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Maroon Company provided the following data on the date of revaluation: 5,000,000 6,000,000 Building, at original cost iaver to tab on co en Building, at fair value Accumulated depreciation - cost 40-year life and 10 years expired 1,250,000

Maroon Company provided the following data on the date of revaluation: 5,000,000 6,000,000 Building, at original cost iaver to tab on co en Building, at fair value Accumulated depreciation - cost 40-year life and 10 years expired 1,250,000

FINANCIAL ACCOUNTING
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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Question for Maroon Company: • HOW MUCH IS THE GAIN OR LOSS IF THE BLDG IS SOLD FOR P8MILLION ONE YEAR AFTER REVALUATION? • HOW MUCH IS THE BLANCE OF REVALUATION SURPLUS AFTER THE SALE? For Noypi Store, follow the requirement. (Choose from the choices and kindly provide a solution.)
9. Noypi Store, a retailer, started operations on January 1. On that date, the ony assets were P16,000 in cash and P3.500 in merchandise inventory. For purpose or budget preparation, assume the company's cost of good sold is 60% of sales. Expected sales for the first four months as follows: January – P10,000; February P24,000; March -P16,000; April merchandise inventory on hand at the end of each month be equal to 50% of the next-month's merchandise sales (stated at cost). All purchases of merchandise inventory must be paid in the month of purchase. Sixty percent of all sales be of cash; the balance will be on credit. Seventy-five percent of the credit sales should be collected in the month following the sale, with the balance collected in the following month. Variable operating expense should be 10% of sales and fixed expense (depreciation) should be P3,000 per month. Cash payments for variable operating expense are made during the month the expenses are incurred. In a budget of cash disbursement for March, the total cash disbursement would be: a. P16,900 P25,000. The company desires that the b. P22,300 c. P13,900 d. P11,200
Transcribed Image Text:9. Noypi Store, a retailer, started operations on January 1. On that date, the ony assets were P16,000 in cash and P3.500 in merchandise inventory. For purpose or budget preparation, assume the company's cost of good sold is 60% of sales. Expected sales for the first four months as follows: January – P10,000; February P24,000; March -P16,000; April merchandise inventory on hand at the end of each month be equal to 50% of the next-month's merchandise sales (stated at cost). All purchases of merchandise inventory must be paid in the month of purchase. Sixty percent of all sales be of cash; the balance will be on credit. Seventy-five percent of the credit sales should be collected in the month following the sale, with the balance collected in the following month. Variable operating expense should be 10% of sales and fixed expense (depreciation) should be P3,000 per month. Cash payments for variable operating expense are made during the month the expenses are incurred. In a budget of cash disbursement for March, the total cash disbursement would be: a. P16,900 P25,000. The company desires that the b. P22,300 c. P13,900 d. P11,200
Maroon Company provided the following data on the date of revaluation: Building, at original cost Building, at fair value Accumulated depreciation- cost 40-year life and 10 years expired 5,000,000 6,000,000 Javer to Stab oni co vsm 1,250,000
Transcribed Image Text:Maroon Company provided the following data on the date of revaluation: Building, at original cost Building, at fair value Accumulated depreciation- cost 40-year life and 10 years expired 5,000,000 6,000,000 Javer to Stab oni co vsm 1,250,000
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