What amount of interest income that Patbingsu should record for the year ended December 31, 2019?
Q: A journal entry has only two lines: a) Increase in one Expense account, b) Increase in another Expen...
A: The journal entry is made such as it affects two or more accounts and if one account is debited then...
Q: Chuck Wagon Grills, Incorporated, makes a single product-a handmade specialty barbecue grill that it...
A: Fixed manufacturing overhead cost per unit = Total Fixed manufacturing overhead cost / Units produc...
Q: Subsidiary Company was merged with Parent Corporation on December 31, 2021. In the business combinat...
A: Retained earning after combination i.e. merger of the companies is the total of the retained earning...
Q: Which of the following would best explain an increase in receivables turnover? The company adopt...
A: Receivables turnover is a financial ratio that helps in identifying the ability of the company in co...
Q: Which of the following pairs of financial statement analysis tool will be given more emphasis by a f...
A: Trade credit and sale on account to new customers relates to short term Liquidity. If short term Li...
Q: Which of the following statement is correct?
A: Promissory note is the note which is received by the giver of the asset or received by the lender of...
Q: Prepare a flexible budget performance report that shows the company's revenue and spending varlances...
A:
Q: Parent and Child corporations have filed on a consolidated basis since the mid-1990s. The group repo...
A: Solution:- Calculation of the Parent group's net operating loss for the year that is available for c...
Q: Real Şdn Bhd did not keep his books of accounts under double entry system. Depreciation on Non-curre...
A: The question is related to Ledger of Purchase, Bank and Depreciation Account for the year ended Dece...
Q: A company just starting business made the following four inventory purchases in June: Number of unit...
A: Average cost per unit = Total cost Total number of units purchased ...
Q: ad and P900,000 for fixed overhead. a. What is the predetermined overhead rate base on units of prod...
A: * As per Bartleby policy, in case question have multiple subparts then answer first three only. a)...
Q: arcia Com
A: These are the accounting transactions that are having a monetary impact on the financial statement o...
Q: Charles Company owns a building that originally cost P400,000 and has a current book value of P250,0...
A: Introduction:- The following basic information given as follows under:- Charles Company owns a buil...
Q: Required information P9-2 (Algo) Recording and Reporting Current Liabilities with Discussion of Cash...
A: Adjustment statement Date Particular Amount($) Jan-08 Accounts Payable 14850 Jan-07 Paid Jan 0...
Q: At the end of 2020, Crown Point Corp. has accounts receivable of $479,200 and an allowance for doubt...
A: Date Account Titles and Explanation Debit Credit Mar'4 Accounts Receivable $ 11,600 All...
Q: f the following is false? a. Baumol model helps firm to find out their desirable level of cash bala...
A: Account payable are the amount of money to be given to the suppliers and creditors who provides mone...
Q: Upperchurch Company reports the following components of stockholders' equity on January 1. Common st...
A: Date Transaction Impact on Equity Amount Jan'1 Total Stockholders' Equity - January'1 $ 98...
Q: For each of the descriptions 1-6, match the correct word or phrase from A-H. A. Inspections of tangi...
A: Solution:- Given, For each of the descriptions 1-6 match the correct word or phrase from A-H
Q: On December 31,2019, ABC Company leased equipment to DEF Company for a 4 year period ending December...
A: Lease: Lease refers to an agreement where the Lessor permit to use of the asset to Lessee in return...
Q: Bulldogs Inc. expected to sell in October 2021 1,000 units of Dell laptops with a purchase cost per ...
A: Lets understand the basics. Sales volume variance is a variance in which actual quantity sold compar...
Q: Information on Vergara Company’s direct material costs for May 2018 is as follows: Actual quantit...
A: Answer) Calculation of Material Price Variance Material Price Variance = (Standard price per pound o...
Q: Bulldogs Inc. maintains a cash buffer for unexpected cash outlays for the year amountir 3,000. Bank ...
A: Company maintain cash with them so that there is sufficient liquidity and if any opportunity arise m...
Q: Gordon Helps is planning a function. There are two possible venues. • TCG club which have fixed rent...
A: Break Even Point is very important aspect.The break-even point is the point at which total cost and ...
Q: what is the annual interest rate cost (Use 360-day year)?
A: If the firm foregoes the cash discount offered then they would be paying higher for the goods. This ...
Q: t the end of November 2016, Caribbean Productions Ltd had 700 units of product BMR400 in store. For ...
A: The total cost of production of a good comprises of the total fixed cost of production and the total...
Q: The audit of historical financial statements should be conducted by the CPA professionals in accorda...
A: The correct answer is given in the following steps for your reference.
Q: 1. Prepare the journal entries to record the February transactions. 2. Set up the following ledger a...
A: Journalizing- Journalizing is the method used by businesses to keep track of their transactions in a...
Q: Items 19 to 20 are based on the following information: You have been assigned to audit the financial...
A: Given accounts receivable balance before adjustment = P9,190,000 Allowance for doubtful debts is 5% ...
Q: Clay Company has three lines of business, each of which was determined to be reportable segment. Sal...
A: Operating profit is the amount of profit earned from its main operations or business. It is calculat...
Q: Widgets & Gadgets in a merchandiser that sells gadgets and widgets. They had the following transacti...
A: Journal entry records the financial transaction which is one of the key step of accounting. Under F...
Q: business analyst for Doorknob Design Company (DDC), which manufactures expensive brass doorknobs. DD...
A: Solution Working - Standard quantity = 35000 / 1 unit *0.3 lbs =10500 lbs. Actual rate = (808500 / 3...
Q: On December 31, 2019, Ana Inc. sold merchandise for P750,000 to Ysa Inc. The terms of the sales were...
A: Lets understand the basics. When any error found out after the closing books of account of years the...
Q: he following information relates to a given department of Viernes Company for its fourth quarter of ...
A: It is given that Actual total overhead - P178,500 Budget formula -P110,000 + P50 per hour Total fact...
Q: Gosens Company began operations on December 1, 2020. Presented below is selected information related...
A: Solution.. Service Revenue = $135,000 Rent expenses = $22,000 Utilities expenses = $23,000 Main...
Q: following is not a requisite of ‘object’?
A: This is a multiple choice question in which we have been given some options and we have to choose th...
Q: A week before the expiration of the period, Aki told Jannie that she is no longer willing to sell th...
A: The answer for the multiple choice question and relevant explanation are presented hereunder : Aki o...
Q: On January 4, 2022, Party Corporation purchase 80% of Summer Company’s ordinary share for P810,000 w...
A: summer company net income is 181250 less dividend paid 30000 so noncontrolling interest in the net i...
Q: Upperchurch Company reports the following components of stockholders' equity on January 1. Common st...
A: UPPERCHURCH CORPORATION Stockholders' Equity Section of the Balance Sheet December'31 Common S...
Q: Mike Flannery holds the following portfolio: Stock Investment Beta A P150,000 1.40 B 50...
A: Answer) Calculation of Portfolio Beta Stock Investment Weightage Beta Weighted Beta...
Q: The amount of bonus to PP in 2015 amounted to: a. P18,000 C. P13,304 b. P16,456 d. P20,700
A: Suppose B is the amount of Bonus, Therefore, B = (Profit before Salary and Interest but after Bonus ...
Q: A firm with seasonal sales would probably select which of the following types of loans from a bank t...
A: Seasonal sales where the products of the company would be sold only in particular season of the year...
Q: On June 1 of the current year, Pamela Schatz established a business to manage rental property. She c...
A: The accounting equation states that assets equal to sum of liabilities and equity. The business tran...
Q: Carla Vista Hardware Store completed the following merchandising transactions in the month of May. A...
A: Journal Entries - Journal Entries are the recording of transactions of the organization. It is recor...
Q: NightWoundsTime Brewing Co. distributes its products in an aluminum keg. Customers are charged a dep...
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal....
Q: Which of the following firms do not use Job-order costing? Law Firms Consulting Firms Refinery Auto...
A: Lets understand the basics. Job order costing used when unique product or services needs to each cus...
Q: At the end of November 2016, Caribbean Productions Ltd had 700 units of product BMR400 in store. For...
A: An organization or a manufacturing unit can have different cost technique which they can use to asce...
Q: AaaArnina established a service business to be known as Arnina Photography on July 1, 2021. During t...
A: Journal entry is the process of recording business transactions for the first time in the books of a...
Q: The economic order quantity of Bulldogs Inc. is 1,000 unit. They sold their sole product for a sell...
A: Economic order quantity: Economic order quantity refers to the optimum level of quantity that minimi...
Q: In a balanced balance sheet, if assets are equal to $95, 000 and liabilities are $51,000, then owner...
A: An accounting equation refers to a mathematical representation of the transaction. It indicates that...
Q: Widgets & Gadgets in a merchandiser that sells gadgets and widgets. They had the following transacti...
A: Journal Entry in books of Widgets and Gadgets for June 2020
Patbingsu Machineries, dealer of machinery and equipment, leased equipment to Africa Products on July 1, 2019. The lease is appropriately accounted for as a sale by Patbingsu and as a purchase by Africa. The lease is for 10-year period (the useful life of the asset) expiring on July 1, 2029. The first ten equal annual payments of P250,000 was made on July 1, 2019. Patbingsu purchased the equipment for P1,337,500 on January 1, 2019 and established a list selling price of P1,687,500 on the equipment. Assume that the present value at July 1, 2019 of the payments over the lease term discounted at 12% was P1,582,500. What amount of interest income that Patbingsu should record for the year ended December 31, 2019?
Step by step
Solved in 2 steps
- ABC Machineries, dealer of machinery and equipment, leased equipment to XYZ on July 01, 2021. The lease is appropriately accounted for as a sale by ABC Machineries and a purchase by XYZ. The lease is for a 10-year period (the useful life) of the asset expiring on June 30, 2031. The first of ten equal annual payments of P250,000 was made on July 01, 2021. ABC Machineries purchased the equipment for P1,337,500 on January 01, 2021 and established a list selling price of P1,687,500 on the equipment. Assume that the present value at July 01, 2021 of rent payments over the lease term discounted at 12% was P1,582,500. What is the amount of net investment in the lease and the total income that ABC Machineries should recognize for the year ended December 31, 2021? A. P1,332,500 and P324,950 B. P1,412,450 and P324,950 C. P1,412,450 and P339,950 D. P1,332,500 and P339,950ABC Machineries, dealer of machinery and equipment, leased equipment to XYZ on July 01, 2021. The lease is appropriately accounted for as a sale by ABC Machineries and a purchase by XYZ. The lease is for a 10-year period (the useful life) of the asset expiring on June 30, 2031. The first of ten equal annual payments of P250,000 was made on July 01, 2021. ABC Machineries purchased the equipment for P1,337,500 on January 01, 2021 and established a list selling price of P1,687,500 on the equipment. Assume that the present value at July 01, 2021 of rent payments over the lease term discounted at 12% was P1,582,500. What is the amount of net investment in the lease and the total income that ABC Machineries should recognize for the year ended December 31, 2021? * 6Torrey Co. manufactures equipment that is sold or leased. On December 31, 2018, Torrey leased equipment to Dalton for a five-year period ending December 31, 2023, at which date ownership of the leased asset will be transferred to Dalton. Equal payments under the lease are P1,100,000 (including P100,000 executorycosts) and are due on December 31 of each year. The first payment was made on December 31, 2018. Collectibility of the remaining lease payments is probable. The lease receivable before the first payment is P3,850,000, and cost is P3,000,000. For the year ended December 31, 2018, what amount of income should Torrey realize from the lease transaction?
- Pharoah Company, a dealer in machinery and equipment, leased equipment to Sands, Inc., on July 1, 2021. The lease is appropriately accounted for as a sales-type lease by Pharoah and as a finance lease by Sands. The lease is for a 10-year period (the useful life of the asset) expiring June 30, 2031. The first of 10 equal annual payments of $748000 was made on July 1, 2021. Pharoah had purchased the equipment for $4850000 on January 1, 2021, and established a list selling price of $6800000 on the equipment. Assume that the present value at July 1, 2021, of the rent payments over the lease term discounted at 8% (the appropriate interest rate) was $5600000.What is the amount of profit on the sale and the amount of interest revenue that Pharoah should record for the year ended December 31, 2021? $750000 and $194080 $1200000 and $448000 $750000 and $224000 $0 and $164080Hitech Company, a dealer in machinery and equipment, leased equipment to Quality Company on July 1, 2022. The lease is for a ten-year period equal to the useful life of the asset expiring June 30, 2032. The first of ten equal annual payments of P250,000 was made on July 1, 2022. Hitech had purchased the equipment for P1,480,000 on January 1, 2022 and established a list selling price of P1,685,000. The present value on July 1, 2022 of the rent payments over the lease term discounted at 12% was P1,580,000. What amount should Hitech Company record as gain on sale in 2022? ANSWER: 100,000 PLEASE SHOW SOLUTIONSheridan Co. manufactures equipment that is sold or leased. On December 31, 2021, Sheridan leased equipment to Dalton for a 5-year period ending December 31, 2026, at which date ownership of the leased asset will be transferred to Dalton. Equal payments under the lease are $1065000 (including $93000 executory costs) and are due on December 31 of each year. The first payment was made on December 31, 2021. Collectibility of the remaining lease payments is probable. The lease receivable before the first payment is $3500000, and cost is $2650000. For the year ended December 31, 2021, what amount of income should Sheridan realize from the lease transaction? 850000 1065000 1825000 1360000
- A Corp. leased equipment to a lessee on January 1, 2021. The lease is for an eight-year period expiring on December 31, 2028. The first of eight equal annual payments of P900,000 was made on January 1, 2021 and subsequent payments will be made every January 1 thereafter. A Corp. had purchased the equipment on December 29, 2020 for P4,800,000. A Corp. paid P150,000 in connection with negotiating and arranging the lease. The lease is appropriately accounted for as a dealer’s lease by A Corp.. The present value on January 1, 2021 of all rent payments over the lease term discounted at a 10% interest rate was P5,280,000.How much is the Cost of Sales to be recognized in 2021? How much is the Interest Revenue in 2021? How much is the Net Investment in the Lease at December 31, 2022?Fox Company, a dealer in machinery and equipment, leased equipment to Tiger Inc. on July 1, 2019. The lease is appropriately accounted for as a finance lease. The lease is for a 10-year period (the useful life of the asset) expiring June 30, 2029. The first of 10 equal annual payments of $500,000 was made on July 1, 2019. Fox had purchased the equipment for $2,675,000 on January 1, 2019, and established a list selling price of $3,375,000 on the equipment. Assume that the present value at July 1, 2019, of the rent payments over the lease term, discounted at 12% (the appropriate interest rate), was $3,165,000. Assuming that Tiger uses straight-line amortization, what is the amount of amortization and interest expense that Tiger should record for the year ended December 31, 2019?Derozan Corp. manufactured equipment at a cost of $244273 and leased it to B Corp. on January 1, 2019 for an eight-year period expiring December 31, 2026. Eight years is considered a major part of the asset’s economic life. Equal payments under the lease are $62200 and are due on January 1 and July 1 of each year. The first payment was made on January 1, 2019. The implicit rate used by Derozan is 8%. Additional information: Present value of an annuity due of $1 for 8 periods at 8% 6.21 Present value of an annuity due of $1 for 16 periods at 4% 12.12 What amount of selling profit or loss should Derozan report for the year ended December 31, 2019?
- Happy Corporation leased equipment to Great Company on January 1, 2021. The lease is for an eight-year period expiring on December 31, 2028. The first of eight equal annual payments of P900,000 was made on January 1, 2021, and subsequent payments will be made every January 1 thereafter. Happy Corporation had purchased the equipment on December 29, 2020, for P5,280,000, which is equal to its fair value. Happy paid P150,000 in connection with negotiating and arranging the lease. The lease is appropriately accounted for as a direct finance lease by Happy. What is Happy Corporation’s net investment in the lease on January 1, 2021? A. P4,380,000 B. P5,280,000 C. P5,430,000 D. P4,530,000Fox Company, a dealer in machinery and equipment, leased equipment to Tiger Inc. on July 1, 2019. The lease is appropriately accounted for as a finance lease. The lease is for a 10-year period (the useful life of the asset) expiring June 30, 2029. The first of 10 equal annual payments of $500,000 was made on July 1, 2019. Fox had purchased the equipment for $2,675,000 on January 1, 2019, and established a list selling price of $3,375,000 on the equipment. Assume that the present value at July 1, 2019, of the rent payments over the lease term, discounted at 12% (the appropriate interest rate), was $3,165,000. What is the amount of profit on the sale and the amount of interest income that Fox should record for the year ended December 31, 2019?a. $0 and $159,900b. $490,000 and $159,900c. $490,000 and $189,900d. $700,000 and $189,900Happy Corporation leased equipment to Great Company on January 1, 2021. The lease is for an eight-year period expiring on December 31, 2028. The first of eight equal annual payments of P900,000 was made on January 1, 2021 and subsequent payments will be made every January 1 thereafter. Happy Corporation had purchased the equipment on December 29, 2020 for P4,800,000. Happy paid P150,000 in connection with negotiating and arranging the lease. The lease is appropriately accounted for as a dealer’s lease by Happy. The present value on January 1, 2021 of all rent payments over the lease term discounted at a 10% interest rate was P5,280,000. What is Happy Corporation’s net investment in the lease on December 31, 2021? A. P4,818,000 B. P4,380,000 C. P4,309,000 D. P3,918,000