0,000 shares f
Q: On January 1, 2021, Illuminati Company purchased 10% bonds with a face amount of P3,000,000. The bon...
A: Bond Valuation Bond can be valued either in par value or in discount or in premium as well. The cal...
Q: Last month when Holiday Creations, Incorporated, sold 41,000 units, total sales were $164,000, total...
A: Formula: Contribution margin ratio = ( Fixed cost / Sales ) x 100
Q: Citricacid plc budgets during its first year of operations to produce and sell 38,160 litres of prod...
A: The profit is calculated as difference between sales revenue and total costs.
Q: The company provides for an allowance for bad debts equivalent to 3% of total receivables. Receivabl...
A: Provision of bad debts not allowed for taxation purpose. Following is the condition of bed debts al...
Q: What is the process for developing a budgeted balance sheet?
A: The budgeted balance sheet is a report that a firm uses to examine the estimation of assets, liabili...
Q: Which of the following is correct? a) Fringe benefits are always subject to fringe benefit tax. b) ...
A: Fringe benefits are the one which are allowed to the employees by their employers as an incentive fo...
Q: Zen Company prepares a monthly master budget. Data for the July master budget are given below. The J...
A: Working:
Q: Suppose Columbia Sportswear Company (USA) had accounts receivable of $205,025,000 at the beginning o...
A: Cash receipts from the customers = Beginning Accounts Recivable + Sales revenue - Ending Accounts Re...
Q: - Company purchased merchan paid $200 freight and sent Well harge of $200. Wellgrow uses t returned ...
A: February 19: merchandise inventory account Dr$5200 To account payable$5200 (Being amount payable inc...
Q: Josey Company entered into a contract to acquire a new machine for its factory. The machine, which h...
A: Initial cost of Machine: In calculating the initial cost of an asset, all of the elements that may b...
Q: At the beginning of Year 1, Copeland Drugstore purchased a new computer system for $170,000. It is e...
A: Formula: Straight line method depreciation = ( Asset cost - Salvage value ) / Useful life
Q: On January 1, 2022, Bumili Co. purchased 10,000 shares of Nabili, Inc. for P1,000,000. Commission an...
A: Unrealized Gain on Investment: In accounting, an unrealized gain is a rise in the value of an asset ...
Q: *see attached What is the interest income for the current year? a. 1,297,905 b. 1,357,905 c. 900,0...
A: Lease means giving out the assets by lessor to lessee to use that assets in return of rent. Financia...
Q: On January 1, 2022, Bumili Co. purchased 10,000 shares of Nabili, Inc. for P1,000,000. Commission an...
A: Unrealized Gain on Investment: In accounting, an unrealized gain is a rise in the value of an asset ...
Q: . Taxpayer incurred the following for the taxable period: Supplies purchased P80,000 Supplies used 2...
A: Under Cash basis, expenses shall be Deductible only when actually paid. Amortization and unpaid exp...
Q: EXPLAIN THE MODE OF PAYMENT IN FOREIGN CONTRACTS.
A: A foreign exchange contract is a legal arrangement in which the parties agree to exchange a defined ...
Q: 26 The process of measuring, monitoring, and minimizing prevention, appraisal, internal failure, and...
A: Prevention cost is amount of expense incurred to reduce defects in products and services.
Q: Helix Corporation uses the weighted-average method in its process costing system. It produces prefab...
A: Solution: Units transferred out during the month of May = Units in beginning WIP + Units started - U...
Q: Balance Sheet The account balances of Paradise Travel Service for the year ended May 31, 20Y6, follo...
A: Solution Retained earning is the part of the company's profit which is not distributed as a dividend...
Q: On July 1, 2020, ABC Corporation invested in the stocks of XYZ foreign corporation, by acquiring 10,...
A: Capital Gain on Shares: It is possible to realise a capital gain on the appreciation of an asset or ...
Q: The standard direct labour cost of product C is as follows: Three hours of skilled labour at £4 per ...
A: Formula: Direct labour total variance = Actual cost - Standard cost
Q: $10,000 $12,000 Service Revenue Cash Accounts Receivable $3,000 Office Supplies Rent Expense Salarie...
A: Introduction: Balance sheet: All Assets and liabilities are shown in Balance sheet. It tells the net...
Q: DEFINE AND INDICATE TYPES OF DUMPING.
A: Dumping: Dumping refers to the reduced price of the products at which price the exporters exports go...
Q: On January 1, 2021, Demeanor Company purchased bonds with face amount of P5,000,000 to be held as fi...
A: Bond is an investment security which provides a fixed interest income to the bondholders. The intere...
Q: Govender Wholesalers entered into the following transactions during February 2016 (IGNORE VAT). They...
A: Date Asset Liability Equity 01-02-16 +640000 +640000 08-02-16 +153...
Q: Explain the corporate characteristic termed “no mutual agency” Explain the corporate characteristic ...
A: Corporation is a form of business in which group of persons come together to do the business for the...
Q: The maternity benefit of the female employee under RA 11210, otherwise known as the 105-day Expanded...
A: Under the Expanded Maternity Leave Law RA 11210, the SSS pays to the qualified SSS members : cash be...
Q: A 12% Pl face value bond with interest payable June 30 and December 31, which matures on June 30, 20...
A: Total cash received by June 30, 2022 = Redemption value of the bonds + Semi-annual interest on the b...
Q: Blossom Leasing Company agrees to lease equipment to Blue Corporation on January 1, 2020. The follow...
A: For lessor a lease can be recorded as finance lease in two ways as direct lease or sale type lease. ...
Q: Gross salaries RATA PERA Additional Compensation Christmas bonus
A: In this question, we have to compute taxable compensation income.
Q: The management of Russel Ltd. is trying to decide whether it can increase its c During the current y...
A:
Q: Suppose Columbia Sportswear Company (USA) had accounts receivable of $205.025,000 at the beginning o...
A: Cash Receipts from Customers - It is the calculation from the previous years receivables and current...
Q: On June 31, 2016, Oriental Company had outstanding 8% P 1,000,000 face amount, 15-year bonds maturin...
A: Bond can be defined as financial instruments which is a source of capital for the companies as well ...
Q: Dow Deep Mining Co acquired mineral rights for $56,000,000. The mineral deposit is estimated at 70,0...
A: Formula: Depletion rate per ton = Acquired mineral rights value / Total estimated Tons
Q: McDermott Company has developed a new industrial component called IC-75. The company is excited abou...
A: Reference Value- A reference value is the recognized and accurate measurement for each part. The ref...
Q: Shiba Company leased an office to Cate Company for a five- year term beginning January 1, 2020. Unde...
A: Rent for first year = 800,000 Lease term = 5 years Rent for remaining year = 1,250,000 Lease grante...
Q: The Board of Directors were worried over the dwindling financial performance and precarious financi...
A: Ratio Analysis - The ratio is the technique used by the prospective investor or an individual or str...
Q: An equipment cost P5523,602 and has an estimated life of 18 years. Solve for the depreciation using ...
A: Under Double Declining Balance method of depreciation, the depreciation is calculated using double t...
Q: Dow Deep Mining Co acquired mineral rights for $56,000,000. The mineral deposit is estimated at 70,0...
A: Formula: Depletion Rate per ton = Cost of Mining Rights/ Estimated mineral deposit in tons
Q: What is the maximum contribution that an employer can make to an employee’s SIMPLE account?
A: A SIMPLE IRA (Savings Incentive Match Plan for Workers) plan enables employees as well as employers ...
Q: Haribo has manufactured gummy bears, since 1920. Those bears are currently made in 16 plants around ...
A: given At the end of the month, approximately what percentage complete will gummy bears be with res...
Q: At December 31, 2019, the ledger of Aulani Company includes the following accounts, all havingnormal...
A: No. Account Titles and Explanation Debit Credit 1 Sales Revenue $59,000 Income Summary $59...
Q: X derived the following income in 2020, choose A if the income is subject to regular income tax, B i...
A: Capital Gain on the Sale of stocks directly to Buyer : p 30000 Ordinary gain on sale of old of...
Q: "The valuation of real estate is based on a cobination of facts, assumptions and judgement" critical...
A: Investment Valuation is a method which has been adopted by the company or the investor to value the ...
Q: Jana is a shareholder in Jasmine Company, a partnership. Her share of the business's current ordinar...
A: The association made by two or more persons where each person have right to get their share of profi...
Q: The Board of Directors were worried over the dwindling financial performance and precarious financia...
A: 3) Debt Equity Ratio =Long term debt +long term provisionsshareholder's equity ...
Q: Vergo Company acquired a motor vehicle for P1,000,000 for the use of one of its on-call employees. C...
A: Fringe Benefit Taxes To Calculate the Fringe benefit taxes in Philippines it depends upon the nature...
Q: Blossom Leasing Company agrees to lease equipment to Blue Corporation on January 1, 2020. The follow...
A: Particulars Amount Fair value of machine 737,000 Expected residual value 60,000 PV factor (10...
Q: The Regal Cycle Company manufactures three types of bicycles-a dirt bike, a mountain bike, and a rac...
A:
Q: At the beginning of January 2021, Luminiscence Company purchased ten-year bonds with a face amoun of...
A: Purchase price of bonds are the same as its current price. Price of a bond = sum of all present val...
On July 1, 2020, ABC Corporation invested in the stocks of XYZ foreign corporation, by acquiring 10,000 shares at P12/share. On December 20,2020, XYZ declared a 20% stock dividend payable on January 15, 2021. On January 2, 2021, ABC Corporation sold 10,000 shares for P13/share.Compute the net
Step by step
Solved in 3 steps
- On January 1, 2019, Kittson Company had a retained earnings balance of 218,600. It is subject to a 30% corporate income tax rate. During 2019, Kittson earned net income of 67,000, and the following events occurred: 1. Cash dividends of 3 per share on 4,000 shares of common stock were declared and paid. 2. A small stock dividend was declared and issued. The dividend consisted of 600 shares of 10 par common stock. On the date of declaration, the market price of the companys common stock was 36 per share. 3. The company recalled and retired 500 shares of 100 par preferred stock. The call price was 125 per share; the stock had originally been issued for 110 per share. 4. The company discovered that it had erroneously recorded depreciation expense of 45,000 in 2018 for both financial reporting and income tax reporting. The correct depreciation for 2018 should have been 20,000. This is considered a material error. Required: 1. Prepare journal entries to record Items 1 through 4. 2. Prepare Kittsons statement of retained earnings for the year ended December 31, 2019.During 2021, Anthony Company purchased debt securities as a long-term investment and classified them as trading. All securities were purchased at par value. Pertinent data are as follows: The net holding gain or loss included in Anthonys income statement for the year should be: a. 0 b. 3,000 gain c. 9,000 loss d. 12,000 lossFisafolia Corporation has gross income from operations of $210,000 and operating expenses of $160,000 for 2019. The corporation also has $30,000 in dividends from publicly traded domestic corporations in which the ownership percentage was 45 percent. Calculate the corporation's dividends received deduction for 2019. $_____________ Assume that instead of $210,000, Fisafolia Corporation has gross income from operations of $135,000. Calculate the corporation's dividends received deduction for 2019. $___________ Assume that instead of $210,000, Fisafolia Corporation has gross income from operations of $158,000. Calculate the corporation's dividends received deduction for 2019. $_____________
- During 2021 Blossom Company purchased 8700 shares of Nash Inc. for $17 per share. During the year Blossom Company sold 1850 shares of Nash, Inc. for $22 per share. At December 31, 2021 the market price of Nash, Inc.’s stock was $15 per share. What is the total amount of gain/(loss) that Blossom Company will report in its income statement for the year ended December 31, 2021 related to its investment in Nash, Inc. stock? $-8150 $-17400 $-4450 $9250ABC Co. purchased 10,000 shares (2% ownership) of DEF Co. on February 14, 2020. ABC Co. received a share dividend of 2,000 shares on April 30, 2020, when the market value per share was P35. DEF Co. paid a cash dividend of P2 per share on December 15, 2020. In its 2020 income statement, what amount should ABC Co. report as dividend income?Philip Company purchased 250,000 ordinary shares of Smiley Company for P40 per share on April 2, 2020. Smiley Company had 1,000,000 ordinary shares outstanding during 2020, paid cash dividends of P600,000 during 2020, and reported net income of P2,000,000 for 2020. What amount should Philip Company as report revenue from investment for 2020?
- . During 2022, ABC Corp. acquired 500 shares of XYZ stock at P30 per share. ABC accounted for the stock as FVOCI financial assets. The market price per share of ABC's stock as of December 31, 2022 and 2023, is P22.50 and P39.50, respectively. How much-unrealized gain or loss on long-term investments should ABC report on its December 31, 2022, statement of comprehensive income? Use negative sign for the unrealized loss How much unrealized gain or loss on long-term investments should ABC report on its December 31, 2022, stockholder’s equity? Use negative sign for the unrealized loss How much-unrealized gain or loss on long-term investments should ABC report on its December 31, 2023, statement of comprehensive income? Use negative sign for the unrealized loss How much-unrealized gain or loss on long-term investments should ABC report on its December 31, 2023, stockholder’s equity? Use negative sign for the unrealized lossThe balance in the retained earnings of HAWKEYE Corporation on December 31, 2020 and 2021 respectively are P720,000 and P582,000. The net income for 2021 was P500,000. A share dividend was declared and distributed which increased ordinary share capital by P200,000 and share premium by P110,000. A cash dividend was declared and paid. What is the amount of cash dividends declared and paid? a. ₱ 638,000 b. ₱ 442,000 c. ₱ 328,000 d. ₱ 248,000On January 1, 2020, Windsor Company purchased 6,100 shares of Kusher Company stock for $439,200. Windsor's investment represents 30 percent of the total outstanding shares of Kusher. During 2020, Kusher paid total dividends of $152,000 and reported net income of $456,000. What revenue does Windsor report related to this investment and what is the amount to be reported as an investment in Kusher stock at December 31? Revenue $ Investment in Kusher stock at December 31 $
- Use the info below to answer the following questions: On January 2, 2021, Pirate, Inc. purchased a 30% interest in Tee Corp. for $3, 000, 000 cash. During 2021, Tee's net income was S3, 500, 000 and it paid dividends of S1, 000, 000. Pirate's 2021 income from Tee was: Pirate's Equity Investment balance in Tee at December 31, 2021 will be:During 2021 Carla Vista Company purchased 10700 shares of Kingbird Inc. for $37 per share. During the year Carla Vista Company sold 2850 shares of Kingbird, Inc. for $42 per share. At December 31, 2021 the market price of Kingbird, Inc.’s stock was $35 per share. What is the total amount of gain/(loss) that Carla Vista Company will report in its income statement for the year ended December 31, 2021 related to its investment in Kingbird, Inc. stock? $-7150 $-1450 $-21400 $14250on 1/1/20, ABC Corp bought 500 shares of XYZ Corp for $10,000. XYZ Corp has 25,000 shares outstanding. on 6/1/20, XYZ pays a $100,000 cash dividend to all shareholders. On 12/31/20, XYZ is trading at $22/share and during 2020 XYZ reported net income of $250,000. What is the total effect on net income for ABC from this investment? Assume ABC reports annually on a calendar year basis.
