The total depreciation for the year ended December 31, 2020 is
Q: Doogan Corporation makes a product with the following standard costs: Standard Quantity or…
A: Introduction Material quantity variance calculates difference between standard and actual amount of…
Q: This rate is included in the face of the note: stated rate market rate effective interest yield…
A: Rate of the note determine the payment amount in form of interest to the holder. Interest payment is…
Q: Haystalk Company issues 4,000 shares of restricted stock to its CFO, Corn Needle, on January 1,…
A: Total par value of 4000 shares = 4000 shares ×$5 =$20000
Q: Rosita Flores owns Rosita’s Mexican Restaurant in Tempe, Arizona. Rosita’s is an…
A: Schedule of cash receipts shows the expected cash to be collected by the entity over a particular…
Q: Problem #2 (Adapted) Selected financial data from the September 30 year-end statements of Green…
A: There are various ratios used to calculate the financial position of the company. These ratios helps…
Q: Silven Industries, which manufactures and sells a highly successful line of summer lotions and…
A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…
Q: Issuing Stock Professional Products Inc., a wholesaler of office products, was organized on…
A: Routine transactions, such as customer billings and supplier invoicing, should not be recorded using…
Q: Purchases budget. Lirect Labor Budget Crescent Company produces stuffed toy animals; one of these is…
A: Direct material purchase budget shows the requirement of the material and the cost to purchase that…
Q: 9.) Who pays the accrued interest in a bond trade?
A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…
Q: Assume the following: • The standard price per pound is $2.00. • The standard quantity of pounds…
A: Material Price Variance - It is calculated by using following formula - (Actual Quantity Purchased *…
Q: Direct materials purchases budget for bladder and valve: FlashKick Company Direct Materials…
A:
Q: 3) Mann Company reported on June 20, 2015 a 10% note payable in the amount of Php 3,600,000. The…
A: Calculation of balance of note payable as on 30 June 2016: Amount of note as on 01 Oct 2014 =…
Q: What were Ant's total liabilities in 2019? Write out your answer completely. For example, 25 million…
A: Liabilities refers to the obligation on any individual or a company to pay the amount borrowed from…
Q: On February 5, 2021, an employee filed a P2,000,000 lawsuit against ABC Company for damages suffered…
A: Liabilities are the obligations or dues that needs to be paid out or settled by the business. It can…
Q: Administrative Expense Budget Green Earth Landscaping Company provides monthly and weekly…
A: Budgeting - Budgeting is the process of estimating future operations based on past performance. %…
Q: 2. Calculate the total budgeted contribution margin for Greiner Company by month and in total for…
A: Contribution Margin The Calculation of Contribution Margin is the total sales revenue which is…
Q: omplete the FLASH TRUCKING SERVICES STATEMENT OF CHANGES TO OWNER'S EQUITY DECEMBER 31, 2014 FLASH…
A: Statement of changes in owner equity shows all changes made in owners equity during the particular…
Q: Matrix, Inc., acquired 25% of Neo Enterprises for $2,000,000 on January 1, 2021. The fair value and…
A: Journal entries should not be utilized to record regular transactions such as customer billings and…
Q: Q.2 From the following particulars ascertain the lábour cost per day o 8 hours: 1.Basic.pay…
A: Basic pay=₹200 p.m. Leave pay 5% of ₹200i.e. ₹10p.m. Employer's contribution to PF 8% of ₹210…
Q: Follow Accrual method Cost of Goods Sold $ 164,000 Income Tax Expense 17,470 Merchandise Sales…
A: Cost of goods sold is the actual cost of goods that are being sold to the customers. Gross profit is…
Q: 3) the 456 company purchased office supplies from a-one supplies worth 80,000 on april 4, 2021 A-…
A: company deals in selling product to the customer credit Management system and inventory management…
Q: Kevin owns a small business and uses his vehicle for personal and business use. He drove his car a…
A: Business percentage use=Business milesTotal miles×100
Q: To arrive at the accumulated taxable income, which of the following items does not represent a…
A: We have to find which one is not a positive adjustment in computing the accumulated taxable income.
Q: Billy is a 16-year old dependent on his parents' tax return. Billy has the following income. He has…
A: Introduction The taxable income of a child is calculated by bifurcating his earned income and…
Q: A new drill press is being considered to purchased. The estimated first cost is Php 200,000. The net…
A:
Q: Paulis Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one…
A: Total fixed cost in the flexible budget for 4,580 tenant days will be same as static budget for…
Q: Lynd Company has cash sales of P2,500,000 and net sales of P3,450,000, total assets of P1,240,000…
A: Times-interest earned = Earnings before interest and tax / Interest expense where, Earnings before…
Q: The Schitt Company borrowed $900 on January 1, 2020 at an annual rate of interest of eight percent.…
A: Interest Expense - Interest Expense is the amount payable on the borrowed money. It is the expense…
Q: Apple, Blandy, Cherry, and Debbie are partners sharing profits and losses in the ratio of 40%, 30%,…
A: Partnership is the association of two or more persons who have agreed to share profit and losses in…
Q: Tana Thorne works in a public accounting firm and hopes to eventually be a partner. The management…
A: Audit: Audit is the process of verification of the compliance of the financial statements. It…
Q: Timothy Donaghy has developed a unique formula for growing hair. His proprietary lotion, used…
A: The variable costs are the costs which remains constant for per unit cost but in total changes with…
Q: 1 Record the above four transactions in general journal. 3.2. Define marketable securities. What…
A: Marketable securities are those securities which are the financial securities or instruments which…
Q: Oakdale fashion's ink 2021 income statement a reported below Net sales (all credit):…
A: Taxes are the amount of dues or obligations which needs to be settled by the business to the…
Q: In an effort to increase sales, DARIO Company inaugurated a sales promotional campaign on June 30,…
A: Liabilities means the obligations and dues which needs to be paid off by the business. Premium…
Q: Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or…
A: Direct Material quantity variance = (Actual quantity used×Standard price) - (Standard quantity…
Q: The University of Cincinnati Center for Business Analytics is an outreach center that collaborates…
A: Variable cost: - A variable cost is the cost which is changes according to the change in the volume…
Q: IS a Soie ng
A: As it is not mentioned specifically about the accounting basis adopted by…
Q: Use the following information to calculate cash received from dividends: Dividends revenue $ 30,300…
A: Formula: Cash received from dividends = January 01 dividends receivable + Dividends revenue -…
Q: Laurent is a single individual with an adjusted groes income of $50.000 in 2021. During the ourent…
A: Deductions are the reliefs which are given to the individuals for certain aspects. These amounts are…
Q: How does the inventory accounting choice (LIFO/FIFO) impact a firm's valuation? a)Deferring tax…
A: FIFO - First in First out method of inventory valuation is based on the concept that oldest units…
Q: 4. If the balance of the Building account was P1,400,000 and P300,000 of Accounts Payable were paid…
A: Financial accounting refers to the type of accounting which is primarily used by the outsiders to…
Q: Direct Labor Budget for Service The School of Accounting (SOA) at State University is planning its…
A: GIVEN Direct Labor Budget for Service The School of Accounting (SOA) at State University is…
Q: hè Regal Cycle Company manufactures three types of bicycles-a dirt bike, a mountain bike, and a…
A: Solution 1: Impact on net income on discontinuing racing bike Particulars Current Total…
Q: The tax rate on income on Philippine Bonds (PH Bonds) 0% 10% 20%
A: A bond is a form of collecting money from the general public or banks. The bond is a type of…
Q: Asura Co. purchased land and building for a lump-sum price of P48,000,000. The existing building…
A: Lump-sum purchase: - Lump-sum purchase occurs when different assets or a group of assets are…
Q: Carreker, Inc., has a number of divisions, including the Alamosa Division, producer of surgical…
A: Transfer pricing refers to the value assigned to commodities or services transferred between linked…
Q: On Jan 1, 20X1 received a 3-year interest bearing note collectible in 6 equal semi-annual periods.…
A: Note Receivable- Notes receivable are written promissory notes that allow you to collect a specific…
Q: Reconstruct the account of DTA Corp. for analysis. The available financial data were Gross margin…
A: Operating Income is also known as Income before interest and taxes. It is calculated by deducting…
Q: Lena is a sole proprietor. In April of this year, she sold equipment purchased four years ago for…
A: Gain on equipment sale = selling price - Adjusted basis For first equipment = 17000 - 15500 = 1500
Q: Acquiree Inc. has 100,000 shares of P2 par value stock outstanding. Acquirer Co. purchased 30,000…
A: Goodwill = Acquisition date fair value/purchase consideration - Net assets at Fair value
Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
1. The total depreciation for the year ended December 31, 2020 is
a. P237,000 c. P233,250
b. P232,500 d. P236,250
2. The carrying amount of production machine as of December 31, 2020 is
a. P1,024,500 c. P1,069,500
b. P1,029,000 d. P 990,750
Step by step
Solved in 2 steps
- You are assigned to do the audit the work for Howard Ltd for the calendar year 2019, you found some issues that you believe represent possible adjustments to the company’s books. In addition, there are other issues that need to be addressed. The matters include: Several credit memos that were processed and recorded after year-end relate to sales and account receivables for 2019. These total $42 000. Electricity and other utilities’ invoices received after the cut-off date $30,000 Inventory cut-off tests indicate that $35 000 of inventory received on 30 December 2019 was recorded as purchases and accounts payable in 2020. These items were included in the inventory count at year-end and were therefore included in ending inventory. On 15 December 2019, Howard Ltd declared a bonus issue of 2 000 shares with a par value of $100 000 of its ordinary shares, payable 25 January 2020 to the ordinary shareholders on record as in 30 December 2019. Howard Ltd has not established a reserve for…For the 2021 audit of the financial statements, you are tasked to audit EMPLEO Corporation's liabilities. The following information relates to the obligations of EMPLEO Corporation as of December 31, 2021: • Accounts payable for goods and services purchased on open account amounted to P350,000 on December 31, 2021. This amount was gross of a supplier's debit balance of P30,000. On the other hand, the testing of the accounts receivable account revealed that a customer's credit balance of P50,000 was netted against the balance of the accounts receivable. At December 31, 2021, EMPLEO declared a cash dividend at P0.50 per share on its P10 par value ordinary share capital, payable at January 12, 2022, to shareholders as of December 31, 2022. At December 31, 2021, EMPLEO had 1,000,0000 issued ordinary shares and 800,000 oustanding ordinary shares. • The company financed its receivables, dated November 1, 2021, by discounting its 180-day P400,000 accounts receivable to a bank on a with…Problem 1. You were engaged for the first time to audit the FS of Bebeko Corporation for the periodended December 31, 2020. The company started its operation in 2018. In reviewing the books, theauditor discovered that certain adjustments had either been overlook or improperly recorded at theend of years to 2020. Omissions and other failures for each year are summarized below:
- The fieldwork for the December 31, 2018 audit of Schmidt Corporation ended on March 17, 2019. The financialstatements and auditor's report were issued on March 29, 2019. In each of the material situations (1 through 5)below, indicate the appropriate action (a, b, c). The possible actions are as followsa. Adjust the December 31, 2018 financial statements.b. Disclose the information in a footnote in the December 31, 2018 financial statements.c. No action is required.The situations are as follows:________ 1. On March 1, 2019, one of Schmidt Corporation's major customers declared bankruptcy. The customer'sfinancial condition in 2018 was deteriorating and they owed Schmidt Corporation a large sum of money as of thebalance sheet date.________ 2. On February 17, 2019, Schmidt Corporation sold some machinery for its book value.________ 3. On February 20, 2019 a flood destroyed the entire uninsured inventory in one of Schmidt'swarehouses.________ 4. On January 5, 2019, there was a significant…PROBLEM NO. 3 In the audit of the books of Greenwich Company for the year 2020, the following items and information appeared in the Production Machines account of the auditee: Credit Date 2020 Jan. 01 Particulars Debit Balance-Machines 1, 2, 3, and 4 at P90,000 each P 360,000 Machine 5 Aug 31 198,000 Machine 1 Machine 6 P 3,000 Sept 30 Dec 01 Dec 01 31 96,000 432,000 Machines 7 and 8 at P216,000 each Machine 2 Balance 21,000 1,062,000 P1,086,000 P1.086,000 The Accumulated Depreciation account contained no entries for the year 2020. The balance on January 1, 2020 per your audit, was as follows: Machine 1 P 84,375 39,375 33,750 22,500 P 180,000 Machine 2 Machine 3 Machine 4 Total Based on your further inquiry and verification, you noted the following: 1. Machine 5 was purchased for cash; it replaced Machine 1, which was sold on this date for P3,000. 2. Machine 2 was destroyed by the thickness of engine oil used leading to explosion on December 1, 2020. Insurance of P21,000 was recovered.…For the 2021 audit of the financial statements, you are tasked to audit EMPLEO Corporation's abilities. The following information relates to the obligations of EMPLEO Corporation as of December 31, 2021: Accounts payable for goods and services purchased on open account amounted to P350,000 on December 31, 2021. This amount was gross of a supplier's debit balance of P30,000, On the other hand, the testing of the accounts receivable account revealed that a customer's credit balance of P50,000 was netted against the balance of the accounts receivable At December 31, 2021, EMPLEO declared a cash dividend at PO.50 per share on its P10 par value ordinary share capital, payable at January 12, 2022, to shareholders as of December 31, 2022. At December 31, 2021, EMPLEO had 1,000,0000 issued ordinary shares and 800,000 oustanding ordinary shares. The company financed its receivables, dated November 1, 2021, by discounting its 180-day P400,000 accounts receivable to a bank on a with…
- For the 2021 audit of the financial statements, you are tasked to audit EMPLEO Corporation’s liabilities. The following information relates to the obligations of EMPLEO Corporation as of December 31, 2021: Accounts payable for goods and services purchased on open account amounted to P350,000 on December 31, 2021. This amount was gross of a supplier’s debit balance of P30,000. On the other hand, the testing of the accounts receivable account revealed that a customer’s credit balance of P50,000 was netted against the balance of the accounts receivable. At December 31, 2021, EMPLEO declared a cash dividend at P0.50 per share on its P10 par value ordinary share capital, payable at January 12, 2022, to shareholders as of December 31, 2022. At December 31, 2021, EMPLEO had 1,000,0000 issued ordinary shares and 800,000 oustanding ordinary shares. The company financed its receivables, dated November 1, 2021, by discounting its 180-day P400,000 accounts receivable to a bank on a with…For the 2021 audit of the financial statements, you are tasked to audit EMPLEO Corporation’s liabilities. The following information relates to the obligations of EMPLEO Corporation as of December 31, 2021: Accounts payable for goods and services purchased on open account amounted to P350,000 on December 31, 2021. This amount was gross of a supplier’s debit balance of P30,000. On the other hand, the testing of the accounts receivable account revealed that a customer’s credit balance of P50,000 was netted against the balance of the accounts receivable. At December 31, 2021, EMPLEO declared a cash dividend at P0.50 per share on its P10 par value ordinary share capital, payable at January 12, 2022, to shareholders as of December 31, 2022. At December 31, 2021, EMPLEO had 1,000,0000 issued ordinary shares and 800,000 oustanding ordinary shares. The company financed its receivables, dated November 1, 2021, by discounting its 180-day P400,000 accounts receivable to a bank on a with…For the 2021 audit of the financial statements, you are tasked to audit EMPLEO Corporation’s liabilities. The following information relates to the obligations of EMPLEO Corporation as of December 31, 2021: Accounts payable for goods and services purchased on open account amounted to P350,000 on December 31, 2021. This amount was gross of a supplier’s debit balance of P30,000. On the other hand, the testing of the accounts receivable account revealed that a customer’s credit balance of P50,000 was netted against the balance of the accounts receivable. At December 31, 2021, EMPLEO declared a cash dividend at P0.50 per share on its P10 par value ordinary share capital, payable at January 12, 2022, to shareholders as of December 31, 2022. At December 31, 2021, EMPLEO had 1,000,0000 issued ordinary shares and 800,000 oustanding ordinary shares. The company financed its receivables, dated November 1, 2021, by discounting its 180-day P400,000 accounts receivable to a bank on a with…
- Problem 1. You were engaged for the first time to audit the FS of Bebeko Corporation for the period ended December 31, 2020. The company started its operation in 2018. In reviewing the books, the auditor discovered that certain adjustments had either been overlook or improperly recorded at the end of years to 2020. Omissions and other failures for each year are summarized below: December 31 2018 2019 2020 1. Omissions of the following year-end accruals/deferrals: a. Accrued utilities expense b. Accrued interest income c. Prepaid rent expense d. Unearned royalty income |2. Delivery of merchandise at year-end to customers, recorded as sales upon collection the following year. 3. Receipt of merchandise at year-end from suppliers, recorded as purchases upon payment the following year. 4. Cash received from customers at year-end, recorded as sales deliveries yet to be made the following year. In the year of collection, corresponding 5000 7000 6000 2000 4000 3000 2000 1000 8000 3000 5000…17. Which of the following best describes the auditors' approach to the audit of the ending balance of property, plant, and equipment for a continuing nonpublic client? Group of answer choices Audit of selected purchases and retirements for the last few years Audit of changes in the accounts since inception of the company Direct audit of the ending balance Agreement of the beginning balance to prior year's working papers and audit of significant changes in the accountsYou are the auditor in charge of the audit of Irene PLC, which has a 30 June year end. The subsequent events review for the year ended 30 June 2022 revealed that, on 1 August 2022, a receiver was appointed at a major customer. At 30 June 2022 that customer owed GHS 150,000 and goods costing GHS 200,000 made to that customer’s specification were held in inventory. Both these amounts are material.RequiredList the matters to which you would direct your attention in respect of the above in relation to the audit for the year ended 30 June 2022, if the audit report on the financial statements has not yet been written.