Sergei Company purchases land for $4,000,000 from which it expects to extract 2,000,000 tons of coal. The estimated residual value is $400,000, and it mines 80,000 tons of coal in the first year. The unit depletion rate used to determine yearly depletion will be 1. $1.80 per ton. 2. $2.00 per ton. 3. $18.00 per ton.
Q: Tamarisk Company uses special strapping equipment in its packaging business. The equipment was…
A: Loss on impairment = carrying value - Recoverable amount Where, Recoverable amount = Lower of fair…
Q: The Company provided the following stockholders' equity account balances at the end of the year:…
A: Common shares are the ordinary shares issued by the company to the common shareholders. Treasury…
Q: b) Discuss four possible causes for each of the following variances: (i) Materials usage (ii)…
A: Variance analysis is the analysis of the actual results of the operations with the standards of the…
Q: An initial $2000 investment is made that returns profits of $1000 and 1500 in the first and second…
A: Real interest rate is the rate that is inflation adjusted. Formula: Real Interest rate = [(1+…
Q: Observation of the four previous months has identified the following total cost data for production…
A: Formula under High low method: Variable cost per unit = (Highest activity cost - Lowest activity…
Q: The books of ABC Corp disclosed a cash balance of P687,000 at Dec 31. Additional information showed…
A: Bank reconciliation: It is a statement drawn up by the business to verify the cash book balance with…
Q: 3. What if the recession led Shalimar's top management to assume that in the next year 10 percent of…
A: Cash budget means the expected cash receipts and expected cash payment for the next year. Cash…
Q: On January 1, 2020, Charmaine Company entered into an eight-year lease for an equipment. Charmaine…
A: Carrying value represents the value of the asset which is based on the balance sheet of the company.…
Q: ecifying that ownership of the ferry will transfer to the lessee at the end of the nual lease…
A: Leas Accounting
Q: Selling price 24 93 per unit Current sales 10, 700 units Break-even sales 8, 346 units What is the…
A: Introduction: Margin of safety in sales = Actual sales - Break even sales value Deduction of Break…
Q: Required information [The following information applies to the questions displayed below.] On…
A: Introduction:- The act of recording or keeping track of any financial or non-financial action is…
Q: Preference shares, as noted in AASB 132: Select one: a. will have their classification as debt or…
A: A financial instrument is any contract that have either financial assets of an entity or financial…
Q: Novo, Inc., wants to develop an activity flexible budget for the activity of moving materials.Novo…
A: Disclaimer: “Since you have posted a question with multiple sub-parts, we will solve first three…
Q: Upon admission of Apple, which of the following statements is FALSE? The capital balance of…
A: Partnership means a group of persons who come together with a purpose to control and manage the…
Q: In a market with a binding price ceiling, an increase in the ceiling will ______ the quantity…
A: Price ceiling is a method used by the government to regulate price of the product in the market. It…
Q: 1.1. Nhyiraba Limited lease a building worth R4 million to Quintin Limited under an operating lease…
A: Investment Property: It is property (land or a building or part of a building or both) held (by the…
Q: USE THE AMORTIZATION TABLE TO ANSWER THIS QUESTION: Bob Jones bought a new log cabin for $…
A: Given information Log Cabin Price = $325,000 Down Payment = 20% Interest rate = 8% for 30 years No…
Q: Low Falls Corporation (lessor) entered into a lease agreement on January 1, 2017, to provide Amazon…
A: PV of the asset that the LESSOR should use to compare with the underlying asset’s fair value is the…
Q: Berring Company produces two products: the deluxe and the standard. The deluxe sells for $40, and…
A: For Sales Budget, Units * Unit price = Sales For Production Budget Sales units + Desired ending…
Q: Home Office collected 100,000 from Branch’s customers on account. Requirements: a. Prepare the…
A:
Q: Belpre, Inc. owes $90,000 to William's Drones Co. for inventory acquired with terms of 3/15, n/30.…
A: Formula used: Discount amount = Invoice amount x Discount rate.
Q: Dawn Mining Company mines selum, a commonly used material. The following i pany's report of its…
A: Standard Costing -Variance Analysis
Q: A and B are partners in AB Partnership sharing profits and losses 25% and 75%, respectively. On…
A: The partnership may revalue assets if the evaluation increases the value of the asset, it will be a…
Q: FlashKick Company manufactures and sells soccer balls for teams of children in elementary and high…
A: Lets understand the basics. Budget is a future estimation of profit and loss. Management first…
Q: Angelo Company decided to enter the leasing business. The entity acquired a specialized packaging…
A: Given information, Acquisition cost of the machine =P2,300,000 Residual value of the machine…
Q: Prepare journal entries for the current year. 2. Compute the carrying amount of the investment at…
A: Investee is the company in which an investment is made by the investor and an investor can be anyone…
Q: vThe following data relate to the operation of Riverbed Co.s pension plan in 2021. Service cost…
A: It is a worksheet prepared to determine the pension expense be accrued for the year along with the…
Q: ich of the following was part of the U.S. government’s response to the credit crisis? a) Troubled…
A: Basic Concepts of Accounts and business
Q: CJ decided to withdraw from his partnership with TF and LX. Before his withdrawal, CJ’s capital…
A: Partnership means the form of business where two or more person joins together to run the business…
Q: Dexter Industries purchased packaging equipment on January 8 for $116,600. The equipment was…
A: Introduction: Depreciation occurs when assets lose value over time until the asset's worth is zero…
Q: Conceptually, the main difference between financial accounting and managerial accounting is that…
A: Internal users are the users that work for the company for its internal growth i.e., managers,…
Q: Please help prepare Financial position and comprehensive income statement
A: Statement of comprehensive income shows all incomes and all expenses in the business and at the end…
Q: 1. The machine costs P210 000 and expected to have a salvage value of P15 000 after 12 years.…
A: Given information, Cost of the machine =P210,000 Useful life =12 years Salvage value =P15,000…
Q: Perform a horizontal analysis for the entry "Gross Sales" shown on the income statement portion…
A: Comparative financial statements are helpful in analyzing the financial situation of the business…
Q: How do cash dividends affect the realized rate of return from investing in shares of common stock
A: Cash dividends are distribution of profits earned by a company is cash. These are inflows for…
Q: The balance sheets for Crosby Inc. and Gretzky Company reflect the following. Crosby Inc Gretzky…
A: For Crosby Inc. a. Total liabilities to equity ratio = (Current liabilities + long term…
Q: Direct Labor Budget for Service The School of Accounting (SOA) at State University is planning its…
A: preparation of direct labor budget in both situation are as follows
Q: what is the capital allowance rate for Honda Motor car, Heavy Equipment, Computer (CPU) and Factory…
A: The capital allowance is a type of tax deduction that is provided by the government for each type of…
Q: MC12 On January 1, 2019, Villanueva Company classified noncurrent assets as held for sale that had a…
A: Assets Held for Sale The measurement of assets held for sale either by the carrying amount or the…
Q: Tiger Drug Store carries a variety of health and beauty aids, including 500-count bottles of…
A: Solution:- 1)Preparation of a merchandise purchases budget in bottles of vitamins for as many…
Q: Operating Budget, Comprehensive Analysis Ponderosa, Inc., produces wiring harness assemblies used…
A: Budgeted Income statement is the statement is also called budget statement, this statement helps to…
Q: Firing Department RM 405,000 Polishing Department Total RM RM Overhead 110,000 515,000 Direct labour…
A: The predetermined overhead rate is calculated as estimated overhead cost divided by estimated base…
Q: (a) Compute the weighted-average accumulated expenditures on Phipps' new building during the…
A: Weighted average accumulated expenditure qualifying for capitalisation of interest cost: Date…
Q: Financial information for Forever 18 includes the following selected data: ($ in millions) 2024…
A: Solution 2a: 2024 2023 Net Income $160.00 $171.00 Less: Dividend on Preferred Stock $22.00…
Q: Activity-base usage data for each line of insurance were retrieved from the corporate records and…
A: Disclaimer: “Since you have posted a question with multiple sub-parts, we will solve the first three…
Q: Chel Company acquired 70% of the outstanding stock of Leila Co. on January 1, 2022. The consolidated…
A: The cost of investment is the amount of consideration paid to acquire the interest in a company by…
Q: Choose the answer which is not true about the conceptual framework for financial reporting. a. the…
A: The conceptual framework for financial reporting is a theory that that provides the basic reasonings…
Q: The following information is available for a company. How much of the factory rent should be charged…
A: As per activity based costing Factory rent should be apportioned as per floor area basis
Q: Branch total sales to date on account is 600,000 and cash 100,000. Requirements: a. Prepare the…
A: The business transaction is firstly recorded using the journal entry. It is the first phase where…
Step by step
Solved in 2 steps
- Underwoods Miners recently purchased the rights to a diamond mine. It is estimated that there are two million tons of ore within the mine. Underwoods paid $46,000,000 for the rights and expects to harvest the ore over the next fifteen years. The following is the expected extraction for the next five years. Year 1: 50,000 tons Year 2: 900,000 tons Year 3: 400,000 tons Year 4: 210,000 tons Year 5: 150,000 tons Calculate the depletion expense for the next five years and create the journal entry for year one.Gimli Miners recently purchased the rights to a diamond mine. It is estimated that there are one million tons of ore within the mine. Gimli paid $23,100,000 for the rights and expects to harvest the ore over the next ten years. The following is the expected extraction for the next five years. Year 1: 50,000 tons Year 2: 90,000 tons Year 3: 100,000 tons Year 4: 110,000 tons Year 5: 130,000 tons Calculate the depletion expense for the next five years, and create the journal entry for year one.Utica Machinery Company purchases an asset for 1,200,000. After the machine has been used for 25,000 hours, the company expects to sell the asset for 150,000. What is the depreciation rate per hour based on activity?
- Montello Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is expected to be driven for 120,000 miles. Montello uses the units-of-production depreciation method and in year one it expects to use the truck for 23,000 miles. Calculate the annual depreciation expense.Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is expected to be driven for 125,000 miles. Montello uses the units-of-production depreciation method, and in year one the company expects the truck to be driven for 26,000 miles; in year two, 30,000 miles; and in year three, 40,000 miles. Consider how the purchase of the truck will impact Montellos depreciation expense each year and what the trucks book value will be each year after depreciation expense is recorded.XYZ Company purchased land for P6,000,000. The company expected to extract 1 million tons of mine from this land over the next 20 years at which time, residual value will be zero. During the first two years of the mine's operations, 30.000 tons were mined each year and sold for P80 per lon. The estimate of the total remaining lifetime capacity of the mine was estimated to be P480,000. Duning the third year, 50,000 tons were mined and sold for P85 per ton. How much would be the depletion for the third year?
- Maggie Sharrer Company expects to extract 20 million tons of coal from a mine that cost $12 million. Ifno salvage value is expected and 2 million tons are mined in the first year, the entry to record depletion will include a O a. Debit to inventory of $1,200,000 O b. Debit to accumulated depletion of $2,000,000 Oc. Credit to accumulated depletion of $2,000,000 Od. Credit to depletion expense of $1,200,000Gomez Corporation purchased land for P 6,000,000. The company expected to extract 1,000,000 tons of mine from this land over the next 20 years at which time, the residual value will be zero. During the first 2 years of the mine’s operations,30,000 tons were mined each year and sold for P 80 per ton. The estimate of the total lifetime capacity of the mine was raise to 1,200,000 tons at the start of the 3rd year and the residual value was estimated to be P 480,000. During the third year, 50,000 tons were mined and sold for P 85 per ton. How much would be the depletion for the third year? a. 215,000 c. 225,000 b. 227,500 d. 235,000Rogers Mining Company purchased a coal mine for $5,000,000 and expects yield of 8,000,000 tons of coal during the next 10 years. Rogers expenses the coal when sold. What is the gross profit for year 1 if 725,000 of the 940,000 tons extracted is sold for $12 per ton? $10,692,500 $8,246,875 $8,112,500 O $8,200,000
- A mineral mining company expects to produce 60, 000 tons of minerals annually for 5 yrs. The deposit cost $150,000 to acquire. Annual gross revenues are expected to be $9/ton. Net revenues are projected to be $4/ton. a. Compute annual depletion on a cost basis b. Compute annual depletion on a percentage basisThe Weber Company purchased a mining site for $1,750,000 on July 1. The company expects to mine ore for the next 10 years and anticipates that a total of 400,000 tons will be recovered. The estimated residual value of the property is $150,000. During the first year, the company extracted 6,500 tons of ore. The depletion expense is $26,000 $15,000 $16,000 $17,500Petroleum drilling equipment costs a company $125,000. The equipment has an estimated salvage value of $30,000. What is the allowable depreciation for this equipment in year 3? a. $18, 240 b. $19,000 c. $24,000 d. $25,000 A project costs $80,000 initially and will have a $15,000 salvage value after 3 years. The operating cost with this method will be $30,000 in year 1, increasing by $4000 each year. What is the PW of this project? I = 12% a. $12, 338 b. $150, 377 c. $-150,260 d. $2731