Assessment 2 (page 2 of 2)

On 1 January 2020 a company purchased some plant.   The invoice showed Cost of plant £61,000 Delivery of factory £850 One-year warranty covering breakdown during 2020 £700 Import duty £3,250 Installation fees £2,000   Modifications costing £3,150 were necessary to enable the plant to be installed. What amount should be capitalised for the plant in the company's accounting records?

on march 1 2025 pechstein company contracted to construct a factory building for Fabrik Manufacturing Inc., for a total contract price of $8,400,000.

on march 1 2025 pechstein company contracted to construct a factory building for Fabrik Manufacturing Inc., for a total contract price of $8,400,000.

Exercise 6-8 (Algo) Performance obligations; customer option for additional goods or services [LO6-4, 6- 5] On May 1, 2021, Meta Computer, Inc., enters into a contract to sell 4,500 units of Comfort Office Keyboard to one of its clients, Bionics, Inc., at a fixed price of $76,500, to be settled by a cash payment on May 1. Delivery is scheduled for June 1, 2021. As part of the contract, the seller offers a 25% discount coupon to Bionics for any purchases in the next six months. The seller will continue to offer a 5% discount on all sales during the same time period, which will be available to all customers. Based on experience, Meta Computer estimates a 50% probability that Bionics will redeem the 25% discount voucher, and that the coupon will be applied to $45,000 of purchases. The stand-alone selling price for the Comfort Office Keyboard is $19.00 per unit. Required: 1. How many performance obligations are in this contract? 2. Prepare the journal entry that Meta would record on May 1,…

Exercise 6-8 (Algo) Performance obligations; customer option for additional goods or services [LO6-4, 6- 5] On May 1, 2021, Meta Computer, Inc., enters into a contract to sell 5,500 units of Comfort Office Keyboard to one of its clients, Bionics, Inc., at a fixed price of $94,600, to be settled by a cash payment on May 1. Delivery is scheduled for June 1, 2021. As part of the contract, the seller offers a 25% discount coupon to Bionics for any purchases in the next six months. The seller will continue to offer a 5% discount on all sales during the same time period, which will be available to all customers. Based on experience, Meta Computer estimates a 50% probability that Bionics will redeem the 25% discount voucher, and that the coupon will be applied to $44,000 of purchases. The stand-alone selling price for the Comfort Office Keyboard is $19.20 per unit. Required: 1. How many performance obligations are in this contract? 2. Prepare the journal entry that Meta would record on May 1,…

Answer required question from a,b,c,d, and e  show workings! thanks!

How much should Thelma report as net investment in lease on December 31, 2022 statement of financial position?  a. P 291,049 b. P 320,154 c. P 321, 049 d. P 331, 049   please explain the answer and provide the solution in good accounting form.

Exercise 6-24 (Algo) Long-term contract; revenue recognition over time; solve for unknowns [LO6-9] In 2021, Long Construction Corporation began construction work under a three-year contract. The contract price is $2,200,000. Long recognizes revenue over time according to percentage of completion for financial reporting purposes. The financial statement presentation relating to this contract at December 31, 2021, is as follows: Balance Sheet Accounts receivable (from construction progress billings) Construction in progress. Less: Billings on construction contract Cost and profit of uncompleted contracts in excess of billings Income Statement Income (before tax) on the contract recognized in 2021 Required: 1. What was the cost of construction actually incurred in 2021? $ 160,000 (152,000) 1. Actual costs incurred in 2021 2. Cash collections in 2021 3. Estimated cost to complete 4. Estimated percentage $26,000 $36,000 8,000 2. How much cash was collected in 2021 on this contract? 3. What…

a. P150,000   b. P450,000   c. P900,000   d. Answer not given

QUESTION 1: A) A Ltd sells computer software to B Ltd on 1 Jul 20X8 for £800,000, a price which includes the provision of a support service for 2 years. A Ltd sells this software to other customers without the support service for £700,000 and has other service contracts providing similar support at a price of £150,000 per annum. What should be recognised for the year ended 31 December 20X8 according to IFRS 15 Revenue from Contracts with Customers?   B) Venus Ltd has a contract to supply catering services to a retail company and it is to be supplied evenly over two year period from 1 Oct 2017- 31 Sep 2019. The agreed contract price is £240,000. The year end is 31 Dec. Identify what to recognize in Income Statement for 31 Dec 2018?   C) A furniture retailer sells goods to a customer for £80,000 on 1 January 2020 Delivery will take place immediately and the company has given the customer an interest-free credit period of 36 months. Discount rate is 6%. What is recognized for the year-end…

Testbank Multiple Choice Question 79 Blossom Corporation enters into an agreement with Yates Rentals Co. on January 1, 2021 for the purpose of leasing a machine to be used in its manufacturing operations. The following data pertain to the agreement: (a) The term of the noncancelable lease is 3 years with no renewal option. Payments of $338317 are due on January 1 of each year. (b) The fair value of the machine on January 1, 2021, is $950000. The machine has a remaining economic life of 10 years, with no salvage value. The machine reverts to the lessor upon the termination of the lease. (c) Blossom depreciates all machinery it owns on a straight-line basis. (d) Blossom's incremental borrowing rate is 9% per year. Blossom does not have knowledge of the 7% implicit rate used by Yates. If Yates records this lease as a direct-financing lease, what amount would be recorded as Lease Receivable at the inception of the lease? $338317 $611683 $1014951 $950000

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Your Question: Hua Fat Technology Ltd Case Hua Fat Technology Ltd (Hua Fat) is a global telecommunication equipment manufacturer. The company was granted a piece of land by the government to develop its 5G business. On 1st January 2018, the company started to construct a property at the site. The property was used as a testing laboratory (the laboratory) to serve the company’s customers. The construction costs relating to the laboratory were:                                                                                                                        $000 Cost of construction materials before trade discount of 10%          50,000   Salary of construction workers for six months to 30 June 2018      4,800 Overheads related to the construction                                             3,600 Payment to external consultants related to the construction           2,000 Expected dismantling and restoration costs (note 3)                        400   Notes: Hua Fat…

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Question #1: Limits Incorporated Limits Incorporated [LI] had the following events occur during 2023: On March 1, 2023, LI signed a contract with a customer AIG Limited to manufacture specialized lawn equipment. The contract was signed for $500,000 and AIG paid $150,000 to LI on the date of the signing. Manufacturing and delivery to AIG is expected to begin in October. On July 2nd, LI sold $200,000 of lawn equipment to PMG for $320,000 cash. The lawn equipment comes with a one-year warranty. Based on history, warranty is expected to average 2% of the selling price of lawn equipment. On November 3rd, LI delivered $75,000 of lawn equipment to AIG. The cost of the equipment manufactured was $38,000. The lawn equipment carries the same warranty as all other lawn equipment. On December 15th some lawn equipment was returned for repair. The parts needed for repair amounted to $1,200, with $200 of labour being utilized to make the repairs. . . Required: Prepare journal entries for ALL the…