date 6/30/25 $ 48,000 10/1/20 Advance payment on laboratory space (2-year lease) 24,000 12/31/20 Net loss for 2020 including state incorporation fee, $1,000, and related legal fees of organizing, $5,000 (all fees incurred in 2020) 16,000 1/2/21 Patent purchased (10-year life) 84,000 3/1/21 Cost of developing a secret formula (indefinite life) 75,000 4/1/21 Goodwill purchased (indefinite life) 278,400 6/1/21 Legal fee for successful defense of patent purchased above 12,650 9/1/21 Research and development costs 160,000 Instructions Prepare the necessary entries to clear the Intangible Assets account and to set up separate accounts for distinct types of intangibles. Make the entries as of December 31, 2021,…
- Carla Vista Co., organized in 2024, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2025 and 2026, C 7/1/25 10/1/25 12/31/25 1/2/26 3/1/26 4/1/26 6/1/26 9/1/26 Intangible Assets 8-year franchise; expiration date 6/30/33 Advance payment on laboratory space (2-year lease) Net loss for 2025 including state incorporation fee, $3,000, and related legal fees of organizing. $7,000 (all fees incurred in 2025) Patent purchased (10-year life) Cost of developing a secret formula (indefinite life) Goodwill purchased (indefinite life) Legal fee for successful defense of patent purchased above Research and development costs Account Titles and Explanation (To clear the Intangible Assets) (To record current amount for Franchises) (To record current amount for Rents) Prepare the necessary entries to clear the Intangible Assets account and to set up separate accounts for distinct types of intangibles. Make the…Wildhorse Co., organized in 2019, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2020 and 2021. Intangible Assets 7/1/20 8-year franchise; expiration date 6/30/28 $52,800 10/1/20 Advance payment on laboratory space (2-year lease) 24,000 12/31/20 Net loss for 2020 including state incorporation fee, $1,500, and related legal fees of organizing, $5,500 (all fees incurred in 2020) 12,400 1/2/21 Patent purchased (10-year life) 83,800 3/1/21 Cost of developing a secret formula (indefinite life) 88,000 4/1/21 Goodwill purchased (indefinite life) 274,600 6/1/21 Legal fee for successful defense of patent purchased above 13,685 9/1/21 Research and development costs 173,000 Prepare the necessary entries to clear the Intangible Assets account and to set up separate accounts for distinct types of intangibles. Make the entries as of December…Information concerning Tully Corporation's intangible assets is asfollows:a. On January 1, 2019, Tully signed an agreement to operate as afranchisee of Rapid Copy Service Inc. for an initial franchise fee of$85,000. Of this amount, $25,000 was paid when the agreement was signed, and the balance is payable in 4 annual payments of $15,000each beginning January 1, 2020. The agreement provides that thedown payment is not refundable and no future services arerequired of the franchisor. The present value at January 2, 2019, ofthe 4 annual payments discounted at 14% (the implicit rate for a loan of this type) is $43,700. The agreement also provides that 5%of the revenue from the franchise must be paid to the franchisorannually. Tully's revenue from the franchise for 2019 was $900,000.Tully estimates the useful life of the franchise to be 10 years. b. Tully incurred $78,000 of experimental and development costs inits laboratory to develop a patent, which was granted on January 2, 2019. Legal…
- Wildhorse Co., organized in 2019, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2020 and 2021. Intangible Assets 7/1/20 8-year franchise; expiration date 6/30/28 $52,800 10/1/20 Advance payment on laboratory space (2-year lease) 24,000 12/31/20 Net loss for 2020 including state incorporation fee, $1,500, and related legal fees of organizing, $5,500 (all fees incurred in 2020) 12,400 1/2/21 Patent purchased (10-year life) 83,800 3/1/21 Cost of developing a secret formula (indefinite life) 88,000 4/1/21 Goodwill purchased (indefinite life) 274,600 6/1/21 Legal fee for successful defense of patent purchased above 13,685 9/1/21 Research and development costs 173,000 Prepare the necessary entries to clear the Intangible Assets account and to set up separate accounts for distinct types of intangibles. Make the entries as of December…Sandhill Co., organized in 2024, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2025 and 2026. 7/1/25 10/1/25 12/31/25 1/2/26 3/1/26 4/1/26 6/1/26 9/1/26 Intangible Assets 8-year franchise; expiration date 6/30/33 Advance payment on laboratory space (2-year lease) Net loss for 2025 including state incorporation fee, $1,000, and related legal fees of organizing, $5,000 (all fees incurred in 2025) Patent purchased (10-year life) Cost of developing a secret formula (indefinite life) Goodwill purchased (indefinite life) Legal fee for successful defense of patent purchased above Research and development costs $60,000 26,400 12,400 84,400 85,000 277,000 12,995 180,000 Prepare the necessary entries to clear the Intangible Assets account and to set up separate accounts for distinct types of intangibles. Make the entries as of December 31, 2026, recording any necessary amortization. (Ignore income tax…Crane Company, organized in 2019, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2020. 1/2/20 Purchased patent (9-year life) $407,700 4/1/20 Purchase goodwill (indefinite life) 363,000 7/1/20 Purchased franchise with 10-year life; expiration date 7/1/30 443,000 8/1/20 Payment of copyright (5-year life) 171,600 9/1/20 Research and development costs 233,000 $1,618,300 (a1) Prepare the necessary entry to clear the Intangible Assets account and to set up separate accounts for distinct types of intangibles. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit to search
- You noted the following items relative to the company's intangibles assets of Pete Corporation at December 31, 2020.• On January, 2019 Pete signed an agreement to operate as franchisee of Clear Copy Service, Inc., for an initial franchise of P680,000. Of this amount, P200,000 was paid when the agreement was signed and the balance was payable in four annual payment of P120,000 each beginning on January 1, 2020. The agreement provides that the down payment is not refundable and no future services are required in the franchisor. The implicit rate for loan of this type is 14%. The agreement also provides that 5% of the revenue from the franchise must be paid to the franchisor annually. Pete's revenue from the franchise for 2020 was P8,000,000. Pete estimates the useful life of the franchise to be ten years.• Pete incurred P624,000 of experimental development costs in its laboratory to develop a patent which was granted on January 2, 2019, Legal fees and other costs associated with the…Sheridan Company, organized in 2019, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2020. 1/2/20 Purchased patent (8-year life) $348,800 4/1/20 Purchase goodwill (indefinite life) 346,000 7/1/20 Purchased franchise with 10-year life; expiration date 7/1/30 426,000 8/1/20 Payment of copyright (5-year life) 151,200 9/1/20 Research and development costs 216,000 $1,488,000 1). Prepare the necessary entry to clear the Intangible Assets account and to set up separate accounts for distinct types of intangibles. 2). Make the entry as of December 31, 2020, recording any necessary amortization 3). Make the entry as of December 31, 2020, recording any necessary amortization Use straight-line amortizationInformation concerning Adnan Corporation’s intangible assets is as follows. (a) On January 1, 2019, Adnan signed an agreement to operate as a franchisee of Hamed Copy Service, Inc. for an initial franchise fee of R$95,000. Of this amount, R$19,000 was paid when the agreement was signed, and the balance is payable in 4 annual payments of R$19,000 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 1, 2019, of the 4 annual payments discounted at 14% (the implicit rate for a loan of this type) is R$55,350. The agreement also provides that 5% of the revenue from the franchise must be paid to the franchisor annually. Adnan estimates the useful life of the franchise to be 10 years. (b) Adnan incurred R$85,000 of experimental and development costs in its laboratory to develop a patent that was granted on January 2, 2019. Legal fees and other costs associated with…