which P Co. would obtain a “bargain." O $710,000
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- Carla Vista Construction Company uses the percentage-of-completion method of accounting. In 2025, Carla Vista began work under contract #E2-D2, which provided for a contract price of $2,219,000. Other details follow: Costs incurred during the year Estimated costs to complete, as of December 31 Billings during the year Collections during the year (a) Your answer is correct. Revenue recognized in 2025 Revenue recognized in 2026 $ 2025 $620,490 970,510 $ 428,000 350,000 What portion of the total contract price would be recognized as revenue in 2025? In 2026? (Do not round intermediate calculations.) 865,410 2026 1,353,590 $1,429,000 -0- 1,699,000 1,471,000representing settlement of both the principal and interest on PROBLEM 6: MULTIPLE CHOICE PRODihy A obtained a 12%, P100,000, one-year loan on October 1, 20x1, On October 1, 20x2, Entity A paid the lender P112,000, the loan. The P12,000 total interest should be recognized as interest expense c. partly in 20x1 and partly in 20x2. d. Not recognized as expense a. in 20x1. b. in 20x2. 2. The instance described in #1 above is an application of which of the following accounting concepts? c. Matching d. a and b a. Accrual b. Time period10.
- t15If in the contract of sale, it is indicated that the car which normally costs P1Million pesos was bought for P20,000.00, the contract is rendered? A. Valid B. Invalid C. Unenforceable D. ObligatoryA company borrows as follows: amortiza oustanding t interest instalment tion amount 0 0 301.386 0 3.000.000 1 90.000 301.386 211.386 2.788.614 2 83.658 301.386 217.728 2.570.886 3 77.127 301.386 224.260 2.346.626 4 70.399 301.386 230.987 2.115.639 5 63.469 301.386 237.917 1.877.722 6 56.332 301.386 245.055 1.632.667 7 48.980 301.386 252.406 1.380.261 8 41.408 301.386 259.978 1.120.282 9 33.608 301.386 267.778 852.505 10 25.575 301.386 275.811 576.693 11 17.301 301.386 284.085 292.608 12 8.778 301.386 292.608 Loan was requested on 31 October 2019 and instalments are monthly. It is requested: a. Make accounting entries for year finished 2019. b. If company were to make a full prepayment on 15 January 2020, how much would it have to pay? Make respective accounting entry(s). Note: Remember that, to transform monthly interest rate to fortnightly interest rate, following formula must be applied: (1 + i_monthly)^ = (1+i_fortnightly) c. If at the time of applying for credit, agreed term for…
- Garey O coniderng an invement in epring ement cong S51400 The ement w te depcated on a straght-ne bais era eyeer ite anda peced to gererte net cah intoen of S130.000 e ft yea, 1150.000 e second yeat and S160.000 every ya terester un he ye What is he payback pered ornveste The resida va isere Round your aner to teo decimal places OA 27 years OR 3 yea De AMyes OD 2 yearsA business combination involves a contingent consideration. It is considered 80% probable that a payment of $700,000 will become payable three years after the acquisition date. Using a 5% discount rate, what liability should be recorded for the contingent consideration on the acquisition date? Select one: a. $604,686 b. $700,000 c. $483,749 d. $560,000Please answert it in good accounting form. Thankyou Problem 5SHAWARMA Inc. sells franchises to independent operators. The contractwith the franchise includes the following provisions: 1. The franchise is charged an initial franchise fee of P120,000. Of this amount, P20,000 is payable when the agreement is signed and a P20,000, zero-interest bearing note, payable at the end of 5 subsequent years.2. All of the initial franchise fee collected by the company is to be refunded and the remaining obligation cancelled if, for any reason, the franchise becomes unprofitable.3. In return, for the initial franchise fee, the franchisor agrees to (a) assist the franchisee in selecting the location for the business, (b) negotiate the lease of the land, (c) obtain financing and assist with building design, (d) supervise construction, establish accounting and tax records, and (f) provide expert advice over a 5-year period relating to such matters as employee and management training, quality, control…
- Question 1 For a multifamily acquisition, the seller credit for property tax is $54,356.20. The property tax bill for 2023 is $124,000. What date is the closing set for in 2023? O 6/8/2023 O 6/7/2023 O 6/10/2023 O 6/9/2023 O6/11/2023Show the solution in good accounting form. Thank you! 1. How much should be shown in FIVE's 2021 income statement as gross rental income? a. ₱ 60,000 b. ₱ - 0 - c. ₱ 6,000 d. ₱ 30,0005.) Chick 2 Go, Inc. charges an initial franchise fee of P115,000, with P25,000 paid when the agreement was signed and the balance in five annual payments. The prevailing interest rate upon signing the contract was 10%. The Franchisee has the option to purchase P15,000 of equipment for P12,000. Chick 2 Go has substantially provided all initial services required and collectability of the payment is reasonably assured. Required:a.) The amount of revenue recognized from the franchise fee was:b.) How much is the balance of receivable after 2 installment payment has been made?