pegan operations several years ago. The company p of the space was needed for operations, the remaini or rental revenue of PhP1,000,000 per year. The su ed in the company needing more space. The renter's D will not renew the lease in order to use the space luct requires materials that cost PhP1,250 per unit. in Dh D100 000
Q: Cafe X purchased a new espresso maker for $3,000 at the beginning of the month. If equipment is…
A: Depreciation Expenses: Depreciation expenditure is the amount that a company's assets are…
Q: In terms of economic size, the country, which is a large country, is in the state of food (F) export…
A: Answer:- Import meaning:- A import can be defined as a product or service purchased in one nation…
Q: Cash $20,000 $60,000 $160,000 $400,000 $60,000 $20,000 $140,000 Accounts Receivable Inventory…
A: Introduction: Working capital: Deduction of current liabilities from current assets derives the…
Q: Sandpiper Company has 10,000 shares of cumulative preferred 2% stock, $50 par and 50,000 shares of…
A: Formula: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value…
Q: For the past 3 years, Warrem has operated a part-time business venture from his home. As of April 1,…
A: Journal: It implies to a primary book of accounting that is used by the business for recording it's…
Q: Whispering Winds Corp. has these accounts at December 31: Common Stock, $8 par, 4.600 shares issued,…
A: Stockholder's Equity - Stockholder's Equity includes the amount contributed by shareholders issued…
Q: erious ethical violations by corporations such as Enron led to the passage o
A: The Enron scandal shook corporate America and regulators as well. The scandal involved making use of…
Q: Eliminate an Unprofitable Segment Cloud busters Aircraft Inc. makes a variety of small airplanes…
A:
Q: Rosie's Company has three products, P1, P2, and P3. The maximum Rosie's can sell is 85,000 units of…
A: Limiting factor is a constraint which limits the production level based on the shortage of the…
Q: Requirements a. What is the slope coefficient? b. What is the constant for the estimated cost…
A: Hi student Since there are multiple subparts, we will answer only first three subparts.
Q: ine will generate 568,000 per year in revenue and the direct o 7. Compute the payback period using…
A: Payback period = initial investment/cash flow per year
Q: independent appraiser at P3,000,000. Boom shares are currently traded at the stock exchange at P170.…
A: Shareholders Equity Section It is important for the business to maintain the balance of equity…
Q: There were 1,500 units in beginning inventory that were 40% complete with regard to conversion.…
A: Solution.. Ending inventory = Beginning inventory + units started in - units completed and…
Q: stockholders equity Additional Information for 2022: 1. Land of $820,000 was obtained by issuing a…
A: Cash Flow Statement - Statement of Cash Flow shows the movement of cash in the financial year. It…
Q: -the SEC requires listed firms to use GAAP on 1938 1970 1930 d 1934
A: SEC stands for Securities and Exchange commission oversees the securities exchanges, disclosure of…
Q: Racer Quadcopters plans to sell a standard quadcopter (toy drone) for $54 and a deluxe quadcopter…
A: GIVEN Rapido Quadcopters plans to sell a standard quadcopter (toy drone) for $54 and a deluxe…
Q: Balance of Cash * The trial balance for Ariel Certified Cleaners appears as follows: Ariel Certified…
A: Trial balance shows summary presented for all the general ledger account balances in the business.…
Q: A company uses the perpetual inventory system and recorded the tollowing entry: Accounts Payable…
A: The perpetual inventory system records all expenses or losses or discount related to purchases with…
Q: A firm has the following balance sheet and income statement numbers for 2020: Sales re venue $4,000…
A: The Net income is calculated from the Income statement. All the expenditure are deducted from the…
Q: Calculate the net profits (after taxes) for the following cash flows. The cash flows have not been…
A: Introduction:- Net income is the amount of profit a obtained by companies after paying all expenses…
Q: Required information Problem 11-46 (LO 11-4) (Algo) (The following information applies to the…
A: A. Adjusted basis in building = Original basis- Accumulated Depreciation = $325000 - $65000…
Q: The Real Estate Products Division of Blossom Co. is operated as a profit center. Sales for the…
A: Introduction Responsibility accounting performance report collect all the responsibility accounting…
Q: Merchandise is sold for cash. The selling price of the merchandise is $1,100 and the sale is subject…
A: When we do sales,we need pay sales tax on sales made at a percentage given.That sales tax is…
Q: June 2 Commenced business with a capital of 1,000,000 June 4 Purchased 2,000 vape at a cost of Php…
A: Answer:- T account meaning:- A T-account is a colloquial word for a collection of financial records…
Q: Wages $ 56,500 Federal withholding 5,100 Social security wages 56,500 Social security withholding…
A: Form IRS 1040 is used by US taxpayers to file theire income tax return.…
Q: ed to be. Manufacturing overhead was estimated to be $261,300 for the year along with 20,100 direct…
A: Over (under) applied overhead = Applied overhead - Actual overhead where, Applied overhead = Actual…
Q: Assuming a perpetual inventory system and the first-in, first-out method, determine (a) the cost of…
A: Introduction:- FIFO means First-in-first-out It is one of the inventory valuation method. As per…
Q: Please refer to the following information to answer question 12 and 13: Misra Company compiled the…
A: Lets understand the basics. There are three heads are there in the balance sheet which are explained…
Q: Required: 1. Compute the company's average operating assets for last year. 2. Compute the company's…
A: Accounting Ratios: Accounting Ratios are the financial ratios through which a company can analyze…
Q: A summary of selected ledger accounts appears as follows for Alberto's Plumbing Services for the…
A: The net income for the year will be added to capital account at year end.
Q: The following information pertains to Seda Co's pension plan: Actuarial estimate of projected beneft…
A: A projected benefit obligation (PBO) is indeed an actuarial assessment of how much money a company…
Q: A firm with a cost of capital of 7 percent is evaluating three independent capital projects. The…
A: Internal Rate of Return: The internal rate of return (IRR) is a financial research indicator that is…
Q: Self-Study Problem 9.7 Jeannie is employed by a business that operates a qualified profit-sharing…
A: Compensation: Compensation is the amount provided to the employee in respect of the duties and…
Q: A company signed an operating lease agreement to use office space for 5 years. The company took…
A: An operating lease is an agreement through which the owner of the asset (referred to as the lessor)…
Q: n early 2021, Amina Corp. had balances in account receivables of BD 125,000 and allowance for…
A: The allowance for uncollectible accounts is established to record the estimated bad debt expense for…
Q: A cheque returned by bank marked "R/D" means that__________.
A: Cheque: It implies to a document that reflects an order given to the bank for transferring a…
Q: Based upon the following data for a business with a periodic inventory system, determine the cost of…
A: Cost of merchandise sold means actual cost of goods that are being sold to customers. It includes…
Q: Pinnacle Co., prepares quarterly interim financial reports. The entity sells electric fans and…
A: GIVEN The provision in the first quarter was calculated at 5% of sales to date which amounted to…
Q: ABC Inc purchased $9,000 inventory during the month of November from CDE Co. CDE applied a credit…
A: Formula used: Net purchases = Purchases - Purchase returns. Deduction of purchase returns value from…
Q: Cash $7,000 Prepaid insurance 700 Accounts receivable 3,500 Accounts payable 2,800 Notes payable…
A: Introduction: Trial balance: All the final ledger accounts balances are posted in Trial balance to…
Q: Allright Test Design Company creates, produces, and sells Internet-based CPA and CMAreview courses…
A: In management accounting, the phrase Cost of Goods Manufactured (COGM) refers to a calendar or…
Q: now you would make a model-based decision to approve or disapprove the contract.
A: Firstly, contractor has 500 labour which means he has abundant human resource, which can be optimal…
Q: Q : 1 Calculate the labour “cost to company” of JP Mthembu for the week ended 13 July 2019. Q : 2…
A: Labor Cost The Calculation of labor cost which are incurred with the compensation expenses which are…
Q: Using the percentage method, what is the amount of Oklahoma income tax withheld under each of these…
A: The amount of income tax withholding under the percentage method is calculated by looking for the…
Q: Explain whether this situation presents any threats to independence and if so, explain the threats…
A: Auditing is done by the auditor which examines the financial statements of the company for which the…
Q: Performance Bike Co. has determined that the proper balance for the Allowance for Doubtful Accounts…
A: Journal entries includes the primary reporting of transactions occurring in the business.
Q: Interperlod Measurement of Productivity, Profit-Linked Measurement Helena Company needs to increase…
A: The profit-linked productivity measure helps management to understand how current year profits are…
Q: John Keeley begins operating his Black Hole Bar and Grill on 1/1/19 with an equity investment of…
A: You have posted multiple-part questions, so as per our policy only the first three sub-parts are…
Q: Choose the correct answer. How to build customer loyalty? Select one: a. Give at least 30% discount…
A: Customer loyalty means the ongoing emotional relationship among the company and the customer which…
Q: Direct Labor Costs During May, Jernigan Company accumulated 770 hours of direct labor costs on Job…
A: Total Labor Cost for Job 200 = Labor Hours * Direct labor rate = 770 * $ 16 = $ 12320
give explanations, thank you
Step by step
Solved in 2 steps
- A company decided to lease a food truck to promote sales across the country. The truck cost $65,000 and the company signed an irrevocable five-year lease. The company is trying to determine how to account for this asset. Which Financial Accounting Standards Board (FASB) guideline should the company use to report the truck? Capitalize the lease only because its non-cancellable. Capitalize the leased asset only if the company also capitalizes installment purchases. Capitalize the lease because it is a fixed asset. Capitalize the lease because it is long-term.The ABD Company began operations several years ago. The company purchased a building and, since only half of the space was needed for operations, the remaining space was rented to another firm for rental revenue of PhP1,000,000 per year. The success of ABD Company's product resulted in the company needing more space. The renter's lease will expire next month and ABD will not renew the lease in order to use the space to expand operations and meet demand. The company's product requires materials that cost PhP1,250 per unit. The company employs a production supervisor whose salary is PhP100,000 per month. Production line workers are paid PHP750 per hour to manufacture and assemble the product. The company rents the equipment needed to produce the product at a rental cost of PhP75,000 per month. Additional equipment will be needed as production expanded and the monthly rental charge for this equipment will be PhP45,000 per month. The building is depreciation on the straight-line basis at…Max's Grill leases space from Venture Real Estate. The terms of the non-renewable, four-year lease require Max to pay $5,000/month of rent. Max remodels the building by installing new non-removable flooring (a leasehold improvement) at a cost of $100,000. The flooring has an estimated useful life of 10 years with no salvage value. Max utilizes straight-line depreciation. What depreciation expense should Max record for the flooring's first full year?
- Riley Co. purchased a parcel of land six years ago for $768,500. At that time, the firm invested $120,000 in grading the site so that it would be usable. Since the firm wasn't ready to use the site itself at that time, it decided to lease the land for $41,500 a year. The company is now considering building a warehouse on the site as the rental lease is expiring. The current value of the land is $652,000. What value should be included in the initial cost of the warehouse project for the use of this land? O $858,500 O $642,000 O $888,500 O $0 O $652.000Morgan Company has recently bought all the trade, assets and liabilities of Hogan Corporation. As part of the take over, all of the combined business’s activities have been relocated at Morgan’s main site. As a result Hogan’s premises are now empty. However, just before the acquisition Hogan had signed a 3-year lease for their premises at P6,000 per month. At December 31, 2020 this lease had 32 months left to run and the landlord had refused to terminate the lease. A sub-tenant had taken over part of the premises for the rest of the lease at a rent of P2,500 per month. What amount of provision on the above onerous contract should Hogan recognize in the December 31, 2020 financial statements?Shelton Co. purchased a parcel of land six years ago for $870,500. At that time, the firm invested $142,000 in grading the site so that it would be usable. Since the firm wasn't ready to use the site itself at that time, it decided to lease the land for $52,500 a year. The company is now considering building a warehouse on the site as the rental lease is expiring. The current value of the land is $922,000. What value should be included in the initial cost of the warehouse project for the use of this land? Multiple Choice $870,500 $922,000 $1,064,000 $0 $1,012,500
- ProWasher’s lawyer, Anna Turney, informed you that ProWasher has a legal obligation to dismantle and remove the equipment used to produce the dishwashers and clean up the rental premises as part of the lease agreement. The equipment, costing $10 million, was put into production on June 1, 2023 and has a useful life of 120 months. The dismantling and removal costs are estimated to be $3 million. What is the accountant supposed to do?Shelton Co. purchased a parcel of land six years ago for $869, 500. At that time, the firm invested $141,000 in grading the site so that it would be usable. Since the firm wasn't ready to use the site itself at that time, it decided to lease the land for $52,000 a year. The company is now considering building a warehouse on the site as the rental lease is expiring. The current value of the land is $921,000. What value should be included in the initial cost of the warehouse project for the use of this land? Group of answer choices $1,062,000 $ 921,000 $0 $869, 500 $1,010, 500Shelton Company purchased a parcel of land six years ago for $869,500. At that time, the firm invested $141,000 in grading the site so that it would be usable. Since the firm wasn't ready to use the site itself at that time, it decided to lease the land for $52,000 a year. The company is now considering building a warehouse on the site as the rental lease is expiring. The current value of the land is $921,000. What value should be included in the initial cost of the warehouse project for the use of this land? Multiple Choice A. $1,010,500 B. $869,500 C. $1,062,000 D. $921,000 E. SO
- American Movieplex, a large movie theater chain, leases most of its theater facilities. In conjunction with recent operating leases, the company spent $28 million for seats and carpeting. The question being discussed over breakfast on Wednesday morning was the length of the depreciation period for these leasehold improvements. The company controller, Sarah Keene, was surprised by the suggestion of Larry Person, her new assistant. Keene: Why 25 years? We’ve never depreciated leasehold improvements for such a long period. Person: I noticed that in my review of the back records. But during our expansion to the Midwest, we don’t need expenses to be any higher than necessary. Keene: But isn’t that a pretty rosy estimate of these assets’ actual life? Trade publications shows an average depreciation period of 12 years How would increasing the depreciation period affect American Movieplex’s earnings? Does revising the estimate pose an ethical dilemma? Who would be affected if Person’s…Chesterfield Constructions Ltd owns a crane which is used based on contract for many construction projects. The entity purchased the crane in April 2015 at a cost of $2,200,000. The manager estimates that the crane will work on average for 250 days each year for 10 years and then it would be sold at an estimated residual price of $200,000. By 30 June 2020 the crane had worked for 1,200 days.In July 2020 the motor of the crane started to shudder and lose power. An assessment of the crane’s motor resulted in repairs that were required to maintain the motor at its normal efficiency. The cost of $6,000 comprised labour of $4,000 and replacement parts of $2,000. The repairs were completed by the end of July 2020. The management decided that the cost would be regarded as a capital cost. At the same time management estimated that the crane would now be used for a total of 3,000 days with an estimated residual value of $90,000. In the remainder of the financial year to 2021 the crane worked…Deliveries Ltd leased a truck from a truck dealer, City Vans Ltd. City Vans plc acquired the truck at a cost of $196,000.The truck will be painted with Deliveries Ltd’s logo and advertising and the cost of repainting the truck to make it suitable for another owner four years later is estimated to be $56,000. Deliveries Ltd plans to keep the truck after the lease but has not made any commitment to the lessor to purchase it. The terms of the lease are as follows: Date of entering lease: 1 July 2019.Duration of lease: 4 years.Life of leased asset: 5 years, after which it will have no residual value. Lease payments: $116,000 at the end of each year.Interest rate implicit in the lease: 10 per cent.Unguaranteed residual: $66,000.Fair value of truck at inception of the lease: $412,786 Required: (a) Demonstrate that the interest rate implicit in the lease is 10 per cent. (b) Prepare the journal entries to account for the lease transaction in the books of the lessor, City Vans Ltd, at 1 July…