1Joseph Company purchased equipment on March 31, 2025 for P800,000. The company spent P30,000 for its freight and P50,000 for taxes and otherexpenses incidental to acquisition. The equipment can be sold for P40,000 after 10 years. It is estimated to produce 336,000 units of product X.The equipment production of product X for the first 5 years follow:Units of product XYear36,00034,50032,50031,00028,500Compute for the Book Value of equipment as of December 31, 2028 using straight-line method.20252026202720282029Round off your answer to the nearest peso. Write the absolute value. Answer should be numeric. 5Joseph Company purchased equipment on Jan. 1, 2025 for P800,000. The company spent P30,000 for its freight and P50,000 for taxes and other expensesincidental to acquisition. The equipment can be sold for P40,000 after 10 years. It is estimated to produce 336,000 units of product X.The equipment production of product X for the first 5 years follow:YearUnits of product X2025202620272028202936,00034,50032,50031,00028,500Compute for the Gain or loss on sale of equipment on September 30, 2030 for P350,000 using straight-line method.Round off your answer to the nearest peso. Write the absolute value. Answer should be numeric. No need to write () or - for losses. No need to writegain or loss.

Depreciation under straight line method is calculated by dividing the total cost of the asset (less…

Answered: production of product X for the first 5…

production of product X for the first 5 years follow: nits of product X 36,000 34,500 32,500 31,000 28,500 Book Value of equipment as of December 31, 2028 using straight-line met

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

Swifty Construction Company has entered into a contract beginning January 1, 2020, to build a parking complex. It has been estimated that the complex will cost $598,000 and will take 3 years to construct. The complex will be billed to the purchasing company at $894,000. The following data pertain to the construction period. 2020 2021 2022 Costs to date $263,120 $412,620 $607,000 Estimated costs to complete 334,880 185,380 –0– Progress billings to date 272,000 545,000 894,000 Cash collected to date 242,000 495,000 894,000 (a) Using the percentage-of-completion method, compute the estimated gross profit that would be recognized during each year of the construction period. (If answer is 0, please enter 0. Do not leave any fields blank.) Gross profit recognized in 2020 $ Gross profit recognized in 2021 $ Gross profit recognized in 2022 $ (b) Using the completed-contract method, compute the estimated…
In case of communication system development, the plan of improvement contains: • the initial cost is $6 M • additional annual cost of $3000 with lifetime 50 years and i=5%. The annual worth of this plan is: Select one: a. $-28680 b. $-328680 c. $-331680 d. $-3000
our firm is considering purchasing a machine with the following annual, end-of-year, book investment accounts. Purchase Date Year 1 Year 2 Year 3 Year 4 Gross investment $ 55,000 $ 55,000 $ 55,000 $ 55,000 $ 55,000 Less: Accumulated depreciation 0 13,750 27,500 41,250 55,000 Net investment $ 55,000 $ 41,250 $ 27,500 $ 13,750 $ 0 The machine generates, on average, $5,300 per year in additional net income. What is the average accounting return for this machine? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) AAR %
48. ABC Construction Company began work on a contract in 2022 and completed the contract in 2023. The total contact price was P8,500,000. Information related to the construction project are as follows: 2022 2023 Costs incurred during the year P1,200,000 P6,250,000 Estimated costs to complete 4,800,000 - Progress billings during the year 1,450,000 7,050,000 Collections during the year 800,000 6,000,000 How much is the receivable balance as of December 31, 2023?
The Leto Construction Company began work on a $15,000 contract on 1/1/22. Planned completion was in 2024. The Percentage-of Completion method is used. Given the following at 12/31/22: Costs incurred to date Estimated costs to complete Billings to date Collections to dato December 31, 2022 $2,500 9,500 4,000 3,800 The balance sheet location and the net amount of the 12/31/22 Combined CIP and Billings accounts are: Select one: a. Current Liability of $1,500 O b. Current Liability of $200 O c. Current Asset of $1,500 d. Current Liability of $875
GinebraCorporation recognizes construction revenue and cost using the percentage of completion method. During 2021, a single long-term project was begun which continued through 2021. Information on the project follows: 2021. 2022 Partial billing on contract 1,000,000. 4,200,000 Accounts receivable 1,000,000 3,000,000 Construction cost 1,050,000 1,920,000 Construction in progress 1,220,000 3,640,000 What is the gross profit recognized from this long-term construction contract in year 2021 and 2022, respectively? 2021 2022 A.220,000. 2,280,000 B.170,000. 500,000 C.220,000. 1,000,000 D.170,000. 1,280,000
RLC Manufacturing is planning to purchase a cutting equipment. Information are as follows: Equipment 1 Equipment 2 First Cost P 12,000 P 18,000 Salvage Value P 600 P 2,000 Annual Operation P 3,200 P 2,500 Annual Maintenance P 1,200 P 1,000 Taxes & Insurance 3% 3% Life, years 10 15 Money is worth at least 16%. Which equipment should be selected? Use: Annual Cost Method
8. On January 1, 2019, Sapphire Manufacturing Company purchased a machine for $40,000,000. The company expects to use the machine for 24,000 hours over the next six years. The estimated residual value of the machine at the end of the sixth year is $40,000. The schedule of usage of the machine is below. Year Usage 1 4,500 2 6,000 3 5,200 4 4,300 5 2,000 6 2,000 Prepare the depreciation schedule using the units-of-production method of depreciation.
profile-image Time remaining: 00 : 09 : 41 Accounting We have the following data for a power plant: 1 MW CENTRAL ECONOMIC BALANCE Power: 1 Mwa Maintenance cost: 3% per year Initial cost of operation: 5% per year Regulated Rate: $0.015/kWh (20 years) Project cost = $750,000.00 Plant factor= 60% Energy: 5256000 KWh Income from regulated tariff: 78840 Annual revenue increase: 6% Initial maintenance cost/year of annual maintenance (2% installation): $ 22,500.00 Annual maintenance increase: 5% Initial cost of operation/year (1% Installation) $ 37,500.00 Annual operation increase: 3% It is assumed that in year 10, an equipment update will be carried out whose cost will be 25% of the value of the investment = $187,500.00 SOLVE: In what year will the investment be recovered?
new manufacturing plant. The plant was completed on On June 1, 2020, Circus Company began conatruction ofa Problem 15-18 (RAA) October 31, 2021. Expenditures on the project were: 5,000,000 3,000,000 3,000,000 2,000,000 2,000,000 500,000 1, 2020 October 1, 2020 February 1, 2021 1, 2021 July April September1, 2021 October 1, 2021 On July 1, 2020, the entity obtained a P7,000,000 construction loan with a 6% interest rate. The loan was outstanding through the end of October 2021. The only other interest-bearing debt was a long-term nete for P15,000,000 with an nterest rate of 8%. This note was outstanding during 2020 and 2021. The fiscal year-end is December 31. mm 1 What amount of interest should be capitalized in 2020? a 210,000 b. 195.000 c. 390,000 d. 420.000 2. What amopunt of interest should be capitalized in 20217 1.000.000 b. 1.350,000 700,000 P. a. 3. What is the interest.expense for 20217 a. 1200.000 887.000
Reference: Case Study S Dunn Manufacturing is considering the following two alternatives. The cost information for the two proposals for replacing an equipment are provided are in table below. Initial cost Benefits/year Machine X $120,000 $20,000 for the first 10 years and $9,000 for the next 10 years Life Salvage value $40,000 MARR 5.2. The NPW of machine X is A) $35,158 B) $48,192 C) $50,752 Machine Y $96,000 $12,000 per year for 20 years. 20 years 8% $20,000