The Commonwealth
Q: On Monday Kyle had $525 in his bank account. Tuesday he spent $75 on groceries, on Wednesday he paid…
A: BANK RECONCILIATION Bank Reconciliation is the Summary of Bank Balance & Business Account.…
Q: Cramer Corporation, a calendar year, accrual basis corporation, reported $1.60 million of net income…
A: Income tax is a tax on total income computed as per the provision of Internal revenue…
Q: Chapter 10 homework A eBook Problem 10-8 Partnership Formation (LO 10.2) Kele and Nova wish to form…
A: “Since you have posted a question with multiple sub-parts, we will provide the solution only to the…
Q: MCK Inc. purchased on January 1, 2021, $600.000. 6% bonds of Aguirre Co. for $536,621. The bonds…
A: When the issue price of a bond is lower than the face value then, it is called to be issued…
Q: Concord Corporation's charter authorized issuance of 96,000 shares of $10 par value common stock and…
A: The company issues either common shares or preferred shares. When the company issues these shares…
Q: Transactions March 3 May 16 Distributed a 7% stock dividend on the 95,000 common shares outstanding.…
A: The accounting equation must always be in balance. This means that the total value of assets must…
Q: Problem 17-40 (Algo) Prorating Overhead Costs (LO 17-1) Parkeville Company manufactures a single…
A: The variances analysis is a tool used by the management to control costs. The variance help to…
Q: Tabitha sells real estate on March 2 of the current year for $308,800. The buyer, Ramona, pays the…
A: Property tax also referred to as the real estate tax is the tax calculated on the value of the…
Q: Pharoah Company uses the percentage-of-receivables basis to record bad debt expense and concludes…
A: If there is a debit balance in the allowance for doubtful accounts, its balance is added to the bad…
Q: If Job 400 in If Moody uses a markup percentage of 110% of its total manufa or Job 4002
A: Calculation of Fixed Manufacturing Overhead Per Machine Hour
Q: (a) Prepare a schedule of changes to the acquisition differential for the four year period ending…
A: Consolidated Net Income : After deducting all costs, taxes, and other charges, a company's…
Q: Sheridan Company has a new product going on the market next year. The following data are projections…
A: Desired profit :— It is calculated by multiplying investment amount with ROI. Markup percentage…
Q: Example 2-4 Alfred Sim is a tipped employee who normally works a 40-hour week and averages over $300…
A: Gross pay is what workers earn before taxes, advantages and different payroll deductions are…
Q: BJS Ltd produces and sells the following three products Product Selling price per unit VC per unit…
A: BREAK EVEN SALES (REVENUE) = FIXED COST / P/V RATIO P/V RATIO = CONTRIBUTION / SALES *100
Q: Required information [The following information applies to the questions displayed below.] Shadee…
A: Lets understand the basics. Management prepares budget to estimate future profit and loss account…
Q: Exercise 13-5 (Algo) Determining income effects from common-size and trend percents LO P1, P2…
A: Trend Analysis - Trend Analysis is a technique of calculating percentage on the basis of comparing…
Q: Given the following for the Titan Company; the company began operations on 1/1/1. Preferred Stock,…
A: Cumulative preference shares are the class of preference shares where the preference shareholders…
Q: Oriole's Auto Care is considering the purchase of a new tow truck. The garage doesn't currently have…
A: Over a predetermined time period, the cash inflows and outflows related to the investment are…
Q: Match each type of investment with its definition by selecting the correct term from the drop down…
A: The definition of an investment is an asset that is purchased or invested in with the intention of…
Q: Shaylee Corporation has $2.00 million to invest in new projects. The company's managers have…
A: Profitability index = Present value of cash inflows ÷ Initial investment. Project with highest…
Q: At the end of the current year, Accounts Receivable has a balance of $790,000; Allowance for…
A: ALLOWANCE FOR DOUBTFUL DEBT ACCOUNTAllowance for Doubtful Debt Account is Considered as Contra Asset…
Q: Ford Legal Services (FLS) is considering adding a new line of simplified wills and estate plans to…
A: The break even sales are the sales where business earns no profit no loss during the period. The…
Q: Required: a. Calculate cost of goods sold and ending inventory under the following cost flow…
A: a. Units Rate cost Beginning Inventory 1000 $4 $4,000 Purchases 1200…
Q: "Managerial Accounting" course Q5) It costs a company $14 of variable costs and $6 of fixed costs to…
A: Variable costs are the expenses that are directly related to the production of a product. For…
Q: a. Determine Joe and Jessie's AGI and taxable income for the year. (Round your intermediate…
A: Taxable income refers to the income that is taxable in the hands of the taxpayer. In a nutshell, it…
Q: table, what is the share price when the price to book (P/B) multiple of a comparable company is…
A: Ratio analysis used identify the business performance of the company. It is used to measure…
Q: Mercury, Incorporated, produces cell phones at its plant in Texas. In recent years, the company's…
A: The quality cost report is prepared using the four quality cost classified based on prevention…
Q: Calculate the materials variance, and the price and quantity variances, assuming the purchase price…
A: it is important to consider the role of variance in cost-benefit analysis and to carefully assess…
Q: Sells at of $48 for a unit, direct material $17, direct labour $12 dollar, and overhead $16 (75%…
A: Lets understand the basics.In special order situation, management needs to choose whether to accept…
Q: On January 1, 2019, ET Mags Inc. signed a 6-year non-cancelable lease for an alloy wheel molding…
A: Explanation of Concept In the present case we shall records the lease liability in the books of…
Q: Assess the following accounting adjustments and identify the type of adjustment required and…
A: Generally the accounting period is of 12 months. When any income is received or expense is incurred…
Q: Required information Use the following information for the Exercises below. (Algo) [The following…
A: Cost Volume profit (CVP) analysis is one of the important analysis performed in cost accounting.…
Q: For the current year, LNS corporation reported the following taxable income at the end of its first,…
A: Taxable income comprises all forms of remuneration, whether cash or services, as well as property.…
Q: Analyzing an Inventory Footnote Disclosure Illinois Tool Works reports the following footnote in its…
A: LIFO reserve is also known as LIFO allowance, revaluation to LIFO and excess of FIFO over LIFO cost.…
Q: Nancy's Notions pays a delivery firm to distribute its products in the metro area. Delivery costs…
A: Internal rate of return (IRR) refers to the rate at which the Net present value (NPV) of a project…
Q: party
A: Workings:- NRV =[Selling price - Selling expenses] Market =Higher of (Replacement cost, NRV-NP) Per…
Q: For February, sales revenue is $615,000; sales commissions are 6% of sales; the sales manager's…
A: Introduction:- A selling expense is a cost incurred to promote and market products to customers.…
D1.
Step by step
Solved in 3 steps
- DengarDuring 2020, Marian Company was sued by a competitor for P5,000,000 for infringement of a patent. Based on the advice of the legal counsel, the entity accrued the sum of P3,000,000 as a provision in the financial statements for the year ended December 31, 2020. Subsequently, on March 15, 2021, the Supreme Court decided in favor of the party alleging infringement of the patent and ordered the defendant to pay the aggrieved party a sum of P3,500,000. The financial statements were prepared by the entity's management on February 15, 2021 and approved by the Board of Directors on March 31, 2021. Questions: 1. When is the date of authorization for issue of the 2020 financial statements? 2. What amount should be recognized as accrued liability on December 31, 2020 to reflect the event after the reporting period?During 2018, Rosanna Company was sued by a competitor for P5,000,000 for infringement of a patent. Based on the advice of the legal counsel, the entity accrued the sum of P3,000.000 as a provision on December 31, 2018. Subsequently, on March 15, 2019, the Supreme Court decided in favor of the party alleging infringement of the patent and ordered the defendant to pay the aggrieved party a sum of P3,500,000. The financial statements were prepared by management on February 15, 2019 and approved by the board of directors on March 31, 2019. The financial statements were prepared by management on February 15, 2019 and approved by the board of directors on March 31, 2019. What amount should be adjusted on December 31, 2018 in relation to this event?
- During 2021, Angela Inc. was sued by a competitor for P5,000,000 for infringement of a patent. Based on the advice of the legal counsel, the entity accrued the sum of P3,000,000 as a provision on December 31, 2021. Subsequently on March 15, 2022, the Supreme Court decided in favor of the party alleging infringement of the patent and ordered the defendant to pay the aggrieved party the sum of P3,500,000. The financial statements were prepared by management on February 15, 2022 and approved by the board of directors on March 31, 2022. What amount should be adjusted on December 31, 2022 in relation to this event?A. 1,000,000B. 1,500,000C. 500,000D. 2,000,000On March 1, 2019, a suit was filed against Eloise Company for patent infringement. Eloise's legal counsel believed an unfavorable outcome is probable and estimated that the entity will have to pay between P850,000 and P900,000 in damages. However, Eloise's legal counsel is of the opinion that P600,000 is a better estimate than amount in the range. any other The situation was unchanged when December 31, 2019 financial statements were released on February 15,2020. What amount should be accrued as liability on December 31, 2019 in connection with this law suit?How much is the correct provision for unasserted claims to be accrued as of December 31, 2021?
- Tyeso Company entered into a lawsuit on December 25, 2020 and recognized on the same date a provision of P2,000,000. On February 28, 2021, when the financial statements for the year ended December 31, 2020 had not yet been authorized for issue, the case was settled and the court decided the final total damages to paid by the entity at P3,000,000. In addition, the Company has a loan payable of P2,000,000 due on June 30, 2021. On January 1, 2021, before the authorization of the issuance of financial statements, the bank agreed to refinance the loan, extending the maturity to June 30, 2023. Also, another loan amounting to P7,000,000 due on December 1, 2021 was obtained by the Company from BDO. TYESO Company has the discretion to refinance or roll over the loan for at least twelve months from December 31, 2021. 1. Compute for the current liability to be presented in the financial position a. P12 million b. P10 million c. P5 million d. P4 million Answer: 2. Compute for…Probst Company acquired a trademark several years ago at a cost of $60,000. Probst has never considered the trademark to be impaired. However, at the end of 2019, Probst has determined that the trademark is impaired because of a change in market conditions. It estimates that the trademark has a fair value of $40,000 at the end of 2019. Required: 1. Prepare Probst’s journal entry (if any) to record the impairment of its trademark at the end of 2019. 2. Next Level Assume Probst uses IFRS. If Probst estimates that the cost of selling the trademark is zero but the value-in-use is $45,000, prepare Probst’s journal entry to record the impairment of its trademark at the end of 2019. 3. Assume, instead, that Probst estimated that the trademark had a fair value of $70,000 at the end of 2019. How would Probst account for this if it were using (a) U.S. GAAP or (b) IFRS?What amount should be adjusted on December 31, 2021 in relation to this event?
- Suits for damages totaling P8,000,000 are pending against Freddy. The company lawyers advised that losses on such suits are not probable. However, company policy has mandated authorization that provision be made in the accounts for any possible loss up to P5,000,000. The suit was settled in 2021 and payment of P7,000,000 was made. Required: Prepare the entry to record the contingent liabilityTone Company is the defendant in a lawsuit filed by Witt in 2019 disputing the validity of copyright held by Tone. December 31, 2019, Tone determined that Witt would probably be successful for an estimated amount of P400, 000. Appropriately, a P400, 000 loss was accrued by a charge to income for the year ended December 31, 2019.On December 31, 2020, Tone and Witt agreed to a settlement providing for cash payment of P250, 000 by Tone to Witt, and transfer of Tone’s copyright to Witt. The carrying amount of the copyright on tone’s accounting records was P60, 000 on December 31, 2020. What would be the effect on the settlement on Tone’s income before tax in 2020?On January 15, 2021, an explosion occurred at the Aizel Company plant causing extensive property damage to area buildings. By March 1, 2022, no claims hand been asserted against the entity but management and counsel concluded that it is likely that claims will be asserted and that it is reasonably possible that the entity will be responsible for damages. Management believed that P1,250,000 would be a reasonable estimate of the liability. The entity's P5,000,000 comprehensive public liability policy has a P250.000 deductible clause. The financial statements for 2021 were issued on March 31, 2022. What amount of loss from lawsuit should be reported in the income statement for 2021?