From the following particulars prepare a claim for loss of profits under the Consequential Loss Policy.Date of Fire:June 30, 2013Period of indemnity: Six MonthsParticularsSum InsuredTurnover for the year ended June 30, 2013Net Profit for the accounting year ending March 31, 2013Standing charges for the accounting year ending March 31, 2013Turn Over for the year ending March 31, 2013Turn Over for the indemnity period from 1.7.13 - 31.12.13Turn Over for the period from 1.7.12-31.12.12Amount$25,0001,00,0006,25014,25099,00028,00055,000The turnover of the year 12-13 had shown a tendency of increase of 10% over the turnover of thepreceding year.

The consequential loss policy is the policy for protection against any loss in business due to…

Answered: From the following particulars prepare…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Depreciation on equipment for the year is $3,600. a. Record the journal entry if the company prepares adjustments once a year. If an amount box does not require an entry, leave it blank. fill in the blank b11d55fe2033026_2 fill in the blank b11d55fe2033026_3 fill in the blank b11d55fe2033026_5 fill in the blank b11d55fe2033026_6 b. Record the journal entry if the company prepares adjustments on a monthly basis. If an amount box does not require an entry, leave it blank. fill in the blank 391599fc405903f_2 fill in the blank 391599fc405903f_3
Hybrid Dealers bought computer equipment for R54 000 on 1 July 2018. The equipment is depreciated at 20% according to the diminishing balance method. Prepare the depreciation and closing transfer entries in the general journal of Hybrid Dealers on 31 March 2019 and 31 March 2020.
An asset's book value is $36,000 on January 1, Year 6. The asset is being depreciated $500 per month using the straight-line method. Assuming the asset is sold on July 1, Year 7 for $25,000, the company should record: Multiple Choice O O O Neither a gain or loss is recognized on this type of transaction. A gain on sale of $2,000. A loss on sale of $1,000. A gain on sale of $1,000. A loss on sale of $2,000.
Current Attempt in Progress Blossom Co. at the end of 2020, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows: Pretax financial income Estimated litigation expense Installment sales Taxable income $140000 noncurrent. $1500000 3500000 O $140000 current. O $700000 noncurrent. O $0. (2800000) The estimated litigation expense of $3500000 will be deductible in 2022 when it is expected to be paid. The gross profit from the installment sales will be realized in the amount of $1400000 in each of the next two years. The estimated liability for litigation is classified as noncurrent and the installment accounts receivable are classified as $1400000 current and $1400000 noncurrent. The income tax rate is 20% for all years. The deferred tax asset to be recognized is $2200000
Swifty Industries presents you with the following information.Complete the table for the year ended December 31, 2022. The company depreciates all assets using the half-year convention. (Round answers to 0 decimal places, e.g. 45,892.) Description DatePurchased Cost SalvageValue Lifein Years DepreciationMethod AccumulatedDepreciation to12/31/21 Depreciationfor 2022 Machine A 2/12/20 $146,800 $17,000 10 SYD $34,220 $20060 Machine B 8/15/19 81370 21,630 5 SL 29,870 11948 Machine C 7/21/18 67,200 23,500 8 DDB (A) (B) Machine D (C) 225,570 71,070 5 SYD 72,100 (D)
Novak Company sells equipment on September 30, 2020, for $19,100 cash. The equipment originally cost $74,800 and as of January 1, 2020, had accumulated depreciation of $42,100. Depreciation for the first 9 months of 2020 is $5,050.Prepare the journal entries to (a) update depreciation to September 30, 2020, and (b) record the sale of the equipment. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) No. Account Titles and Explanation Debit Credit (a) (b)
Requlred Information [The following information applies to the questions displayed below.] A company makes the payment of a one-year Insurance premium of $4,248 on March 1, 2019. e. Prepald expenses reflects as an asset for more meaningful net Income amount. True or False True False
Current Attempt in Progress Prepare the journal entries to record the following transactions for Blue Spruce Inc., which has a calendar year end and uses straight- line depreciation. (a) On June 30, 2022, the company sold office equipment for $21,500. The office equipment originally cost $34,000 and had accumulated depreciation to the date of disposal of $15,500. (If no entry is required, select "No entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. List all debit entries before credit entries.) Date June 30, 2022 Sept 30, 2022 Save for Later Account Titles and Explanation Debit Attempts-0 of 1 used Credi
Marigold Advertising was founded in January 2013. Presented below are adjusted and unadjusted trial balances as of December 31, 2020. Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accumulated Depreciation-Equipment Accounts Payable Interest Payable Notes Payable Unearned Service Revenue Salaries and Wages Payable Common Stock MARIGOLD ADVERTISING TRIAL BALANCE DECEMBER 31, 2020 Unadjusted Retained Earnings Service Revenue Salaries and Wages Expense Insurance Expense Interest Expense Depreciation Expense Supplies Expense Rent Expense Dr. $18,810 22,900 8,710 3,730 63,430 11,720 370 4,500 $134,170 Cr. $30,670 14,467 -0- 4,700 6,590 -0- 10,580 3,750 63,413 $134,170 Dr. Adjusted $18,810 26,011 2,795 2,949 63,430 12,961 781 511 4,700 5,915 4,500 $143,363 Cr. $35,370 14,467 141 4,700 5,142 1,241 10,580 3,750 67,972 $143,363
14. The records for ABC Co. show this data for 2020: • Gross profit on installment sales recorded on the books was P300,000. Gross profit from collections of installment receivables was P220,000. • Life insurance on officers was P3,800. (ABC Company is the beneficiary.) • Machinery was acquired in January for P300,000. Straight-line depreciation over a ten-year life (no salvage value) is used. For tax purposes, accelerated depreciation is used and ABC may deduct 14% for 2020. • Interest received on tax exempt Iowa State bonds was P9,000. • The estimated warranty liability related to 2020 sales was P19,600. Repair costs under warranties during 2020 were P13,600. The remainder will be incurred in 2021. For tax purposes. Expenses related to warranty is to be deducted when repair costs are actually rendered. • Pretax financial income is P450,000. The tax rate is 30%. The total income tax expense for the year 2020 would be?
The following accounts are extracted from the worksheet of X Company on December 31, 2020: Income frem eentinuing operations after taxes: $2,000,000 • During the year, the company suffered from abnonmal and infrequent hurricane damages that had resulted in a $60,000 pretax loss During the yeaI also, the company stopped the activities of its REW segment which had resulted in a pretax operating loss of S100,000 and a net of tax loss on di sposal $20,000 Tax Rate was 30%
Depreciation on the company's equipment for the year is computed to be $14,000. The Prepaid Insurance account had a $6,000 debit balance at December 31 before adjusting for the costs of any expired coverage. An analysis of the company’s insurance policies showed that $540 of unexpired insurance coverage remains. The Supplies account had a $430 debit balance at the beginning of the year, and $2,680 of supplies were purchased during the year. The December 31 physical count showed $507 of supplies available. One-fourth of the work related to $11,000 of cash received in advance was performed this period. The Prepaid Rent account had a $5,300 debit balance at December 31 before adjusting for the costs of expired prepaid rent. An analysis of the rental agreement showed that $4,760 of prepaid rent had expired. Wage expenses of $6,000 have been incurred but are not paid as of December 31. Prepare adjusting journal entries for the year ended December 31 for each separate situation.

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