Illustration: Goods in Transit ABC Co. purchased goods with invoice price of P1,000 on account on Dec. 27, 2019. The related shipping costs amounted to P10. The seller shipped the goods on Dec. 31, 2019. ABC Co. received the goods on Jan. 2, 2020 and settled the account on Jan. 5, 2020. Prepare journal entries under the following terms of

Q: McKenzie Sales, Limited Comparative Income Statement Last Year $ 5,548,000 Sales This Year $…

A: In a common size income statement, each line item of the income statement is expressed as a…

Q: A value stream has three activities and two products. The units produced and shipped per week are 50…

A: ABC costing allocates the cost and overhead on reasonable basis. The cost allocation is more…

Q: On the date of incorporation, the condensed balance sheet of Alom Partnership showed the following:…

A: Shareholders equity is the total amount attributable to the shareholders of the company. It includes…

Q: Rasheed works for Company A, earning $382,000 in salary during 2021. Assuming he is single and has…

A: The wage limit for social security tax for 2021 = $142800

Q: You are required to calculate the cost per unit of each product A and B based on: (0) Traditional…

A: Solution:- i)Calculation of Traditional method of charging overheads as follows under:-

Q: Which of the following cannot be characterized as a guaranteed payment to a partner? A specified…

A: When two or more parties agree to manage and operate a business by sharing profits and losses in the…

Q: On June 23, 200C, Pinoy Trading owned and operated by Phil was incorporated. On this date, the…

A: Shareholders equity is one of the important element of balance sheet of the business. It means total…

Q: On January 1, 2009, (A) Co. acquired all of the common stock of (B) Corp. For 2009, (B) earned net…

A: The term which explains the consolidation or combining of two or more companies or financial assets,…

Q: The following data apply to Stratford Ltd: Direct materials inventory, beginning of the year $5,500…

A: Formula: Direct materials used = Beginning Direct materials + Purchases - Ending Direct materials

Q: The following data were taken from the financial statements of Hunter Inc. for December 31 of two…

A: Ratio analysis means where the various ratio can be found out with different name and meaning and…

Q: Rizzo Corp. began operations on Jan. 1, 2023.  Rizzo Corp. is authorized to issue 250,000 shares of…

A: Treasury stock is to be measured at cost (cost of repurchase value)  Any difference between reissue…

Q: Sheridan Corporation had net income of $470000 and paid dividends to common stockholders of $34780…

A: Given,  Net income = $470,000 Dividends paid to common stockholders = $34,780

Q: liquidation of her partnership interest. Item Fair Value Partnership's Basis Cash 30,000 30,000…

A: It is observed that all money received on final settlement is on allocable or payable basis.

Q: Happy Selling's had the following accounts atyear end: Cash-250,000, Accounts Payable-70,000,…

A: Introduction: Current Assets: The Assets which can be easily converted in to cash called as Current…

Q: A parent company purchased an 80% interest in its subsidiary several years ago with no AAP (i.e.,…

A: Non controlling stakeholders interest = 100% - 80% (parent company interest) =20%

Q: Illustration: Cost of Purchase ABC Co., a VAT player, imported goods from a foreign supplier and…

A: cost of purchase include all the purchase costs plus the import duties and non refundable taxes and…

Q: A 60-day, 5% note for $10,200, dated April 15, is received from a customer on account. The face…

A: The face value of the note is $10200

Q: crease an

A: The shareholders' will be considered as the owners of the company. The bond holders, and debenture…

Q: Montello Inc. purchases a delivery truck for $14,000. The truck has a salvage value of $2,000 and is…

A: Only first year's miles driven is given. So, Depreciation is calculated only for first year

Q: Anderson Foods produces spécialty soup sold in jars. The projected sales in dollars and jars for…

A: Formula: Desired ending inventory  =Following month sales  units x 25% Beginning inventory = Current…

Q: October 3 Wrote off a $1,500 balance due from a customer who went bankrupt. December 29 Recorded…

A: While preparing closing Entry for Income statement accounts, all the Revenues and Expenses are…

Q: If individual taxpayers are the shareholders of Cameron Corporation an Cameron Corporation is a…

A: There are many types of taxes one tax on individual tax payer and other is tax on corporation and…

Q: The ABC Partnership agreement provides for guaranteed payments for services rendered of $70,000,…

A: The concept of partnership firm is where two or more partners or individuals jointly come forward to…

Q: Staycate Travels Inc. reports a gross profit of $35,000, interest expense of $4,000, a tax rate of…

A: Formula used: Earnings after Tax = [ Gross profit - Interest expense - Depreciation expense ] x [ 1…

Q: Shaffer Corporation issued 140, $1,000, 10% convertible bonds in 2019 at face value. Each bond is…

A: EPS termed as Earnings per share which refers to the monetary value of the earnings per share…

Q: On July 1, 2021, Hale Kennels sells equipment for $233000. The equipment originally cost $596000,…

A: Introduction:- The following formula used to calculate depreciation usi g straight line method as…

Q: Rizzo Co. has Net Income of $279,000 for 2024. Over the past two years, the company had outstanding…

A: Earning per share represents the earnings of the company held in hands of each shareholder of the…

Q: (Credit account titles are automatically indented when the amount is entered. Do not indent…

A: Under double entry system of bookkeeping one account is debited and other is credited. Assets and…

Q: es should be made? a.debit Allowance for Doubtful Accounts, $800; credit Bad Debt Expense, $800…

A: Bad debts are very important in accounts.They form a part of profit & loss statement in…

Q: SLO-3.1. The financial statement that reports assets, liabilities, and owner's equity is the OIncome…

A: The financial statements are the reports prepared to record the financial activities of the business…

Q: The following accounts of Rex Company are as follows: Sales P480,000; Cost of goods sold P300,000;…

A: Net Income is the measure of profitability of the business. This is calculated by deducting all type…

Q: In a period, opening stock is 12,600 units and closing stock is 14, 100 units. The profit using…

A: In order to determine the fixed overhead absorption rate, the budgeted fixed overheads are required…

Q: 1.1.abc Limited lease a building worth R4 million to Quintin Limited under an operating lease for 10…

A: As per IAS 40, an Investment Property is any property which has been held by the entity for the…

Q: Tara is the sole shareholder of an S Corporation. Tara's salary and bonus from the S Corporation is…

A: These taxes are often called as self employment taxes. If one forms a S Corporation, some of these…

Q: Jack is a 20% partner in a service partnership. His outside basis is $80,000 on January 1st of 2021.…

A: given   Jack is a 20% partner in a service partnership. His outside basis is $80,000 on January 1st…

Q: Flyer Company has provided the following information. Cash sales, $325,000 Credit sales, $850.000…

A: Formula: Total sales = Cash sales + Credit sales. Cash and credit sales combined called as Credit…

Q: Assume the functional currera O a $364,000 Ob $372,000 Oc$380,000

A: It is the income that businesses get from normal business activities before deducting the costs,…

Q: poration had pts vices from a dome

A: Explanation - 1. Income Statement - This statement shows the income earned and loss incurred by the…

Q: XYZ company provided the following information: $30,000 Salms Accounts payable Seling expenses 3,000…

A: The gross profit is calculated as difference between sales and cost of goods sold.

Q: 3) Aira Company reported gross payroll of P600,000 for the month of January. The entity paid the…

A: Payroll It is important to maintain the payroll process by the management which is distributed to…

Q: Shields Company is preparing its interim report for the first quarter ending March 31. The following…

A: The amount that will be reported in the first quarter =( $800000 + $350000 +$260000)/4  = $352500

Q: A company had 125,000 shares of common stock outstanding on January 1 and then sold 35.000…

A: Earnings per share is an financial ratio which was used to find the company's profitability. = Net…

Q: The auto repair shop of Quality Motor Company uses standards to control the labor time and labor…

A: Formula: Labor rate variance = (Actual hourly rate  - Standard rate per hour)*Actual hours worked…

Q: The company reported a current ratio of 2.1 and 2.22 as of December 31, 2020 and December 31, 202…

A: Liability is an obligation that an entity has to pay on some future date.

Q: 2) prepare the following journal entries!

A: Job costing is one of the method of costing under which all costs are assigned, accumulated and…

Q: The general ledger of Red Storm Cleaners at January 1, 2021, includes the following account…

A: In preparation of closing journal entries all temporary accounts are transferred Permanent accounts.…

Q: List the five basic steps in calculate the full production cost per unit using the ABC method

A: ABC is a modern approach whereby overhead costs are bifurcated based on the utilization of…

Q: In the year 2020, kim plastics sold 100,000 units of its product. Selling price per unit was 100.…

A: Operating Income = Contribution -Fixed cost Contribution = Sales - Variable cost Break even point =…

Q: Pittsburgh Aluminum Company uses a process cost system to record the costs of manu inventory of Work…

A: The expenditure that is incurred during the course of production to manufacture a good or to provide…

Q: Beginning inventory, purchases, and sales data for portable game players are as follows: Apr. 1…

A: Under FIFO Method, using perpetual inventory system, Cost of goods sold and value of ending…