ROBL MOVING ON Co. has been undergoing liquidation since January 1. As of March 31, its condensed statement of realization and liquidation is presented below. Assets: Assets to be realized Assets acquired Assets realized P206,250 112,500 180,000 206,250 Assets not realized Liabilities: Liabilities liquidated Liabilities not liquidated Liabilities to be 281,250 255,000 337,500 liquidated Liabilities assumed 243,750 Revenue and expenses: Supplementary charges Supplementary credits 468,750 420,000 16. The net gain (loss) for the three-month period ending March 31 is A. (25,000) B. 25,000 C. (63,750) D. 63,750

ROBL MOVING ON Co. has been undergoing liquidation since January 1. As of March 31, its condensed statement of realization and liquidation is presented below. Assets: Assets to be realized Assets acquired Assets realized P206,250 112,500 180,000 206,250 Assets not realized Liabilities: Liabilities liquidated Liabilities not liquidated Liabilities to be 281,250 255,000 337,500 liquidated Liabilities assumed 243,750 Revenue and expenses: Supplementary charges Supplementary credits 468,750 420,000 16. The net gain (loss) for the three-month period ending March 31 is A. (25,000) B. 25,000 C. (63,750) D. 63,750

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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You have been engaged to examine the books and other records of Golden Harvest Corporation, which started its operations in 2020. Your examination disclosed the following information: (1) Reported profit (loss) for the year: 2020 2021 2022 P(250,000) 320,000 380,000 (2) The company during the three-year period failed to recognize accruals and deferrals at yearend. The amounts omitted were as follows: Accrued expenses Accrued income Prepaid expenses Unearned income 2020 P20,000 32,000 12,000 15,000 2021 P25,000 30,000 18,000 10,000 2022 P30,000 26,000 24,000 8,000 (3) Goods which were in transit at yearend were omitted from the physical count. These goods had been property recorded as purchases during the year: P28,000 64,000 End of 2021 End of 2022 (4) The company purchased a machine costing P80,000 on August 31, 2020. The amount was recorded as expense. The company depreciates all its property, plant and equipment using the straight-line method, rounded to the nearest month and…
Nissan Corporation is undergoing liquidation. On January 1, 2020 its Statement of Financial Position showed the following accounts: ASSETS Cash P 150,000 Accounts Receivables-net 290,600 Inventory 50,000 Prepaid Expenses 10,400 Building 380,000 Goodwill 80,000 TOTAL P 961.000 LIABILITIES AND EQUITY Salaries Payable P 85,000 Accounts Payable 120,700 Mortgages Payable 428,000 Loan Payable 130,000 Notes Payable 84,300 Ordinary Shares 170,000 Deficit (57,000) TOTAL P961.000 The mortgage payable is secured by the Building having a realizable value of P400,000. Accounts Payable amounting to P75,000 is secured by receivables amounting to P90,600 (P9,900 of which is uncollectible). The balance of receivables which has a realizable value of P187,500 is used to secure the loan payable. Inventory has a realizable value of P41,200. In addition to recorded liabilities are: accrued interest on mortgage payable amounting to P4,280,…
The COCO Manufacturing Company has been forced into bankruptcy as of April 30, 2022. The statement of financial position on that date shows: ASSETS:Cash P 2,700Accounts Receivable 39,350Notes Receivable 18,500 Inventories 87,850Prepaid Expenses 950 Land and Buildings 61,250Equipment 48,800 Retained Earnings (30,850)Total ? LIABILITIES AND EQUITY: Accounts Payable P52,500 Notes Payable - PNB 15,000 Notes Payable - Suppliers 51,250 Accrued Wages 1,850 Accrued Taxes 4,650 Mortgage Bonds Payable 90,000 Common Stock - P 100 par 75,000 Total ? Additional Information:▪Accounts Receivable of P 16,110 and Noted Receivable of P 12,500 are expected to be…
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Part A Albert Trading Limited used the statement of financial position approach to estimate the impairment loss of receivable. An aging of account receivable at 31 December 2019 revealed that S68,000 of the $835,000 outstanding accounts receivable will prove uncollectible. The Allowance for Impairment has a debit balance of $6,200 prior to adjustment. Required: (Explanation of the Journal Entry is not required) Prepare an adjusting entry on 31 December 2019 to recognize the impairment loss of receivable. Part B On 12 January 2020, Peter Lee, a major customer, declared bankruptey, and Albert Trading, determined that a receivable from Peter Lee in the amount of $3,400 was worthless. Required: (Explanation of the Journal Entry is not required) Prepare the journal entry required by Albert Trading in this situation.
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Nissan Corporation is undergoing liquidation. On January 1, 2020 its Statement of Financial Position showed the following accounts: ASSETS Cash P 150,000 Accounts Receivables-net 290,600 Inventory 50,000 Prepaid Expenses 10,400 Building 380,000 Goodwill 80,000 TOTAL P 961.000 LIABILITIES AND EQUITY Salaries Payable P 85,000 Accounts Payable 120,700 Mortgages Payable 428,000 Loan Payable 130,000 Notes Payable 84,300 Ordinary Shares 170,000 Deficit (57,000) TOTAL P961.000 The mortgage payable is secured by the Building having a realizable value of P400,000. Accounts Payable amounting to P75,000 is secured by receivables amounting to P90,600 (P9,900 of which is uncollectible). The balance of receivables which has a realizable value of P187,500 is used to secure the loan payable. Inventory has a realizable value of P41,200. In addition to recorded liabilities are: accrued interest on mortgage payable amounting to P4,280,…
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Wright Corporation had the following permanent accounts and ending balances on December 31, 2019 (before adjusting entries): Dr. ($) Cr. ($) Cash 400,000 Equipment 1,600,000 Bonds payable 950,000 Retained earnings 300,000 Allowance for Doubtful Accounts 9,000 FV-OCI investments 600,000 Inventory 720,000 Accumulated Depreciation-Equipment 120,000 Accounts payable 560,000 Accounts receivable 320,000 Common shares 1,700,000 Accumulated OCI 30,000 Prepaid insurance 20,000 FV-NI investments 180,000 There were no transactions recorded in Allowance for Doubtful Accounts during the year. The company should recognize bad debt expenses for $7,000 at the end of 2019. The company prepaid $20,000 for one-year insurance becoming effective on April 1, 2019. The company purchased the equipment on July 1, 2017, and estimated that the…
Compute RNOA with Disaggregation Refer to the balance sheet information below for Home Depot. Feb. 3, 2019 Jan. 28, 2018 $14,357 $13,918 605 1,222 $14,962 $15,140 $5,671 $5,456 9,929 9,190 $15,600 $14,646 $36,789 31,509 5,280 331 $ millions Operating assets Nonoperating assets Total assets Operating liabilities Nonoperating liabilities Total liabilities Net sales Operating expense before tax Net operating profit before tax (NOPBT) Other expense Income before tax Tax expense Net income a. Compute return on net operating assets (RNOA). Assume a statutory tax rate of 22%. Note: 1. Select the appropriate numerator and denominator used to compute RNOA from the drop-down menu options. 2. Enter the numerator and denominator amounts to compute 2018 RNOA. Numerator Denominator ♦ 4,949 1,168 $3,781 0 $ ♦ 0 RNOA %