On January 2020 Nemea SA is founded with shareholders capital €100,000 paid in cash. Next month Nemea purchases: i) land for €30,000 and ii) inventories for €50,000 all paid in cash. On June 2020 half of inventories sold for €30,000, receivable on June 2021. On November 2020 Nemea pays €6,000 (in cash) for various operating expenses. What is the result of Nemea for 2020? Select one: Ⓒanone of the suggested answers is correct O b. 24,000 profit Oc1.000 profit d. 1,000 loss O e.0

On January 2020 Nemea SA is founded with shareholders capital €100,000 paid in cash. Next month Nemea purchases: i) land for €30,000 and ii) inventories for €50,000 all paid in cash. On June 2020 half of inventories sold for €30,000, receivable on June 2021. On November 2020 Nemea pays €6,000 (in cash) for various operating expenses. What is the result of Nemea for 2020? Select one: Ⓒanone of the suggested answers is correct O b. 24,000 profit Oc1.000 profit d. 1,000 loss O e.0

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

WHITE started constructing a building to be used for producing its goods in January 2021, WHITE incurred interest of $100,000 from its borrowings to finance the construction. In 2021, the Company also earned interest income of $20,000 and dividend income of $30,000 from its temporary placement of the proceeds According to IAS23, how much borrowing cost should be capitalized by in 2021?
United Bhd makes up its accounts to 31 March annually. The company acquired a machinery on 1.7.2017 for RM50,000. The company disposed the machinery on 31.3.2023 for RM53,000. Calculate the capital allowances and balancing charge/allowance for the relevant YAs up to the YA2023.
Suppose a company spends $100,000 on research and development in 2021. As a result of the products developed, additional revenue is generated over the next five years totaling $600,000. When is the cost of the research and development in 2021 recognized as an expense? Multiple Choice Evenly over the period 2022-2026. Full amount in 2026. Evenly over the period 2021-2025. Full amount in 2021.
On January 01, 2020 Kit Company, Inc. establishes a branch in Bauang. During the year, Kit Inc. transfers cash and merchandise to the branch worth P15,000 and P45,000 respectively. Freight was paid by the home office worth P1,500 included in the cost of merchandise. The home office also incurred P5,700 expenses of which 30 percent was allocated to the branch. On December 31, 2020, the branch incurred a loss of P4,000. What is the balance of the branch account as per home office books. Present solution in good accounting form.
"Palawan financing has a total assets of P500,000 and total liabilities of P300,000 at the end of the December 31, 2020. What is the amount to be received by the shareholders if the company liquidates its total assets at P450,000 and payoff all of its liabilities?"
Company A is parent company with subsidiary Company B. The following intercompany sales were recorded for the year ended 31 December 2020. - Intercompany sales at invoice prices amounted to RM100,000 of which RM40,000 remained in the closing inventories of the buying company. The profit element on intercompany sales to the selling company was at 20% of the invoice prices. Required:Show the journal entries to eliminate the above intercompany transactions.
Johnstone Company is facing several decisions regarding investing and financing activities. Address each decision independently. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)1. On June 30, 2021, the Johnstone Company purchased equipment from Genovese Corp. Johnstone agreed to pay Genovese $26,000 on the purchase date and the balance in five annual installments of $9,000 on each June 30 beginning June 30, 2022. Assuming that an interest rate of 11% properly reflects the time value of money in this situation, at what amount should Johnstone value the equipment?
On January 01, 2020 Kit Company, Inc. establishes a branch in Bauang. During the year, Kit Inc. transfers cash and merchandise to the branch worth P15,000 and P45,000 respectively. Freight was paid by the home office worth P1,500 included in the cost of merchandise. The home office also incurred P5,700 expenses of which 30 percent was allocated to the branch. On December 31, 2020, the branch incurred a loss of P4,000. What is the balance of the branch account as per home office books
Isaac Inc. began operations in January 2021. For some property sales, Isaac recognizes income in the period of sale for financial reporting purposes. However, for income tax purposes, Isaac recognizes income when it collects cash from the buyer's installment payments. In 2021, Isaac had $676 million in sales of this type. Scheduled collections for these sales are as follows: 2021 $ 83 million 2022 137 million 2023 129 million 2024 162 million 2025 165 million $ 676 million Assume that Isaac has a 25% income tax rate and that there were no other differences in income for financial statement and tax purposes. Ignoring operating expenses, what deferred tax liability would Isaac report in its year-end 2021 balance sheet?
The management accountant at Miller Merchandising & More, Odail Russell is in the process of preparing the cash budget for the business for the fourth quarter of 2021. It is customary for the business to borrow money during this quarter. Extracts from the sales and purchases budgets are as follows: Cash Sales Sales On Account $640,000 $550,000 $600,000 $800,000 $500,000 Month Purchases August September $85,000 $70,000 $88,550 $77,160 $174,870 $420,000 $550,000 $500,000 $600,000 $450,000 October November December i) An analysis of the records shows that trade receivables are settled according to the following credit pattern, in accordance with the credit terms 4/30, n90: 50% in the month of sale 30% in the first month following the sale 20% in the second month following the sale ii) Expected purchases include monthly cash purchases of 5%. All other purchases are on account. Accounts payable are settled as follows, in accordance with the credit terms - 2/30, n60: 60% in the month in…