E3-3 (LO 1), AP Primo Industries collected $105,000 from customers in 2022. Of the amount collected, $25,000 was for services performed in 2021. In addition, Primo performed services worth $40,000 in 2022, which will not be collected until 2023. Primo Industries also paid $72,000 for expenses in 2022. Of the amount paid, $30,000 was for expenses incurred on account in 2021. In addition, Primo incurred $42,000 of expenses in 2022, which will not be paid until 2023. Instructions a. Compute 2022 cash-basis net income. b. Compute 2022 accrual-basis net income.
Q: Activity-Based Product Costing Davis Company produces two hair dryers: regular and deluxe. The…
A: ACTIVITY BASED COSTING ABC is a system that Focuses on activities as the Fundamental cost objects…
Q: The long-term liability disclosure note to the Year 2 annual report of Penguin Pilots Inc. included…
A: Businesses can issue debentures as marketable securities to get long-term funding without putting up…
Q: A certain property is being sold and the new owner received two bids. The first bidder offered to…
A: Present value (PV) is the current value of a future sum of money of cash flows given a specified…
Q: X Company, a division of a major oil company, provides various services to the operators of oil…
A: Return on investment is one of the financial ratio which is used to analyse how much operating…
Q: Please interpret the numbers and compare the number, no required to explain the theory. Also answer…
A: Current Ratio = Current Assets/ Current Liabilities Quick Ratio = (Current Assets - Inventory -…
Q: Condensed Statements of Financial Position of Love Corp. and You Corp. as of December 31, 2021 are…
A: Combining the assets, liabilities, and other financial components of two or more entities into one…
Q: Assume that markup is based on cost. Calculate the cost and sellin Note: Round your answers to the…
A: Introduction:- A mark-up is a percentage is added to the cost of a product. It is the difference…
Q: Required information [The following information applies to the questions displayed below.] Trevino…
A: Some information is Missing but the information for solving this two questions is visible and…
Q: Calculate the breakeven point and contribution margin. Breakeven point units Fixed cost $ 77,100…
A: Break Even Point - Break Even Point is the point where company has recovered its fixed cost and can…
Q: Which of the following is not assumed to be constant in CVP analysis? Selling Price None of the…
A: Cost-Volume-Profit (CVP) analysis is a cost accounting method to find out how changes in variable…
Q: A resident citizen has the following data in 2022: Gross receipts from services, P800,000 Cost of…
A: Optional Standard Deductions A deduction equivalent to no more than 40% of their gross sales or…
Q: 1. Compute the break-even point in dollar sales for next year assuming the machine is installed.…
A: Introduction:- Break-even point point means, where no profit or loss At Break-even point point,…
Q: Prepare the necessary adjusting entries for the following independent situations. The accounting…
A: Adjusting entries Date Accounts Title debit credit Dec 31,20x2 Interest receivable To…
Q: P Limited obtained control with the acquisition of an 80% equity interest in the share capital of S…
A: Investment in subsidiary company by holding company includes any consideration given by holding…
Q: The following are the three suppliers of ABC corp with different credit terms: Purchase from A…
A: Credit terms of 2/10 net 30 means that the buyer will get a discount of 2% if he makes the payment…
Q: The Vermillion Inc. wants to raise its working capital. The Company decides to issue 6,000 shares of…
A: A warrant is a type of financial instrument that businesses would offer in return for a cost or…
Q: 4. The cost of a home is financed with a $120,000 30-year fixed-rate mortgage at 4.5%. a. Find the…
A: Monthly Payments = L[c(1 + c)^n]/[(1 + c)^n - 1], where L stands for "loan," C stands for "per…
Q: Kaede, Itona, and Ritsu are partners with capital balances of P80,000, P200,000, and P120,000,…
A: Partnership is a form of business in which two or more people come together to do business with the…
Q: A sheaf of papers in her hand, your friend and colleague, Chloe, steps into your office and asked…
A: Formula:
Q: If the company wants to achieve a residual income of P 40,000 using an imputed interest charge of…
A: Operating income is the income generated from the operations in the business. This is calculated by…
Q: Let: BES= break-even sales, R = revenue per unit, F = fixed costs, V = variable cost per unit, CMR =…
A: Break-even sales shows the amount of sales to generate 0 net income. At this point, total revenue is…
Q: Cook Security Systems has a $37,500 line of credit, which charges an annual percentage rate of prime…
A: Calculation of new balance are as follows
Q: What is the correct journal entry for the following transaction? A firm sells a car for $40 cash.…
A: Cash is an current asset of the company. PP&E is non- current asset of the company. Net property…
Q: Assume that the company expects to have sales increase by 20%, what will be the resulting change in…
A: This problem relates to leverage analysis. Degree of Operating Leverage measures the percentage…
Q: X Corp. has three business segments with the following financial status: Store 1 Store 2 Revenue…
A: While doing the store closure analysis, we need to assess the relevant costing and should assess the…
Q: Data are as follows: In year 2020, sales are 150,000 units with Selling price per unit of 10 and VC…
A: EBIT: EBIT stands for Earnings before interest and tax. EBIT is calculated after adding the interest…
Q: merchandise on account to Equinox Co., $18,900, terms F- ds sold was $13,300. merchandise for…
A: Journal entries refers to the the concept of stating the day to day activities of a business in the…
Q: A1 Supply Company compiled the following financial information as of December 31, 2025: Service…
A: Income statement: Income statement is the financial statement that shows the financial performance…
Q: P486,000
A: P486,000 The taxpayer's taxable net income would be P486,000. This is calculated by taking the gross…
Q: Sweeten Company had no jobs in progress at the beginning of the year and no beginning inventories.…
A: Plantwide overhead rate based on machine hours= Estimated total overhead cost ÷ Estimated total…
Q: What are the ways to escape financial fraud? And why is it important to prevent it?
A: Any type of misrepresentation, forgery and mislead which harms the financial health of an…
Q: A resident international carrier has the following data for the current year: Gross income of…
A: Given Information: Gross Income from the Philippines: P10,000,000 Expenses from the Philippines:…
Q: Alfred owned a term life insurance policy at the time he was diagnosed with a terminal illness.…
A: Answer:- Gross income meaning:- The sum of an individual's earnings before taxes or any other kind…
Q: A debt of P100,000 with interest at the rate of 16% compounded annually is to be amortized by 3…
A:
Q: Marcus Company requires three units of P11 for every unit of A5 that it produces. Currently, P11 is…
A: Incremental analysis is one of the useful analysis being done in cost accounting when decision needs…
Q: Do you have the work sheet and financial statement for the attached homework. Critical thinking…
A: Worksheet is 10 column sheet which is being prepared in accounting to show unadjusted ledger…
Q: On September 18, 2022, Dozer Dozz, optometrist, established the Dozz Eye Clinic. Transactions…
A: In every organization, there are a lot of financial transactions every day. It is impossible for an…
Q: The sales director of ABC Corp suggest the following credit terms. He estimated the following:…
A: Credit terms are those terms which are used for providing credit to customers. These credit terms…
Q: American Food Services, Inc. leased a packaging machine from Barton and Barton Corporation. Barton…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: A used car was purchased for $20,000 and sold 9 years later for $2,500. Its annual maintenance is…
A: The question is based on the concept Annuity in Financial Management. Annuity refers to the series…
Q: You were project manager of 5 identical projects and needs to designate workers for 5 identical…
A: Skilled Workers Any employee who possesses specialized knowledge, training, or skills that they may…
Q: Iglesias, Inc. completed Job 12 on November 30. The details of Job 12 are given below: Direct labor…
A: Job costing is a costing method to track the costs for each Job. Job cost consists of three costs…
Q: Problem 3 East Company submits the following data for May, 2022 Direct labor cost Cost of goods sold…
A: Hi student Since there are multiple questions, we will answer only first question. If you want…
Q: E3.4 (LO 1, 2, 3) Luong Corporation encounters the following situations: 1. Luong collects $1,300…
A: In business, adjusting entries are recorded for correct reporting of all incomes, expenses, assets…
Q: Revenue Feb in January. 1.67% -alue in March $500
A: Conversion rate refers to the concept of evaluating the percentile batch of users who have…
Q: Activity Rates and Product Costs using Activity-Based Costing Lonsdale Inc. manufactures entry and…
A: Activity based costing is one of the form of costing, under which all indirect costs are assigned on…
Q: Find the value of 1,000 bonds with annual interest rate of 5% making semiannual interest payment for…
A: BOND Bond Is a Security which is Issued by the Company and Government for Funding their Business and…
Q: The balances of select accounts of McMurray, Inc. as of December 31, 2024 are given below:…
A: Non-current liabilities (long-term liabilities) are liabilities that are due after a year or more.…
Q: The following data are available for X Company: • Ave Selling price of 16 per unit…
A: The contribution margin is calculated as difference between sales and variable costs. The operating…
Q: On January 1, 2021, a company obtained a franchise from a famous fast-food chain to sell for 20…
A: A franchise agreement is a contract that binds both the franchisor and the franchisee legally. The…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- Bramble Corp. has the following account balances at December 31, 2021: Notes payable ($47,000 due after 12/31/22) $78,000 Unearned service revenue 55,000 Mortgage Payable ($70,000 due in 2022) 195,000 Salaries payable 25,000 Accounts payable 49,000 In addition, Bramble is involved in a lawsuit. Legal counsel feels it is probable Bramble will pay damages of $20,000 in 2022. Bramble records provisions related to litigations in the account Litigation Liability. Prepare the current liabilities section of Bramble's December 31, 2021, balance sheet. Bramble Corp. (Partial) Balance Sheet(a) Some people argue that APS is just a way for the government to pocket the revenue as soon as possible. Explain what is APS and what is its importance. (b) Company C has a year-end of 31 Dec. For the year ended 31 Dec 2020, it had a net profit of USD 8,000,000. While the chargeable income for USD 5,000,000.00 During the year 2020, the company file the following APS Details 1st quarter 2nd quarter 3rd quarter Amount (USD) 250,000.00 250,000.00 250,000.00 750,000.00 The net profit for the year 31 Dec 2019 is USD 20,000,000.00 and the chargeable income is USD 6,666,666.67 REQUIRED Calculate the total amount payable under the corporate tax for the year ended 31 Dec 2019.During 2020, Mami Corp. received P8,000,000 from tenants. The balance sheet contained the following data: 2019 2020 Rentals receivable P 960,000 P1,240,000 Unearned rentals 3,200,000 2,400,000 What amount of rental revenue should be reported for 2020?
- 10. SSD, Inc. is preparing its financial statements for the year ended December 31, 2023. Accounts payable amounted to P560,000 before any necessary year-end adjustment related to the following: On December 31, 2023, SSD has a P80,000 debit balance in its accounts payable to Ross, a supplier, resulting from a P100,000 payment for goods to be manufactured to SSD’s specifications. SSD has an existing obligation to Ross which amounted to P20,000. Such an amount represents the value of goods just acquired by SSD from Ross. Previous experiences of SSD reveal that it pays all its trade obligations with an available discount on the last day of the discount period. A check with control number 189 in the amount of P100,000 was written to a vendor and recorded on December 25, 2023. The checks were mailed following the day it was written. However, when the bank statement arrived on January 2, 2024, it was found out by SSD that such a check has not yet been presented for encashment. SSD performs…On Jan 1,2020, Kim Co. supplies amounted to P2,500. During the year, thecompany purchased P1,200 worth of supplies. Because of some defects, theyreturned P300 to the suppliers. At year end, the supplies amounted to P1,800.What is the amount of supplies expense?For the next two items: A company sold a factory on January 1, 2016 for P7,000,000. The entity received a cash down payment of P1,000,000 and a 4-year, 12%note for the balance. The note is payable in equal annual payments of principal and interest of P1,975,400 payable on December 31 of each year until 2019. 20. What is the interest income for 2017? a. 840,000 b. 720,000 c. 569,352 d. 975,400 21. What is the carrying amount of the note receivable on December 31, 2017? a. 4,500,000 b. 4,744,600 c. 3,338,552 d. 4,025,600 E D1 c00 000
- 57. On March 15, 2019, Milo company paid property taxes of P180,000 on the factory building for calendar year 2019. On April 1, 2019 the entity made P300,000 in unanticipated ordinary repairs to plant equipment. What total amounts of these expenses should be included in the quarterly income statement ending June 30,2019? a. 75,000 b. 145,000 c. 195,000 d. 345,000The following transaction relate to Tool Company’s contingencies. The financial statements are dated December 31, 2023 and were issued on March 31, 2024. a. Tool’s products carry one –year warranty against manufacturer defects. Based on past experience, warranty costs are expected to be 4% of sales. Sales for 2023 were P2,000,000 and actual warranty cost incurred was P30,000. b. In December 2023, an NGO filed suit against Tool seeking penalties for violation of clean air laws. Tool’s counsel advised that is probable that the entity will lose the case and that the amount of penalty is P2,000,000. Appropriately, the entity recorded the liability. On January 15, 2024, Tools reached a settlement to pay P1,500,000 in penalty. c. Tools is the plaintiff in a P4,000,000 suit filed against a supplier. The attorney advised that it is probable that the entity will win the case and that the award is P2,500,000. On March 15, 2024, the court ruled in favor of Tools and received P2,000,000.…43. Chicken Wings Corporation paid P120,000 for annual property taxes on January 15, 2021, and P20,000 for building repair costs on March 10, 2021. Total repair expenses for the year were estimated to be P200,000. What total amount of expense for these items was reported in Chicken Wings’s first quarter 2021 interim income statement?
- Berlin Corp. reported the following data for 2021: Total net sales made to customers were P2,000,000 in cash. Goods purchased for sale totalled P1,200,000 in cash. Beginning and ending inventory of goods for sale, respectively, were P200,000 and P300,000. 1-year advanced rent of P30,000 to apply for 2020 was received from a sublease contract. P40,000 total interest income from customers promissory note earned P30,000 of this was collected. Unrealized foreign exchange gains from foreign currency receivable totaled P60,000. Using cash basis, compute the total income subject to income tax. P990,000 P750,000 P960,000 P690,000 ADD EXPLANATION THANKSFlounder Corp. has the following account balances at December 31, 2021: Notes payable ($50,000 due after 12/31/22) $84,000 Unearned service revenue 59,000 Mortgage Payable ($76,000 due in 2022) 210,000 Salaries payable 27,000 Accounts payable 53,000 In addition, Flounder is involved in a lawsuit. Legal counsel feels it is probable Flounder will pay damages of $21,000 in 2022. Flounder records provisions related to litigations in the account Litigation Liability.Prepare the current liabilities section of Flounder’s December 31, 2021, balance sheet.If 15,000 miles were used in 2022 for business travel and the expenses in 2022 for business-related travel were $8,456, which deduction should a person take? (Use the standard deduction mileage reimbursement rate of 62.5 cents for the 2022 calculation). The standard deduction of $8,625. The actual expense (itemized) deduction of $8,456. The actual expense deduction of $8,625. The standard deduction of $9,375.