. JBC Company, a car rental company, acquires vehicles with the intention of holding them as rental cars for limited period and then selling them. As of December 31, 2020, Car 1 was sold for P500,000 and Car 2 was also sold for P435,000. The carrying values of Car 1 and 2 were P150,000 and P130,000, respectively. What amount of gains or losses JBC Company should disclose in the Statement of Comprehensive Income in relation to the sale of cars above?
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1. JBC Company, a car rental company, acquires vehicles with the intention of holding them as rental cars for
limited period and then selling them. As of December 31, 2020, Car 1 was sold for P500,000 and Car 2 was also sold for
P435,000. The carrying values of Car 1 and 2 were P150,000 and P130,000, respectively.
What amount of gains or losses JBC Company should disclose in the Statement of Comprehensive Income in
relation to the sale of cars above?
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- On January 1, 2018, Prairie Enterprises purchased a parcel of land for $14,000 cash. At the time of purchase, the company planned to use the land for a warehouse site. In 2020, Prairie Enterprises changed its plans and sold the land. Required Assume that the land was sold for $15,540 in 2020. (1) Show the effect of the sale on the accounting equation. (2) What amount would Prairie report on the 2020 income statement related to the sale of the land? (3) What amount would Prairie report on the 2020 statement of cash flows related to the sale of the land? Assume that the land was sold for $13,160 in 2020. (1) Show the effect of the sale on the accounting equation. (2) What amount would Prairie report on the 2020 income statement related to the sale of the land? (3) What amount would Prairie report on the 2020 statement of cash flows related to the sale of the land?Refer to the information for Cox Inc. above. What amount would Cox record as depreciation expense for 2019 if the units-of-production method were used ( Note: Round your answer to the nearest dollar)? a. $179,400 b. $184,000 c. $218,400 d. $224,000Popeye Corporation traded in a vehicle for a new one priced at P740,000, receiving a trade-in allowance of P225,000 and paying the balance in cash. The old vehicle cost P600,000 and had accumulated depreciation of P400,000. Compute the gain or loss from disposal of Vehicle. (Use negative sign if your answer is loss)
- On May 1, 2020, Hug Company leased equipment to Rave Company which expires on May 1, 2021. Rave could have bought the equipment from Hug for P3,200,000 instead of leasing it. Hug's accounting records showed a carrying amount for the equipment on May 1, 2020 of P2,800,000. Hug's depreciation on the equipment in 2020 was P360,000.During 2020, Rave paid P720,000 in rentals to Hug for the 8-month period. Hug incurred maintenance and other related costs under the terms of the lease of P64,000 in 2020. After the lease with Rave expires, Hug will lease the equipment to another entity tor two years. What is the pretax income derived by Hug for 2020? a. 296,000 b. 360,000 C. 656,000 d. 720,000On January 1, 2021 Asset of Matalino Company was P2,500,000 and its liabilities was P800,000. By December 31, 2021 Asset of Matalino Company was P4,700,000 and its liabilities was P1,200,000. During the year the owner withdrew merchandise costing P100,000 with a sales value of P150,000. The owner also paid a P1,000,000 notes payable of the business with interest of 12% for nine months with a check drawn on a personal checking account. How much is the net income (loss) for Matalino Company as of December 31, 2021? Present solutions in good accounting form. No parenthetical solutions. Thanks and God bless!G5. Q. During fiscal 2019, Kroger sold its Turkey Hill Dairy business for a gain. What was the book value of Turkey Hill Dairy’s net assets that Kroger disposed of?
- What accounting assumption, principle, or constraint would Target Corporation use in each of the situations below? a. Target was involved in litigation over the last year. This litigation is disclosed in the financial statements. b. Target allocates the cost of its depreciable assets over the life it expects to receive revenue from these assets. c. Target records the purchase of a new Dell PC at its cash equivalent price.On December 31, 2020, Riverbed Inc. has a machine with a book value of $1,410,000. The original cost and related accumulated depreciation at this date are as follows. Machine $1,950,000 Less: Accumulated depreciation 540,000 Book value $1,410,000 Depreciation is computed at $90,000 per year on a straight-line basis. Presented below is a set of independent situations. For each independent situation, indicate the journal entry to be made to record the transaction. Make sure that depreciation entries are made to update the book value of the machine prior to its disposal. (a) Your answer is correct. A fire completely destroys the machine on August 31, 2021. An insurance settlement of $645,000 was received for this casualty. Assume the settlement was received immediately. (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.) Date Account Titles and…1. On November 4, 2020, GT Corporation sells a piece of its equipment. GT Corporation had initially purchased the equipment for $350,000. The company had recorded $230,000 in depreciation for this piece of equipment as of the date of sale. If GT Corporation receive $150,000 cash when they sell the equipment, they will report a November 2020 Income Statement; if they instead receive $100,000 cash when they sell the equipment, they will on their report a a. $150,000 gain; $100,000 gain. b. $80,000 gain; $130,000 loss. c. $30,000 loss; $20,000 gain. d. $30,000 gain; $20,000 loss.
- A vehicle which cost R100 000 and on which the accumulated depreciation is R60 000 on 31 December 2020 (year end) is sold on the 31st March 2021 for R45 000 to Mr Hamilton. It was agreed that he would pay 50% in cash and the balance on the 30th June 2021. Depreciation is written off at 20% per annum using the diminishing balance method. The entity is not registered for VAT. Required: Prepare all the journal entries to record the disposal of the vehicle on the 31st March 2021. Journal narrations are required. Document numbers are not required.Please help me by showing your solution in good accounting form. Thank you! NOREEN INC, a truck dealer, sells a truck on January 1, 2019, to MENDOZA INC for P3,000,000. NOREEN agrees to repurchase the truck on December 31, 2020 for P3,630,000. 1. Assuming a 10% is imputed in the agreement, how much is the liability of NOREEN on January1, 2019?A. 1,500,000 C. 3,000,000B. 1,815,000 D. 3,630,000 2. Using the information above, what is the interest expense for 2019?A. None C. 330,000B. 300,000 D. 630,000 3. How much should NOREEN INC record interest and retirement of its liability to MENDOZAINC on December 31, 2020?A. None C. 330,000; 3,630,000B. 300,000; 3,600,000 D. 630,000; 3,630,000Mumtaz Bhd is a listed company engaged in developing housing and industrial estate. Below is the trial balance as at 30 June 2020. Debit Credit RM’000 RM’000 Investment property at fair value 28,660 Intangible assets on 1 July 2019 18,800 Tax recoverable on 1 July 2019 800 Revenue 158,920 Freehold land at valuation 13,400 Buildings at cost 28,400 Plant and machinery at cost 204,400 Accumulated depreciation as at 1 July 2019: - building 4,260 - plant and machinery 85,140 Inventory on 30 June 2020 4,300 Trade receivables 7,860 Cash at bank 10,900 Ordinary shares of RM1 each 60,000 Distribution costs 4,460 Retained earnings as at 1 July 2019 6,380 Asset revaluation reserve 12,700 Cost of sales 43,780 Administrative expenses 8,560 10% Debentures 31,660 Finance costs…