WHAT IS THE TOTAL REVENUE TO BE RECOGNIZED BY ENTITY A FOR THE PERIOD ENDED DEC;EMBER 31, 2021
Q: If the percentage of completion method had been used, the The cumulative effect of the accounting…
A: The increase in income due to a change in the method of depreciation shall be adjusted towards…
Q: Required: payable by Ontario Company. 2. Prepare the appropriate adjusting entry for the note…
A: Solution:- Preparation of journal entries as follows under:-
Q: A company had the following assets and liabilities at the beginning and end of the current year: /…
A: Option (d), 68,000 is the correct answer.
Q: Requirement What is the revenue figure to be presented in the statement of profit or loss for the…
A: Discount allowed is a contra sales account. It reduces the revenue. Discount received reduces the…
Q: How much revenues from major customers will MILKTEA disclose as part of its entity-wide disclosures…
A: As per IFRS 8 (International Financial Reporting System), the revenue which the company has…
Q: The Calcutta Association submits to you its Receipts and payments Accoun for the year ending on 31st…
A:
Q: What total amount should be reported as on December 31, 2021? adjusting events
A: Auditing refers to the process of inspecting or examining the financial records and statements of…
Q: Compute the total increase (or decrease) for the Home Office account balances on December 31, 2021.
A: To find out TOTAL increase or (decrease) for Home Office Account Balance, first we will have to make…
Q: 4. Selected data from the ledger of Burt Co., after adjustments, on September 30, the end of the…
A: In this numerical has covered the concept of Income Statement (single Step) and Statement of Owner's…
Q: The following accounts and their balances appear in an unadjusted trial balance of CASHEW Company as…
A: The question is based on the concept of Financial Accounting.
Q: transaction occur on 25 June 2019 is an income to
A: An income is to be recognized if the right to receive the amount of consideration is confirmed. As…
Q: ) statement of profit and loss and other comprehensive income for the year ended 30 june 2019 ii)…
A: Financial Statement:- These are statements prepared at the end of the financial year to know the…
Q: prepare a. Income statement for the year 2021 b. Balance sheet for 31st December 2021
A: Income Statement : It is a statement that shows net total income earned by the organization during…
Q: 1. On December 31, 2020, what is note received from Company AF
A: Note receivable: It is a written promise. The promise is for receiving specific amount of cash on…
Q: Case 1: SAP Ltd’s financial year ends on 30 June. On 1 August 2019, SAP Ltd determined after…
A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…
Q: Required: 1. Prepare journal entries to recognize revenue for 2018, 2019 and 2020. I
A: In Year 2018 Construction contract price: $8,360,000 %age completion= $2,120,000…
Q: What is Phoenix's consolidated retained earnings balance at December 31.2018?
A: Retained earnings: Retained earnings are the portion of earnings kept by the business for the…
Q: 33. As of Dec. 31, 2020, Unadjusted Interest Income account of Entity A was P5,000. It was learned…
A: Income that is not earned should be transferred to the Unearned income account. 1. journal entry to…
Q: State the effect the following situation would have on the amount of annual net income reported for…
A: Given situation is: The collection of USD 5,000 for services yet unperformed as of December 31, was…
Q: i. Statement of Profit or Loss and Others Comprehensive Income for the year ended 31 December 2019.…
A: Statement of Comprehensive Income: comprehensive income consists of 1) a corporation's net income…
Q: ended 30 June 2021. Prepare an income statement for the year ended 30 June 2021. Note: An Earnings…
A:
Q: b. An unearned commissionaccount in thetrial balance atthe end of the year showed a balance of…
A: The adjustment entries are prepared to adjust the revenue and expenses of the period.
Q: or use in the business over more than one financial period. B. A legally enforceable obligation of…
A: The right option is D. Assets that are usually temporary in nature and can be converted to cash…
Q: ow much uncollectible accounts expense should be presented on the statement of comprehensive income…
A: Allowance for doubtful accounts means where we expect some debts to become bad in near future then…
Q: On December 31, 2021, Utilities expense for the year as appropriately reported in the statement of…
A: Total payments of P108,000 includes the payment of P9,000 that was due for 2020. So amount paid for…
Q: 68. The following account balance were taken from Entity C for the quarter ending March 31,…
A: Formula: Prime cost = Direct materials + Direct labor
Q: or the year ended December 31, 2020, Tam's records total franchise revenue in an amount of
A: Revenue to be recognised is equal to = initial amount on signing of contract + yearly revenue +…
Q: Instruction: (c) Prepare the multiple-step income statement for the year ended December 31, 2021.
A: Statement of income is prepared to calculated total net profit earned by the company from operating…
Q: a. Compute the company's current E&P for the year ended December 31, 2021. b. Compute the company's…
A: Current Earnings and Profits refers to the net income earned by the organization after all the…
Q: ost to and balance the appropriation account in the general ledger of Newcastle Enterprises for the…
A:
Q: Prepare the December 31 year-end entry that companies record to adjust the Revenue and the Unearned…
A: Unearned revenue is the money received by the enterprises for which the service/ product are yet to…
Q: Entity A issued a 12%, ₱500,000, one-year, note payable on July 1, 20x1. The principal and interest…
A: Interest payable is the amount of interest expense which has already been incurred but has not been…
Q: From the Trial Balance, Prepare the statement of comprehensive income for the year ended 31…
A: Statement of Comprehensive income is the statement which shows all income and expenses of the…
Q: Prepare an adjusted trial balance in the space below. Quick Tax Corporation Adjusted Trial Balance…
A:
Q: A corporation commences operations on January 1, 2019. It has the following account balances at…
A: Introduction: Net Assets: Any Asset having economic resource called as Assets. Assets are of two…
Q: adjusted balance of accounts payable on December 31, 2021?
A: Answer: Unadjusted Balance of Accounts payable as on Dec 31,2021…
Q: Sunland Company collected $15760 in May of 2021 for 4 months of service which would take place from…
A: Revenue refers to the profit that the company earns from the sale of the item or by providing…
Q: open encumbrances at year-end reported in the financial statements
A: Open encumbrances are amounts to be set aside for certain purposes and they are not closed until the…
Q: If an entity that uses a calendar year period and reports on an annual basis changes its business…
A: Calander year is the year which begin on 1 January and ends on 31 december. We are given that,…
Q: What is the revenue to be recognized by Entity A for the year ended December 31, 2020?
A: Particulars Stand-alone amount Revenue Royalty $25000 Non-Refundable Fees: Construction…
Q: on January 9, 2021. The company made the followi REVENUE SHOULD BE RECORDED UNDER EAC provide a GAAP…
A: a. For the first item, depreciation must be charged to profit or loss irrespective of whether the…
Q: Subsequent events are reviewed through which date under IFRS?(a) Statement of financial position…
A: (c) Date of independent auditor’s opinion
Q: Interim financial reports should be published a. Within a month of the half year-end b. Once a…
A: Interim financial reports consists of presentation of the financial statements of a company of…
Q: An entity is preparing half-yearly financial information in line with PAS 34. The period to be…
A: SOLUTION- A NEW PFRS HAS BEEN PUBLISHED THAT IS EFFECTIVE FOR THE PERIODS BEGINNING ON OR AFTER…
Q: Required: How much should be reported as rent expense in SEVEN's income statement for the year…
A: Starting date of Lease= 01-May-21 Free rent period= 7 months ( May21-Nov21) Annual lease rent =…
Q: On December 31, 2021, Utilities expense for the year as appropriately reported in the statement of…
A: The adjustment entries are prepared to adjust the revenues and expenses of the current period.
Q: Required to prepare : A) Trading and profit and loss appropriation account for the year ended 31…
A: Statement of income shows all the income(s) earned by the organization. There are certain ways for…
Q: Required – For each of the two CGUS, prepare the impairment journal entry (if any) at December 31,…
A: Impairment is the reduction in fair value of assets in market below the carrying value of assets in…
Q: On December 31, 2021, the Home Office Account on HIJ Branch has a balance of P52,800. Compute the…
A: Investment is the amount which is spent by the producer for the purchase of those goods which…
WHAT IS THE TOTAL REVENUE TO BE RECOGNIZED BY ENTITY A FOR THE PERIOD ENDED DEC;EMBER 31, 2021
Step by step
Solved in 2 steps
- On December 31, 2018, SG signed an agreement authorizing Asher Company to operate as a franchisee for an initial franchise fee of P750,000. Of this amount, P250,000 nonrefundable down payment was paid upon signing of the agreement and the balance is payable in four equal annual payment beginning December 31, 2018. The nonrefundable down payment represents a fair measure of the services already performed by SG however, substantial future services are required of SG. Asher’s credit rating is such that collection of the note is reasonably certain and that the money can be borrowed at 12%. On December 31, 2018, earned franchise fees should be reported as: (Round off present value factor to 2 decimal places.)A Franchisor entered into a franchise agreement with B, franchisee, on March 31, 2021. The total franchise fee is P500,000, of which P100,000 is payable upon signing and the balance in four equal annual installments. The down payment is refundable in the event the franchisor fails to render services and none thus far had been rendered. When B's prepares its financial statements on March 31, 2021, the franchise fee revenue to be reported is?On January 1, 2021, an entity granted franchise to a franchisee. The franchise agreement requires the franchisee to pay a non-refundable initial franchise fee of P1,500,000 and sales-based royalty of 8% of the sales of the franchisee. The franchisee paid P500,000 upon signing of the agreement and the balance payable in four equal annual installments starting December 31, 2021. The franchisee’s credit rating indicates that he can borrow money at 7% for a loan of this type. In relation to the non-refundable initial franchise fee, the franchise agreement required the entity to render the following distinct performance obligations: · To construct the franchisee’s stall with stand-alone selling price of P600,000. · To deliver 20,000 units of raw materials to the franchisee with stand-alone selling price of P750,000. · To allow the franchisee the access to the entity’s tradename for a period of ten years starting January 1, 2021 with stand-alone selling price of…
- On March 01, 2021, WX entered into a franchise contract with YZ. The franchise agreement required the franchisee, YZ, to pay a nonrefundable upfront fee in the amount of P1,440,000 and on-going payment of royalties equivalent to 5% of the sales of the franchisee. YZ paid the non-refundable upfront fee on March 01, 2021. In relation to the nonrefundable upfront fee, the franchise agreement required WX to render the following performance obligations: To construct the franchisee's stall with stand-alone selling price of P300,000. To supply cooking equipment and cash registers. Price of competitors for the similar items (cooking equipment and cash registers) is valued at P240,000 while the forecast of the expected cost of AshLloyd for the performance obligation is P200,000 plus an appropriate margin above cost of 25%. To deliver 10,000 units of raw materials to YZ with stand-alone selling price of P460,000. To allow YZ to use the entity's tradename for a period of 10 years starting…On March 01, 2021, WX entered into a franchise contract with YZ. The franchise agreement required the franchisee, YZ, to pay a nonrefundable upfront fee in the amount of P1,440,000 and on-going payment of royalties equivalent to 5% of the sales of the franchisee. YZ paid the non-refundable upfront fee on March 01, 2021. In relation to the nonrefundable upfront fee, the franchise agreement required WX to render the following performance obligations: To construct the franchisee's stall with stand-alone selling price of P300,000. To supply cooking equipment and cash registers. Price of competitors for the similar items (cooking equipment and cash registers) is valued at P240,000 while the forecast of the expected cost of AshLloyd for the performance obligation is P200,000 plus an appropriate margin above cost of 25%. To deliver 10,000 units of raw materials to YZ with stand-alone selling price of P460,000. To allow YZ to use the entity's tradename for a period of 10 years starting on the…On June 1, 2020, Chesnaught entered into a franchise agreement with Quilladin Inc. to sell their products. The agreement provides for an initial franchise fee of P3,000,000 which is payable as follows: P1,000,000 cash to be paid upon signing the contract, and the balance in four equal annual installments every December 31, starting in 2020, Chesnaught signs a non-interest bearing note for the balance. The credit, rating of the franchisee indicates that the money can be borrowed at 10%. The present value factor of an ordinary annuity at 10% for 4 periods is 3.1698. The agreement further provides that the franchisee must pay a continuing franchise fee equal to 5% of its monthly gross sales over the six years licensing period. Quilladin incurred direct cost of P930,564 and indirect costs of P167,400. The franchisee started business operations on July 1, 2020 and was able to generate sales of P1,240,000 for 2020. The first installment payment was made in due date. Assuming that the…
- On January 1, 2020, an entity granted a franchise to a franchisee. The franchise agreement requires the franchisee to pay a non refundable upfront fee in the amount of P400,000 and on-going payment of royalties equivalent to 5% of the sales of the franchisee. The franchisee paid the non refundable upfront fee on January 1, 2020. In relation to the non refundable upfront fee, the franchise agreement requires the entity to render the following performance obligations: a) To construct the franchisee's stall with stand-alone selling price of P200,000 b) To deliver 10,000 units of raw materials to the franchisee with stand-alone selling price of P250,000 c) To allow the franchisee to use the entity tradename for a period of 10 years starting January 1, 2020 with stand-alone selling price of P50,000. On June 30, 2020, the entity completed the construction of the franchisee's stall. As of December 31, 2020, the entity was able to deliver 3,000 units of raw materials to the franchisee. For the…1. On December 31, 2020, Rice, Inc. authorized Graft to operate as a franchisee for an initial franchise fee of P150,000. Of this amount, P60,000 was received upon signing of the agreement and the balance, represented by a note, is due in three annual payments of P30,000 each beginning December 31, 2021. The present value on December 31,2020 of the three annual payments appropriately discounted is P72,000. According to the agreement, the non- refundable down payment represents a fair measure of the services already performed by Rice; however, substantial future services are required of Rice. Collectability of the note is reasonably certain. a. in Rice’s December 31, 2020 balance sheet, unearned franchise fees from Graft’s franchise should be reported as?1. On December 31, 2020, Rice, Inc. authorized Graft to operate as a franchisee for an initial franchise fee of P150,000. Of this amount, P60,000 was received upon signing of the agreement and the balance, represented by a note, is due in three annual payments of P30,000 each beginning December 31, 2021. The present value on December 31,2020 of the three annual payments appropriately discounted is P72,000. According to the agreement, the non-refundable down payment represents a fair measure of the services already performed by Rice; however, substantial future services are required of Rice. Collectability of the note is reasonably certain. a. in Rice’s December 31, 2020 balance sheet, unearned franchise fees from Graft’s franchise should be reported as? 2. Levi and Zeke agreed on a joint venture to purchase and sell car accessories. Their contract stipulates that the participants shall contribute P25,000 each to be used in purchasing the merchandise, share equally in any gain or…
- On January 1, 2018, an entity granted a franchise to a franchisee. The franchise agreement required the franchisee to pay a nonrefundable upfront fee in the amount of P800,000 and on-going payment of royalties equivalent to 5% of the sales of the franchisee. The franchisee paid the nonrefundable upfront fee on January 1, 2018. In relation to the nonrefundable upfront fee, the franchise agreement required the entity to render the following performance obligations: · To construct the franchisee’s stall with stand-alone selling price of P400,000. · To deliver 20,000 units of raw materials to the franchisee with stand-alone selling price of P500,000. · To allow the franchisee to use the entity tradename for a period of 10 years starting January 1, 2018 with stand-alone selling price of P100,000. On June 30, 2018, the entity completed the construction of the franchisee’s stall. On December 31, 2018, the entity was able to deliver 6,000 units of raw…Green Inc. granted a franchise to Goblin Inc. to operate its registered business of barbershop. The contract was signed on January 1, 2020 with initial franchise fee of P500,000 payable in P200.000 cash and the balance in five equal semi-annual installments every June 30 and December 31. The noninterest bearing promissory note (reasonably assured) has implicit rate of 10% (PV Factor-4.32948). The contract provides that Goblin Inc. shall pay a contingent franchise fee equal to 5% of the revenue from the barber shop. Goblin Inc. reported a revenue in the amount of P100.000 during 2020. Green Inc. has substantially performed all the services required under the franchise contract. What is the total income to be recognized by Green Inc. for the year ended December 31, 2020? On January 1, 2020, a franchisor entered into a franchise agreement with a franchisee. The contract requires the franchisee to pay a non-refundable upfront fee of P900,000 at the date of contract signing and on-going…ABC sells franchise arrangement throughout La Trinidad and Itogon. Under a franchise agreement, ABC receives 1,000,000 in exchange for satisfying the following separate performance obligations: franchisees have a ten year right to operate as an ABC retail establishment once it started its operation; franchisees receive an ABC building and necessary equipment; franchisees receive initial training and certification as an ABC retail. The 1,000,000 is payable with a down payment of P500,000 on August 1, 2021 with the balance will be payable in five equal annual payments with an interest of 10% starting January 1, 2022. The stand-alone selling price of the initial training and certification is P100,000 and P400,000 for the building and equipment. ABC estimates that the stand-alone selling price of the ten-year right to operate as a franchise using the residual approach. ABC received P500,000 on August 1, 2021 from DDD, which represent the collection from the training, building and…