Problem II Steel Company has the following assets: Co ffee plants 100,000 Harve sted coffee beans 40,000 Harve sted mangoes 200,000 Timber trees 600,000 Mango trees 800,000 Fe lled trees 300,000 W ooden furniture 700,000 Required: Compute for the amounts of the following: 1. Biological assets 2. Agricultural produce 3. Property, Plant and Equipment 4. Inventoriesagri

Problem II Steel Company has the following assets: Co ffee plants 100,000 Harve sted coffee beans 40,000 Harve sted mangoes 200,000 Timber trees 600,000 Mango trees 800,000 Fe lled trees 300,000 W ooden furniture 700,000 Required: Compute for the amounts of the following: 1. Biological assets 2. Agricultural produce 3. Property, Plant and Equipment 4. Inventoriesagri

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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Agritech constructed an warehouse with the capacity storage of 25,000 MT of products at the cost of RM15,000,000. Over the period its accumulated expenditures are RM5, 800,000 with a interest on actual basis were at RM370,000. It was estimated the useful life of warehouse will be 40 yrs with salvage value of RM1,250,000. Compute depreciation for 1st year using straight line.
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Topic: AGRICULTURE Requirements: 1. How much is classified as biological assets that are accounted for under PAS 41 Agiculture? 2. How much is classified as property, plant and equipment that are accounted for under PAS 16 Property, Plant and Equipment? 3. How much is classified as agricultural produce? 4. How much is classified as inventory?
I need help understanding PP&E please, thank you!
This question relate with MFRS 116 (Property, Plant and Equipment)
Required information [The following information applies to the questions displayed below.] Last Chance Mine (LCM) purchased a coal deposit for $2,088,450. It estimated it would extract 17,550 tons of coal from the deposit. LCM mined the coal and sold it, reporting gross receipts of $1.15 million, $4.35 million, and $3.1 million for years 1 through 3, respectively. During years 1-3, LCM reported net income (loss) from the coal deposit activity in the amount of ($15,400), $667,500, and $662,500, respectively. In years 1-3, LCM extracted 18,550 tons of coal as follows: (Leave no answer blank. Enter zero if applicable. Enter your answers in dollars and not in millions of dollars.) (1) Tons of Coal 17,550 (2) Basis $2,088,450 Depletion (2)/(1) Rate $119.00 Year 1 2,400 Tons Extracted per Year Year 2 11,450 Year 3 4,700 c. Using the cost and percentage depletion computations from parts (a) and (b), what is LCM's actual depletion expense for each year? Depletion Expense Year 1 Year 2 $…
1. In 20X4, ABC Mining Inc. purchased land for P5,600,000 that had a natural resource supply estimated at 4,000,000 tons. When the natural resources are removed, the land has an estimated value of P640,000. The required restoration cost for the property is estimated to be P800,000. Development and road construction costs on the land were P560,000, and a building was constructed at a cost of P88,000 with an estimated P8,000 salvage value when all the natural resources have been extracted. During 20X5, additional development costs of P272,000 were incurred, but additional resources were not discovered. Production for 20X4 and 20X5 was 700,000 tons and 900,000 tons, respectively. Round depletion and depreciation rates to 2 decimal places. In the year 20X5, the total inventoriable cost is?
1 account treatment opotiom: capitalized/ depreciated or expensed
4- A storage company constructed a small building to store its unused vehicles and other moveable assets. The costs incurred in constructing the building include the following: Contractor's costs Direct materials and labour Technical overheads General administrative overheads Interest costs in financing the construction RM 300,000 50,000 12,520 8,000 3,000 373,520 The company purchased RM 50,000 of materials for the construction: however due to technical inaccuracies in estimating the necessary number of materials for the construction, only RM 48,000 of materials were used. In addition, during the construction, several labours were affected with an infectious disease. The disease had disrupted the construction and cost the company a further RM 15,000. Determine the cost of the building for capitalization.
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(a) Niasha Stores recently imported an item of plant from Grenadines Plants Ltd. The following information has been made available with regards to the purchase: Details $ Basic list price 3,000,000 Other costs: Transportation and handling 100,000 Pre-production testing 200,000 Holding structure for plant 350,000 Electrical inputs for plant 120,000 Own labour costs 250,000 Estimated maintenance costs for 5 years 300,000 The plant is expected to be useful for 8 years. At the end of this time, it will cost $180,000 to dismantle the plant and $140,000 to restore the site to its original state and use. Trade discount applicable to the purchase of the plant was 15% on the list price. Niasha Stores had made an error in purchasing electrical inputs amounting to $20,000. This cost was included in the above figure. In order to get the plant into the country Niasha Stores was charged 20% import duties on the basic list price. Niasha…
The following was the expenditure on a contract for $600,000 Material $120,000Wages $164,000 Plant $ 20,000Overheads $8,600Cash received on account of the contract was $240,000 being 80% of the work certified. The Value of material in hand was $10,000. The plant has undergone 20% depreciation. Calculation the profit on this incomplete contract by preparing a contract account.