Kling Company was organized in December Year 1 and began operations on January 2, Year 2. Prior to the start of operations, it incurred the following costs:Costs of hiring new employeesAttorney's fees in connection with the organization of the companyImprovements to leased offices prior to occupancy (10-year lease)Costs of pre-opening advertisingRequired:1. What amount should the company expense in Year 1?600$3,00012,0006,0005,000Chapter 12 Homework assignment take frameStart-Up CostsWhat amount should the company expense in Year 2?+A$

Step 1:Expense for Year 1: ParticularsAmount ($)Cost of hiring new employees3,000Attorney's…

Answered: Kling Company was organized in December…

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter16: Accounting Periods And Methods

Section: Chapter Questions

Problem 42P

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If the company records revenue at a point in time, how much must be shown as current asset in the balance sheet of MOC Construction Company as of December 31? A. 5,100,000 C. 250,000B. 500,000 D. 100,000
i need help with this review Katsura Corporation incurred pre-operating costs: Investigatory expenses of $17,000 New employee training $25,000 Advertising $10,000 Land and building for use as a retail store when opened $150,000 Round your answer to 2 decimal places. Katsura wishes to maximize its deduction for start-up costs. Assuming they open for business on February 27th of the current year, what is the deduction for start-up costs?
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The following calendar year-end information is taken from the December 31, 2019, adjusted trial balance and other records of Leone Company. Advertising expense $ 34,300 Direct labor $ 673,300 Depreciation expense—Office equipment 11,500 Income taxes expense 270,100 Depreciation expense—Selling equipment 10,300 Indirect labor 58,800 Depreciation expense—Factory equipment 34,800 Miscellaneous production costs 11,200 Factory supervision 109,600 Office salaries expense 61,000 Factory supplies used 8,900 Raw materials purchases 957,000 Factory utilities 36,000 Rent expense—Office space 24,000 Inventories Rent expense—Selling space 27,400 Raw materials, December 31, 2018 152,900 Rent expense—Factory building 82,600 Raw materials, December 31, 2019 182,000 Maintenance expense—Factory equipment 36,600 Work in process, December 31, 2018 19,400 Sales 4,525,600 Work…
The following calendar year-end information is taken from the December 31, 2019, adjusted trial balance and other records of Leone Company. Advertising expense $ 27,500 Direct labor $ 671,800 Depreciation expense—Office equipment 11,800 Income taxes expense 285,700 Depreciation expense—Selling equipment 10,900 Indirect labor 59,300 Depreciation expense—Factory equipment 33,500 Miscellaneous production costs 11,300 Factory supervision 140,300 Office salaries expense 66,000 Factory supplies used 8,300 Raw materials purchases 965,000 Factory utilities 34,000 Rent expense—Office space 28,000 Inventories Rent expense—Selling space 26,400 Raw materials, December 31, 2018 153,900 Rent expense—Factory building 82,600 Raw materials, December 31, 2019 180,000 Maintenance expense—Factory equipment 39,900 Work in process, December 31, 2018 19,300 Sales 4,626,600 Work…
Claire Corporation’s trial balance includes the following expenses: Raw materials used in production$5,500Raw materials purchased6,500General manager salary50,000Sales manager salary30,000Direct labor incurred130,000General liability insurance premium3,000Factory rent24,000Office lease18,000Factory utilities12,000Depreciation on factory equipment14,000 Assuming that this list represents all expenses for the year, what amount should Claire report as a period (non-product) expense? Select one: a. $74,000 b. $107,500 c. $83,000 d. $101,000
Rustic Construction Company uses the percentage of completion method of recognizing revenue on construction contracts. It uses full accrual accounting and prepares monthly financial statements. Rustic’s records showed the following data relating to the construction of an office building: Total contract awarded $99,600Total estimated costs on the project $99,600 - $18,000Payments from the buyer on April 25th = 30% of contractPayments from the buyer on June 17th = 30% of contractPayments from the buyer on July 30th = 40% of contractCosts incurred on the project and billed for the month of April = 40% of totalCosts incurred on the project and billed for the month of May = 30% of totalCosts incurred on the project and billed for the month of June = 30% of totalProject was completed at the end of month 3. Required 1: Assuming no other transaction happened, what is the balance of Accounts Receivables at April 30th? $ Required 2: Assuming no other transaction happened, what is the…
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A company entered into a contract on 1 January 20X5 to build a factory. The total contract revenue was $2.8 million. At 31 December 20X5 the contract was certified as 35% complete. Costs incurred during the year were $740,000 and costs to complete are estimated at $1.4 million. $700,000 has been billed to the customer but not yet paid. What amount will be recognised as a contract asset or liability in respect of this contract in the statement of financial position as at 31 December 20X5? A $271,000 contract asset B $509,000 contract asset C $271,000 contract liability D $509,000 contract liability
Rasher Construction Limited (RCL) entered into a contract to construct a building for $975,000. The contract provided for progress payments. RCL's accounting year ends December 31. Work began under the contract on August 1, 2017, and was completed on October 31, 2019. Construction activities are summarized below: 2017 2018 450,000 190,000 535,500 375,000 2019 Construction costs incurred during the year 180,000 Estimated remaining costs to complete Progress Billings to date Cash Collections to date 195,000 630,000 153,000 140,000 975,000 450,000 REQUIRED 1. Record RCL's journal entries assuming that the percentage-of-completion method is used. Assume that the percentage of completion is measured by the ratio of costs incurred to date divided by total estimated construction costs. 2. Complete the following table for RCL using the percentage-of-completion method (as of and for the year ended December 31): 2017 2018 2019 Accounts Receivable CIP Inventory Billings on Contract Cost in excess…
Compute the amount of under or overaplied overhead cost
9

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