Interest revenue need not be added to the gross income to compute for the total income.
Q: List Ken Lewin's assets in one column . His liabilities in another, and calculate his equity.
A: Equity = Assets - Liabilities We have to prepare Balance Sheet through in which we will post Assets ...
Q: Rifle Co. is a distributing company selling toy guns to retailers at 10/15, 5/20, n/30 and it provid...
A: Calculation of amount of accounts receivable on December 31, 2021 Accounts Receivable Debit Cre...
Q: On July 1, 2020, Lettuce Company, a calendar-year company, purchased a machine for a cash price of P...
A: 2020: Depreciation rate = 1/useful life = 1/10 = 10% Depreciation expense (for the entire year) = 2 ...
Q: We-Win Law Services received a payment of $56,000 as a retainer for a legal client for services to b...
A: Solution: Unearned revenue at year end will revenues unearned at the end of the year after adjusting...
Q: The following transactions occurred in CuddlePH Company during the month of May: Units Price Beginni...
A: Under FIFO Method value of ending inventory is calculated on the assumption that units of inventory ...
Q: On January 2, 2020, Popsters Corporation purchased 80% of SG Corporation's ordinary shares for P648,...
A: Business acquisition refers to when a corporation acquires majority or controlling stake in another ...
Q: Raw materials on hand: 85,000 Raw materials used (including indirect materials of 35,000) : 258,000...
A: Inventory:Raw materials utilized in the production of commodities, as well as the finished items tha...
Q: Warner Company's year-end unadjusted trial balance shows accounts recelvable of $115,000, allowance ...
A: To generate a journal entry, you input transaction data into your company's books. Your journal entr...
Q: BolaBola uses different kinds of machines in its manufacturing process. The following information re...
A: There are two type of expenses which are being incurred by the business. One type of expenses needs ...
Q: Hotdog Corp. had a checkbook balance on December 31, 2021 of P10,000,000 and held the following item...
A: The correct answer for the above mentioned question is given in the following steps for your referen...
Q: Perpetual Inventory Using LIFO Beginning inventory, purchases, and sales data for portable game play...
A: Total sales upto april 30 7920 inventory as on april 30 22 units @69. =1515 24 units @72 =1728...
Q: . Lucena Products provided the following information: ...
A: Inventory to be reported in statement of financial position = Raw materials inventory + Finished goo...
Q: Carla Vista Choice sells natural supplements to customers with an unconditional sales return if they...
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal....
Q: Using the data given below, compute for the total amount of items that meet the definition of financ...
A: The question is related to financial liability. A financial liability is (a) contractual obligation ...
Q: 40 years on a straight-line basis with no residual value. The entity adopted a policy of revaluation...
A:
Q: Corinth Company has the following accounts included in its December 31 trial balance: FA@FVTPL P1,00...
A: Working: Calculation of non-current investment Particulars Amount Financial asset at fair value...
Q: Melody Lane Music Company was started by John Ross early in 2021. Initial capital was acquired by i...
A: Assets = Liabilities + Stockholders equity Assets includes current assets and net property plant and...
Q: In 2020, Ted Baker had total assets of S510.31 million, of which $219.92 million were total noncurre...
A: Lets understand the basics. Current asset to total assets is a ratio in which current asset is compa...
Q: Conceptual Framework and Reporting Standard: Small and Medium Sized Enterprise 1. Certain topics ar...
A: The correct answer for the above mentioned question is given in the following steps for your referen...
Q: he first two columns in the following table give a firm's short-run roduction function when the only...
A: Average Product (AP)= Total Product (TP)/ Labour (L). Marginal Product = Change in production output...
Q: Exercise 7-3 Sales on store credit card LO C1 Z-Mart uses the perpetual Inventory system and has its...
A: Interest on sale on store credit card is income for the store hence credited to interest account
Q: Chung Corp. thought of constructing their own building for P40,000,000 which they plan to start and ...
A: Cost capitalization is an important aspect in ascertaining the cost of an asset. It provides a best ...
Q: cash Purchase 5,000 supplies on credit Owner invests 60,000 equipment Buys land 600,000 paying cash ...
A: Solution Concept Accounting equation is given as Asset = liabilities + equity This equation shal...
Q: The master budget at Western Company last period called for sales of 226,000 units at $10.00 each. T...
A: The question is based on the concept of Cost Accounting.
Q: Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Perform...
A: planned budget = planned labor hours* budgeted variable cost per hour+...
Q: QUESTION 5 Chain Reaction, Inc. allocates overhead using machine hours as the allocation activity. T...
A: Overhead rate = Estimated Overhead/ Estimated total level of activity ( machine hours ) = $ 200000/1...
Q: (a) Prepare the journal entries (if any) to record the sale on January 2, 2020. (Credit account titl...
A: Journal entries refers to the official book of a company which is used to record the day to day tran...
Q: You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door ope...
A: Cost variance is a disparity between the expense that was actually incurred and the expense that was...
Q: In 2020, Ted Baker had total assets of $510.31 million, of which $219.92 million were total noncurre...
A: Introduction: Total assets are the total value of everything a person has after all assets and oblig...
Q: In 2020, Ted Baker had total assets of $510.31 million, of which $219.92 million were total noncurre...
A: Formula: Percentage of Current Assets on Total Assets = ( Current Assets / Total Assets ) x 100
Q: On January 01, 2022, TGIF Company sold equipment costing P10,000,000 with accumulated depreciation o...
A: Note means an instrument acknowledging as debt due from one party to another party. It carry defined...
Q: If a corporation declares a 10% stock dividend on its common stock, the account to be debited on the...
A: A stock dividend is a dividend payment made to shareholders in the form of stock instead of cash. Al...
Q: 5. Understanding marginal and average tax rates Consider the economy of Cocoland, where citizens con...
A: Calculation of marginal tax rate and average tax rate are as follows:
Q: At January 1, the total of the purchases ledger accounts was $38,000, while at December 31 it was $4...
A: The credit purchase can be calculated by adding up cash payment to a supplier, closing the balance o...
Q: 21. For more than a decade since its incorporation, Feb-Ibig Company had been renting its office spa...
A: Solution The borrowing cost related to the qualifying asset shall be capitalized and included in the...
Q: when the idea first occurred to her it seemed like such a win win situation now she wasn’t so
A: Introduction Ethical dilemma is a situation when moral standards and principles are in conflict with...
Q: Northwood Company manufactures basketballs. The company has a ball that sells for $25. At present, t...
A: Contribution margin per unit = selling price per unit - variable cost per unit Contribution margin r...
Q: QUESTION 1 Lawn & Order, Inc. reports the following costs for the year: $120,000 Direct materials us...
A: period cost are those cost that cannot be capitalised in to prepaid expenses or inventory or fixed a...
Q: Goodwill of Php 300,000 to be recorded and allocated to the prior partners. The prior partners, Bal...
A: Admission of a partner into the partnership means adding one more person in the business into the pa...
Q: Pampanga's best provided the following information: ...
A: Solution: Inventory to be reported on statement of financial position = Raw materials inventory + Fi...
Q: Exercise 7-6 Percent of sales method; writé-öft At year-end (December 31), Chan Company estimates it...
A: The journal Entry for above transaction are as follows
Q: P company bought 60% of common stock of S company on January 1, 20x4. On January 1 20x5, there was a...
A: Calcualtion of NCI share in net income of S in year 20x6: Net income of S in year 20X6 ...
Q: RM Inc. had the following bank reconciliation on August 31, 2021: Balance per bank statement, 8/31 A...
A: The bank reconciliation statement is prepared to equate the balances of cash book and passbook with ...
Q: Discuss how financial information and financial statements are important decision making in food ser...
A: Contents of financial statements give entire number of various instruments and examinations strategi...
Q: The following information pertains to Entity A: Land held for long-term capital appreciations 2,500,...
A: Investment property is a property (land or building or a part of a building or both) held (by the ow...
Q: The balance of work in process inventory account as of December 31, of the current year of Purewood ...
A: Cost of inventory = P480,000 Selling price = P450,000 Completion cost = P10,000 Cost to sell = P5,00...
Q: 1. Purchased raw materials on account, $95,200. 2. Raw Materials of $40,000 were requisitioned to th...
A: 1.Raw Materials inventory a/c Dr. $95,200 Accounts Payable A/c. Cr. $95,200 2....
Q: Find the compound amount if P5,000 is invested at 10% compounded semi-annually for 2 years.
A: Compund Amount = PV * (1 + r/n)^ntWhere PV = Present Value = P5,000r = rate of interest = 10%n= num...
Q: TGIF Company owned a building on January 01, 2019, with historical cost of P52,000,000. The property...
A: Revaluation of Surplus: A revaluation excess is a kind of equity account in which any increases in t...
Q: On January 1, 2018, Apple Company sold delivery equipment costing P1,000,000 with accumulated deprec...
A: The current portion of a note receivable represents the amount that is due for receipt within the 12...
TRUE OR FALSE?
Interest revenue need not be added to the gross income to compute for the total income.
Step by step
Solved in 2 steps
- Deductions from gross income are subtracted from gross income to derivetaxable net income. TRUE OR FALSE?Should we include income derived from illegal sources in the computation of gross income? Why or why not?What is unearned revenue? Why is it considered a liability? Does unearned revenue impact both the Balance Sheet and the Income Statement? Explain.
- what is the net income under the worst case scenrio?Elements of gross income, except: A. There is return of capital B. It must be realized C. Not exempted by law or contract D. None of the aboveExclusion from gross income refers to income received or earned but is nottaxable as income because it is exempted by law or by treaty. TRUE OR FALSE?
- I am not understanding how the gross profit and net profit is calculated in this questionWhich of the following would not overstate current-period net income?a. Capitalizing an expenditure that should be expensed.b. Failing to record a liability as an expense.c. Failing to record a check paying an item in Vouchers Payable.d. All of the above would overstate net income.Exclusion from gross income refers to income received or earned but is nottaxable as income because it is exempted by law or by treaty a.true b.false
- state the differences between unearned revenue and accounts payable? both accounts are liabilities therefore what is the normal balance of liability and does it matter?Receivables determined to be absolutely worthless when written off may be claimed as deduction from gross income underTrue or False Unearned revenue is revenue that is earned but not yet collected
