4. ABC Company operates a branch. Operating data for the home office and the branch for 2021 are as follows: (see image below) Determine the Branch December 31, 2021 Inventory at cost.
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4. ABC Company operates a branch. Operating data for the home office and the branch for 2021 are as follows: (see image below) Determine the Branch December 31, 2021 Inventory at cost.
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- On June 31, 2019, Majestic Co. acquired all of the common stock of Golden Compuny, which became a division of Majestic Co. Golden reported the following statenment of financial position at the time of the acquisition: Golden Company Statement of Financial Position Assets Equity and Liabilities Share capital-ordinary Retained eamings Accounts payable 3950.000 Plant assets (net) Inventory Receivables Cash Total assets $41,050,000 375,000 900,000 650.000 475.000 250.000 $2.325,000 Total equity and liabilities $2.125.000 An appraisal indicated that the fair value of the inventory was $355,000 and the fair value of the plant assets was $1,350,000. The agreed purchave price was $2,500,000, and this amount was paid in cash to the previous owners of Golden CompanyEntity A acquires equipment on January 1, 20x1. Information on costs is as follows: Purchase price, gross of P10,000 trade discount 800,000 Non-refundable purchase taxes 20,000 Delivery and handling costs 40,000 Installation costs 30,000 Present value of decommissioning and restoration costs 10,000 1.) How much is the initial cost of the equipment? A. P 890,000 B. P 820,000 C. P 900,000 D. P 870,000Corporation Partlal Starternent of Finandal Position 20-וו at Decamber 31, 2020 2020 2019 21-24 Bulldings and equipment Accumulated deprecation-bulldings and equlpmet Intanglble assets Accumulated amortizatlon Investment, non-trading €60 000 62 000 Inventory 48 100 37 000 Prepald expenses Accounts recelvable (net) 4 300 2 500 49 800 22 000 Divldend recelvable Cash 9 100 10 000 192 000 181 000 Total assets Share capital-ordinary Retained earnings Other comprehensive income Bond payable-lang-term Notes payable-bank, long-term Notes payable-bank, short-term €103 000 147 000 74 000 74 000 4 800 16 000 Unearned revenue 11 700 10 500 81 900 5 500 24 900 Accounts payable Interest payable Dividend payable 9 400 31 700 27 000 Total llabilities and shareholders' equlty Additlonal Information from the footnotes to the financlal statements reveals that - Net Income for 2020 amounts to C162 800: For the year 2020, the company recognlzed depreclation of €22 000, amortization of €4 200, and galn on…
- Zombie Berhad has the following trial balance at 31 December 2021: RM RM Revenue 7,602,504 730,600 208,000 Purchases Retums inwards Plant at cost Machinery at cost 10,712,000 4,940,000 Office equipment at cost 4,680,000 Accumulated depreciation-- Plant 936,000 988,000 -- Machinery -- Office equipment 520,000 Accounts payable Long-term borrowing 629,200 1,040,000 Accounts receivable 2,191,072 218,400 358,904 Inventory Cash and bank Administration expenses 520,000 26,000 Long tem borrowing interests Salaries and wages 252,720 Marketing expenses Discount allowed 208,000 72,800 Share capital Retained profits as at 1 Jan 2021 8,320,000 4,602,208 General Reserve 480,584 25,118.496 ...5/- Total 25.118.496Show the solution in good accounting form Orange Company’s ledger revealed the following account balances as of December 31, 2020: Unamortized discount on bonds payable P120,000; Organization costs P100,000; Losses in early years of company P450,000; Trademarks P750,000 Patents P150,000; Amount set up by BOD as goodwill P300,000. How much should be presented as intangible assets shown In the statement of financial position?An entity acquired a machine and incurred the following costs: Cash paid for machine, including VAT of 896,000 96,000 Cost of transporting machine Cost of installation 30,000 50,000 Cost of testing machine 40,000 Cost of safety rails and platform surrounding 60,000 machine Cost of water device to keep machine cool 80,000 Cost of adjustment to machine to make it operate more efficiently Cost of repairing damage during installation 75,000 45,000 Cost of spare parts to cover breakdowns 155,000 65,000 Estimated dismantling cost to be incurred as required by contract Insurance cost for the current year 15,000 Cost of training personnel who will use the 25,000 machine What total amount should be capitalized as cost of the machine?
- Exchange of Similar Assets On May 1, 2021, Equipment with a Cost of $50,000 and Accumulated Depreciation of $40,000 is exchanged for similar Equipment with a cost of $60,000 and a trade in allowance of $15,000. What is the amount of the Gain or Loss on the Exchange? Gain of $5,000 ObLoss of $5,000 Gain of $10,000 Od Loss of $10,000How much should be recorded as the purchase price of theindividual PPE items: For items 18 to 22, identify the amount to be included asEquipment 18. Payment for injuries to third‐parties not covered byinsurance – P200,00019. Freight amounted to P50,000 and freight insuranceamounted to P5,000.20. Site preparation of P100,000 and installment cost ofP75,000.21. Test run cost which includes P10,000 materials, P15,000direct labor cost, P1,000 allocated supervisor’s salary andother overhead cost of P5,000. The good produced was soldfor P30,000.22. Value‐added tax amounting to P100,00023. Import tax of P30,00The following trial balance relates to Golden Ltd at 30th September 2018GHS'000GHS'000Sales (a)760,000Material purchases (b) 128,000Production labour (b) 248,000Factory overheads (b) 160,000Distribution costs 28,400Administrative expenses (c) 92,800Finance costs 700Investment income1,600Leased property - at cost (b) 100,000Plant and equipment - at cost (b) 89,000Accumulated amortisation/depreciation at 1/10/2017- leased property20,000- plant and equipment29,000Equity investments (e) 36,000Inventory at 1/10/17 93,400Trade receivables 67,100Trade payables55,600Bank4,600Stated capital (GHS0.2)100,000Income surplus (1/10/2017)67,200Deferred tax (f)5,4001,043,4001,043,400The following notes are relevant:(a) Sales include goods sold and dispatched in September 2018 on a 30-day right of return basis. Their sellingprice was GHS4.8m and they were sold at a gross profit margin of 25%. In the past, Golden Ltd’scustomers have always met their obligations under this type of agreement.(b)…
- Refer to the following data of OCT2023CPACompany: Assets to be realized 1,375,000Assets acquired 825,000 Liabilities liquidated 1,875,000Assets realized 1,200,000Liabilities not liquidated 1,700,000 Assets not realized 1,375,000Llabilities assumed 1,625,000Llabilities to be liquidated 2,250,000 Supplementary charges 3,125,000 Supplementary credits 2,800,000 Compute the beginning cash balance assuming that the ending balance of ordinary share and retained earnings are P1,200,000 and (400,000), respectivelyProperty 1This property was purchased at a cost of R4 500 000 on 1 January 2019. An upfront payment ofR450 000 was made on this date and the remaining R4 050 000 is payable on 31 December 2019.A discount rate of 10% is applicable. The present value factor for R1 at 10% per annum is 0.909.5% of the property is used by the company as its sales and administration office. This isconsidered to be an insignificant portion of the property. The remaining 95% is leased to thirdparties under operating leases. The property cannot be apportioned off and sold separately.Transfer duties of R328 000 plus other abnormal costs of labour amounting to R50 000 wereincurred in getting the property ready to be let out to third parties.During the year, rentals of R775 000 were earned and repairs and maintenance expenses ofR65 000 were paid.The fair value of the property at year end on 31 December 2019 was R5 400 000. Q.2.2 If the company chooses to use the fair value model for measurement after recognition…On April 2, 2020 Happy Company purchased MDSE from Enjoy Corporation with a list price of P450,000; less:10% 2/10, n/30. Terms is FOB shipping point freight prepaid. Amount of freight paid by Enjoy Corporation is P6,500. Happy Company returned to Enjoy Corporation damaged MDSE worth P10,000 at list price. On April 12, Happy Company paid in full the account with Enjoy Corporation. Prepare the correct entries to record the above transaction in the books of Happy Company. Happy uses the periodic system of recording inventory.