16. Helen Company's directorsdecided on November 1, 2011to restructure the entity'soperations as follows: FactoryA would be closed down andput on the market for sale.Employees working in FactoryA would be retrenched onNovember 3O, 2011, and wouldbe paid their accumulatedentitlements plus six months'wages. Some employeesworking in Factory A would betransferred to Factory B,which would continueoperating. On December 31,2011, the followingtransactions and events hadoccurred: The retrenchedemployees have left and theiraccumulated entitlementshave been paid. However, anamount of P1,000,000,representing a portion of thesix months' wages for theretrenched employees, hasstill not been paid. Costs ofP300,000 are expected to beincurred in transferring theremaining employees to theirnew work in Factory B. Thetransfer is planned for January15, 2012. One employee, JuanCruz, remains in order tocomplete administrative tasksrelating to the closure ofFactory A and the transfer ofemployees to Factory B. JuanCruz is expected to stay untilJanuary 31, 2012. His salary forJanuary will be P50,000 andhis retrenchment package willbe P150,000, all of which willbe paid on the day he leaves.Juan Cruz would spend 60%of his time administering theclosure of Factory A, 30% onadministering the transfer ofemployees to Factory B, andthe remaining 10% on generaladministration. What totalamount should be recognizedas restructuring provision onDecember 31, 2011? *a. 1,480,000b. 1,500,000c. 1,180,000d. 1,200,000

Restructuring cost provision is provision related with all the direct expenses which are incurred…

Answered: as restructuring provision on December…

Business

Accounting

as restructuring provision on December 31, 2011? * O a. 1,480,000 O b. 1,500,000 c. 1,180,000 d. 1,200,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

AaBbC AaBbCcI AaBbC AaBbCcl AaBbCc AaBbCcL O Find x A A E=EE E E Replace 1 Normal Title 1 No Spac... Heading 1 Heading 2 Heading 3 Heading 4 Select ont Paragraph Styles Editing QUESTION 3 Penco Ltd. operates a defined benefit pension scheme for all of its employees. The closing balances on the scheme assets and liabilities, at 31 December 2016, were S60 million and $64 million respectively. Penco's actuary has provided the following information that has yet to be accounted for in the year-ended 31 December 2017. $m Current service cost 9. Past service cost 8. Contributions paid in Benefits paid out 6. 66 Fair value of plan asset 75 Fair value of plan liabilities 5% Yield on high quality corporate bonds Required Calculate the amounts that will appear in the financial statements of Penco for the year-ended 31 December 2017. D. Focus 28°C Sunny ^ D G EG 61 37 121
Probability of financial Value of debt distress $0 0% $2,500,000 1% $5,000,000 2% $7,500,000 4% $10,000,000 8% $12,500,000 16% $15,000,000 32% $20,000,000 64%
Provide a paragraph summary of the following figures
Gold Nest Company of Guandong, China, makes birdcages for the South China market. The company sells its birdcages through an extensive network of street vendors who receive commissions on their sales. The company uses a job-order costing system that applies overhead to jobs based on direct labor cost. Its predetermined overhead rate is based on a cost formula that estimated $94,500 of manufacturing overhead for an estimated activity level of $45,000 direct labor dollars. The beginning inventory balances were as follows: Raw materials $ 10,800 Work in process $ 4,900 Finished goods $ 8,800 During the year, the following transactions were completed: Raw materials purchased on account, $162,000. Raw materials used in production, $144,000 (materials costing $123,000 were charged directly to jobs; the remaining materials were indirect). Cash paid to employees: Direct labor $ 155,000 Indirect labor $ 248,800 Sales commissions $ 23,000 Administrative salaries $ 42,000…
Initial investment (CF) Year (t) 1 567GA WN 2 3 4 8 Machine A $85,300 $17,500 $17,500 $17,500 $17,500 $17,500 $17,500 $17,500 $17,500 Machine B $60,300 Cash inflows (CF₂) $11,500 $13,700 $15,600 $18,400 $20,300 $25,400 Machine C $130,300 $50,200 $30,300 $20,500 $20,100 $20,300 $29,900 $39,600 $49,900
provide correct option