A. On the 1st of June 2011 GoodTaste purchased a new freezer for €23,000 of which €2,000 was the VAT tax. In addition GoodTaste had to pay €250 for transport to its facility, €1,500 for installation and €230 in non-refundable environment taxes. Calculate the initial value of the freezer and explain the treatment of any expenses not included in the initial value.
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- (Adjusting Entry for Sales Tax and VAT) Eastwood Ranchers sells a herd of cattle to Rozo Meat Packers for €30,000 and the related VAT. Rozo Meat Packers sells the beef to Wrangler Supermarkets for €40,000 and the related VAT. Wrangler Supermarkets sells this beef to customers for €50,000 plus related VAT.Instructionsa. Assuming the VAT is 15% on all sales, prepare the journal entry to record the sale by Rozo Meat Packers to Wrangler Supermarkets.b. What is the net cash outlay that Eastwood Ranchers incurs related to the VAT?А. Place an "X" in the blank for the following items which you believe should be included in the cost of a piece of equipment? 1. Purchase price 2. Sales tax 3. Electricity to run the equipment 4. Installation cost 5. Insurance while being transported 6. Insurance while in use 7. Freight charges В. Your company signed a contract to construct a new building so you borrowed $600,000 on February 1, 2021 and issued a three-year, 6% note which pays interest annually. You spent $200,000 for construction on April 1, 2021 and an additional $300,000 on November 1. How much interest should be capitalized in 2021? Please show your calculations. С. Your company spent $30,000 for repairs and modifications to significantly increase the life of your equipment. What entry should be made for the $30,000? D. You bought equipment on January 1, 2018, for $62,000. The equipment has an estimated life of 8 years and an estimated salvage value of $6,000. Your company uses the straight- line method of…On July 3, 2020, Franky purchased on account specialty feeds worth P800,000 net of VAT. A wholesaler operating in the region bought for cash all of the available feeds on July 18, 2020; amount of cash received was P1,120,000 gross of VAT. Franky remitted the value added tax due to the BIR within the month. What is the VAT payable paid by Franky for the month of July? O A. 34,285.71 В. О О с 38,400 О D. 24,000
- Integrity Company sold consumer products that are packaged in boxes. The entity offered an unbreakable glass in exchange for two box tops as a promotion during the current year. The cost of the glass was P200. The company sold 200,000 boxes of the product and 40,000 box tops were redeemed during the year. The entity estimated at the end of the year that it would be probable that 50% of the box will be redeemed. The allocated transaction price for the premium is P5,000,000.How much is the Unearned Revenue for Unredeemed Premiums?Çorner Company puchased a van with a list price of P3,000,000. The dealer granted a 15% reduction in list price and an additional 10% cash discount on the net price if payment is made in 30 days. Irrecoverable taxes amounted to P40,000 and the entity paid an extra P30,000 to have a spęcial horn installed. What amount should be recorded as initial cost of the van? а. 2,550,000 b. 2,335,500, C., 2,365,000 d. 2,325,000 CS Scanned with CamScannerObra Ltd is your client. It has adopted IFRS as the financial reporting framework and has asked you to assist in dealing with the following issues. On I January 2014 Obra Ltd acquired a machine under the following terms. Manufacturer's base price GHS1,050,000 Trade discount (applying to base price only) 20% Early settlement discount taken (on the payable amount of the base cost only) 5% Freight charges GHS 30,000 Electrical installation cost GHS 28,000 Staff training in use of machine GHS 40,000 Pre-production testing GHS 22,000 Purchase of a three-year maintenance contract GHS60,000 Estimated residual value GHS 20,000 Estimated life in machine hours 6,000 hours Hours used -year ended 31 December 2014 - 1,200 hours - year ended 31 December 2015 1,800 hours - year ended 31 December 2016 (see below) 850 hours On I January 2016 Obra Ltd decided to upgrade the machine by adding new…
- ABC Corp. sold goods to the Bureau of Internal Revenue in the amount of Php 100,000.00 after winning the bid. ABC Corp. purchased the goods it sold from from XYZ Corp., a VAT-registered taxpayer at a cost of Php 50,000 .00. How much is the VAT due and still payable (overpayment)? NOTE: use parenthesis if overpayment Example, if your answer is an overpayment of Php 123,456.78, write (123457)A customer has returned unwanted goods and the company has agreed to refund thecustomer in full. These goods were sold to the customer for €10,000. There isnothing wrong with the goods and they will be offered for sale to future customers.The goods originally cost €7,000.What is the impact on the net assets of the company in monetary terms?On June 30, 2016, Kimberly Farms purchased custom-made harvesting equipment from a local producer. In payment, Kimberly signed a noninterest-bearing note requiring the payment of $60,000 in two years. The fair value of the equipment is not known, but an 8% interest rate properly reflects the time value of money for this type of loan agreement. At what amount will Kimberly initially value the equipment? How much interest expense will Kimberly recognize in its income statement for this note for the year ended December 31, 2016?
- On May 3, 2020, Sage Company consigned 80 freezers, costing $ 500 each, to Remmers Company. The cost of shipping the freezers amounted to $ 920 and was paid by Sage Compay. On December 30, 2020, a report was received from the consignee, indicating that 40 freezers had been sold for $ 810 each. Remittance was made by the consignee for the amount due after deducting a commission of 5%, advertising of $ 220, and total installation costs of $ 300 on the freezers sold. (Round answers to0 decimal places, eg. 5,275.) (a) Compute the inventory value of the units unsold in the hands of the consignee. Inventory value %24 (b) Compute the profit for the consignor for the units sold. Profit on consignment sales %24 (c) Compute the amount of cash that will be remitted by the consignee. Remittance from consignee %24 eTextbook and MediaOn August 1, 2022, Mendez Corporation purchased a new machine on a deferred payment basis. A down payment of €2,000 was made and 4 annual installments of €6,000 each are to be made beginning on September 1, 2022. The cash equivalent price of the machine was €23,000. Due to an employee strike, Mendez could not install the machine immediately, and thus incurred €300 of storage costs. Costs of installation (excluding the storage costs) amounted to €800. The amount to be capitalized as the cost of the machine is :- €23,000. €23,800 €26,000. €24,100On December 31, 2012, BTS Company sold a machine to GOT Co and simultaneously leased it back for one year. The sales price of the machine was P480, 000, the carrying amount is P420,000, and it had an estimated remaining useful life of 14 years. The present value of the rental payments for one year is P35, 000. At December 31, 2019, how much should BTS Company report as deferred revenue from the sale of the machine?