Class 6 Exercise Questions with Solutions

Problem 2-25 (IFRS) William Company operates a customer loyalty program. The entity grants loyalty points for goods purchased. The loyalty points can be used by the customers in exchange for goods of the entity. The points have no expiry date. During 2022, the entity issued 100,000 award credits and expects that 80% of these award credits shall be redeemed. The total stand-alone selling price of the award credits granted is reliably measured at P2,000,000. In 2022, the entity sold goods to customers for a total consideration of P8,000,000 based on stand-alone selling price. The award credits redeemed and the total award credits expected to be redeemed each year are as follows: 2022 2023 a. b. Redeemed 30,000 15,000 1. What amount should be reported as revenue from points for 2022? C. d. 1,600,000 1,500,000 600,000 480,000 Expected to be redeemed 80% 90% 2. What amount should be reported as revenue from points for 2023? a. 240,000 b. 200,000 120,000 0 C. d. 65

Problem 2-20 (IFRS) William Company operates a customer loyalty program.The entity grants loyalty points for goods purchased. The loyalty points can be used by the customers in exchange for goods of the entity. The points have no expiry date. During 2020,the entity issued 100,000 award credits and expects that 80% of these award credits shall be redeemed. The total stand-alone selling price of the award credits granted is reliably measured at P2,000,000. In 2020, the entity sold goods to customers for a total consideration of P8,000,000 based on stand-alone selling price. The award credits redeemed and the total award credits expected to be redeemed each year are as follows: Redeemed Expected to be redeemed 2020 30,000 80% 2021 15,000 1. What is the revenue from points for 2020? a. 1,600,000 b 1,500,000 C. 600,000 d 480,000 2. What is the revenue from points for 2021? a.240,000 B.200,000 C. 120,000 d 0

Problem 2-5 (IFRS) Erika  Company operates a customer loyalty program. The entity grants loyalty points for goods purchased. The loyalty points can be used by the customers in exchange for the goods of the entity. The points have no expiry date. During 2020, the entity issued 50,000 award credits and expects that 80% of these award credits shall be redeemed. The stand-alone selling price of the award credits granted is reliably measured at P1,000,000. In 2020, the entity sold goods to customers for a total consideration of P7,000,000 based on stand-alone selling price. The award credits redeemed and the total award credits expected to be redeemed each year are as follows:                                                                   Redeemed      Expected to be redeemed                                        2020                   15,000                            80%                                        2021                     7,950                            85%…

Exercise 1-16A (Algo) Applications of the Sarbanes-Oxley Act LO 1-6 The CFO of the Munoz Microscope Corporation intentionally misclassified a downstream transportation expense in the amount of $649,900 as a product cost in an accounting period when the company made 9,700 microscopes and sold 6,600 microscopes. Munoz rewards its officers with bonuses that are based on net earnings. Required a. Indicate whether the elements on the financial statements (i.e., assets, liabilities, equity, revenue, expense, and net income) would be overstated or understated as a result of the misclassification of the downstream transportation expense. Determine the amount of the overstatement or understatement for each element. Note: If there is no effect, select "Not affected" from the dropdown provided. Enter all answers as positive values. Assets Liabilities Retained earnings Revenue Expense Net income

Dinesh Bhai

Problem 6-22 (Algo) (LO 6-2) On December 31, 2023, Petra Company invests $45,000 in Valery, a variable interest entity. In contractual agreements completed on that date, Petra established itself as the primary beneficiary of Valery. Previously, Petra had no equity interest in Valery. Immediately after Petra's investment, Valery presents the following balance sheet: Cash Marketing software Computer equipment Total assets $ 45,000 165,000 65,000 $ 275,000 Long-term debt Noncontrolling interest Petra equity interest Total liabilities and equity $ 95,000 135,000 45,000 $ 275,000 Each of the amounts represents an assessed fair value at December 31, 2023, except for the marketing software. The December 31 business fair value of Valery is assessed at $180,000. Required: a. If the carrying amount of the marketing software was undervalued by $50,000, what amounts for Valery would appear in Petra's December 31, 2023, consolidated financial statements? b. If the carrying amount of the marketing…

NOVEMBER 2023 /FIN2203/FIN2063/FIN301 ASSIGNMENT You are required to: i. Select THREE(3) companies in different industries, listed under Bursa Malaysia, and make sure each company that you choose used different policies. Download any financial statement that is relevant for you for this assignment. ii. For each of the company, please identify the following: Permanent Asset Temporary Current Asset Permanent Sources of financing Temporary Sources of financing Spontaneuos Sources of financing iii. From the statements, justify your answer on working capital financing policies adopted by each company. Explain. iv. Assess for each of the companies's: a) Operating cycle. b) Cash conversion cycle. c) Annual savings if the operating cycle is reduced by 10 days.

QUESTION 5 Entity A is preparing its financial statements for the year ended 30 September 2023. The company is now facing a number of legal claims from its customers about some faulty products sold. The total amount being claimed is $2,250,000. The company's lawyers say that the customers have an 80% chance of being successful. REQUIRED: According to HKAS 37 Provisions, Contingent Liabilities and Contingent Assets, what journal entries should be made in respect of the above case in Entity A's statement of financial position on 30 September 2023? ACCOUNTS FOR INPUT: | Legal claim expense | Legal claim income | Provision for legal claim expense | | Bank | Contingent liability | Contingent asset | Provision for legal claim income | ANSWER: Journal Entries: Date Account Name Debit ($) Credit ($) Hints For Sequence 4 pa

10.2.3 ACCOUNTING 1: ASSIGNMENT 2 QUESTION ONE Samke Limited sells new equipment and repairs equipment for their regular customers. The following information was extracted from the accounting records for the financial year ended 30 June 2021 1. Extracted from the Pre-Adjustment Trial Balance at 30 June 2021: R Fixed deposit Inventory: Trade goods Debtors control Machinery Accumulated depreciation: Machinery Long term borrowing: Finhouse Sales Debtors allowances Cost of sales Service fee income (in respect of repair services) Rent income Interest income Salaries and wages Audit fees Directors fees Consumable stores Bank charges Travel and entertainment - Directors 2. 2.1 2.2 2.4 auditors are owed a further R28 000 in audit fees. Bank charges of R310 reflected on the June 2021 bank statement have not yet been entered in the books. 2.3 The stock count on 30 June 2021 revealed the following on hand: • Inventory: Trade goods; R202 000 • Consumable stores; R900 2.5 Adjustments and additional…

Question 9 options: Mooney Corporation has acquired 150 machines in a business combination.  Mooney does not intend to use these machines so it is required to recognize these items at fair value.   Assume that Mooney has access to 3 different geographical markets (Northwest, Southwest, and Midwest). The Northwest market has legal restrictions and will take at least 6 months to obtain approval to sell the machines in  the Northwest. The markets in the Southwest and Midwest can be accessed immediately. Volumes and prices are listed below Market Price Entity Specific Volume Market Volume Northwest $42,000 20% 45% Southwest $52,000 45% 15% Midwest $49,000 35% 40%   Which market should Mooney Corporation use to determine the fair value of the machines?

Question 3 - Proctoring Enable X + C getproctorio.com/secured #lockdown Proctoring Enabled: Chapter 4 Required Homework (G... i Mc Graw Hill 3 On December 31, the end of the current fiscal year, a US company completed the sale of one business segment for $9.6 million. We know that the business segment qualifies as a component of the company, according to GAAP. Pleasealso consider the following additional information: . The book value of the assets of the segment was $7.3 million at the time of the sale. The income from operations of the segment during the current year was $4.3 million. Pretax income from other continuing operations for the year totaled $12.3 million. . The income tax rate is 25%. A Company Partial Income Statement For the Year Ended December 31, Current Year Saved Pleaseprepare the lower portion of the current year income statement beginning with income from continuing operations before income taxes. Note: Loss amounts should be indicated with a minus sign. Enter your…

sharad

Workshop Question 1: Chapter 12 SOPL and SoFP - Ambi plc QUESTION 1: Ambi plc The following trial balance was extracted from the nominal ledger of Ambi plc on 31 December 2023: Sales Inventories at 1 January 2023 Purchases Distribution costs Administrative expenses Irrecoverable debts £ £ 2,110,000 56,000 850,000 310,000 216,000 18,500 Loan interest paid 4,000 Land and buildings cost 1,250,000 Plant and equipment cost 287,500 Land and buildings accumulated depreciation at 1 January 2023 185,000 Plant and equipment accumulated depreciation at 1 January 2023 102,750 72,000 12,750 375,000 75,000 80,000 82,000 15,000 48,000 8,500 3,079,000 3,079,000 Bank Trade receivables Equity share capital (£1 shares) Share premium Bank loan Retained earnings Equity dividends paid Accounts payable Advance deposits from customers The following adjustments have yet to be accounted for: 1. The company's depreciation policy is as follows: a. Buildings Straight-line over 30 years b. Plant and equipment 10%…

Question 14 of 20 Select the best answer for the question 14. The operating expenses of a company include all of the following except OA. commissions earned by a salesperson OB. wages paid to an employee OC. rent paid to a landlord. OD. cash withdrawn by the owner or owners O Mark for review (Will be highlighted on the review page) --- 17 A << Previous Question Type here to search W S # 3 X E F3 4 R F % O St G B N EE M

.ull Airtel TZ 3G 10:08 @ 12% I 4. The trial balance below was extracted from the books of CiciCaca Enterprise as at 31 Mac 2020: Particulars Debit Credit RM RM 377,000 432,000 102,000 625,000 950,000 Purchases and Sales Plant and machinery Vehicles Land and building Accumulated depreciation: Plant and machinery Vehicles Discount allowed and discount received Returns inwards and returns outwards Carriage inwards Carriage outwards Custom duties Drawings Provision for doubttul debts Salaries and wages Electricity and water Rent and rates Insurance Mortgage on land and building Repairs and maintenance Commission earned Accounts receivables Account payable Inventory-1 April 2019 Cash at bank Capital 175,000 39,000 760 12.200 1,500 44,000 4,700 5,500 15,400 3,600 2,000 300,000 65,000 4,000 55,000 450,000 6,300 95,000 187,000 166,500 51,000 41,100 429,640 2,320,100 2,320,100 TOTAL The following additional information is to be taken into consideration: i. Increase in provision for doubtful…

Subject-Accounting

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WileyPLUS A https://edugen.wileyplus.com/edugen/Iti/main.uni Return to Blackboard Jeter, Advanced Accounting, 6e Help | System Announcements CALCULATOR PR Exercise 13-4 On January 1, 2014, Trenten Systems, a U.S.-based company, purchased a controlling interest in Grant Management Consultants located in Zurich, Switzerland. The acquisition was treated as a 2014 financial statements stated in Swiss francs are given below. GRANT MANAGEMENT CONSULTANTS Comparative Balance Sheets January 1 and December 31, 2014 Jan. 1 Dec. 31 Cash and Receivables 19,600 54,400 Net Property, Plant, and Equipment 40,200 37,600 Totals 59,800 92,000 Accounts and Notes Payable 29,500 32,200 Common Stock 19,600 19,600 Retained Earnings 10,700 40,200 Totals 59,800 92,000 GRANT MANAGEMENT CONSULTANTS Consolidated Income and Retained Earnings Statement for the Year Ended December 31, 2014 Revenues 74,900 Operating Expenses including Depreciation of 2,600 francs Net Income Dividends Declared and Paid 30,600 44,300…

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Problem 10. The balance in Kalanchoe Co.'s accounts payable account at December 31, 2021 was P1,350,000 before any necessary adjustments relating to the following: • Goods were in transit to Kalanchoe from a vendor on December 31, 2021. The invoice cost was P75,000. The goods were shipped FOB shipping point on December 29, 2021 and were received on January 2, 2022. • Goods shipped FOB destination on December 31, 2021 from a vendor to Kalanchoe were received on January 6, 2022. The invoice cost was P37,500. • On December 27, 2021, Kalanchoe wrote and recorded checks totaling P60,000 which were mailed on January 10, 2022. In Kalanchoe's December 31, 2021 statement of financial position, how much should be the accounts payable?

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