ACCOUNTING
Tony Company acquires equipment on January 1, 2017. Information on cost is
as follows:
Purchase price, gross of P10,000 trade discount 800,000
Non- refundable purchase taxes 20,000
Delivery and handling costs 40,000
Installation costs 30,000
Present value of decommissioning and
Restoration costs 10,000
How much is the initial cost of the equipment
A. 900,000 C. 870,000
B. 820,000 D. 890,000
Homework Answers
Request Answer!
We need at least 9 more requests to produce the answer.
1 / 10 have requested this problem solution
The more requests, the faster the answer.
What are the accounting implications of the issue above? Can you also clearly show any accounting...
What are the accounting implications of the issue
above? Can you also clearly show any accounting adjustments
required?
During 2018, Voodoo Limited decided to update and network the company's computer equipment. The details are as follows: List price of computer hardware Additional costs: 1,000,000 Shipping and handling Cabling and wiring One month testing prior to going live Four year on-site maintenance contract Own staff costs related to preparation of offices prior to installation 40,000 60,000 20,000 160,000 32,000 With respect...
The following is extracted information from financial statements of Kabuku Ltd for the years 2005 to...
The following is extracted information from financial statements of Kabuku Ltd for the years 2005 to 2009 Income statement as at year end 31st Dec 2005 2006 2007 2008 2009 Sales 800,000 1,000,000 1,100,000 900,000 1,200,000 Cost of Sales 600,000 810,000 850,000 700,000 900,000 Operating Expenses:- Office expenses 20,000 30,000 35,000 25,000 25,000 Selling expenses 30,000 40,000 40,000 35,000 30,000 Miscellaneous income 30,000 40,000 50,000 20,000 40,000 Non-operating expenses 30,000 20,000 25,000 30,000 35,000 Comparative income statement (for years 2006...
Question: Question:1. When the percentage-of-completion method of accounting for long-term contracts, the percentage of completion used to...
Question: Question:1. When the percentage-of-completion method of accounting for long-term contracts, the percentage of completion used to recognize gross profit in the first year usually is determined by measuring: a. costs incurred in the first year, divided by estimated remaining costs to complete the project. b. costs incurred in the first year, divided by estimated total cost of the completed project. c. costs incurred in the first year, divided by estimated gross profit. d. none of the above. 2.As of...
The following is the Statement of Profit or Loss and the Statements of Financial Position for...
The following is the Statement of Profit or Loss and the Statements of Financial Position for Nachos Bhd (NB) for the year 2019: Nachos Bhd Statement of Profit or Loss For the year ended 30 September 2019 RM RM Sales 220,000 Cost of sales (98,000) Gross profits 122,000 Selling and distribution costs 25,000 Administrative costs 15,000 Depreciation 2,000 Profit on sale of plant (2,000) (40,000) 82,000 Interest expense (6,000) Investment income 1,000 Gain on sale of investment 2,000 Profit before...
UESTION 1 Beach Front Foods Inc. has decided to add a delivery service to its business....
UESTION 1 Beach Front Foods Inc. has decided to add a delivery service to its business. At the beginning of 2020 the company purchased a car to use to deliver customer orders. The purchase price of the car included non-refundable taxes. The car was painted with the store logo and they had to purchase the annual license fee. During the year they purchased gas to run the car and paid maintenance costs. 42,000 5,800 Purchase price of car Non-refundable taxes...
10. A project will use equipment with a purchase price of $105,000. It will also require...
10. A project will use equipment with a purchase price of $105,000. It will also require delivery costs of $15,000 and installation costs of $30,000. Net working capital of $25,000 will also be required. The project is expected to generate EBIT of $70,000 each year, of which $15,000 is depreciation. The useful life of the project is 10 years. The equipment will be sold for $30,000 at the end of the project. The company's tax rate is 40%, and has...
E10.4 (LO 1) (Purchase and Self-Constructed Cost of Assets) Worf Co. both purchases and constructs various...
E10.4 (LO 1) (Purchase and Self-Constructed Cost of Assets) Worf Co. both purchases and constructs various equipment it uses in its operations. The following items for two different types of equipment were recorded in random order during the calendar year 2020. Purchase Cash paid for equipment, including sales tax of $5,000 $105,000 Freight and insurance cost while in transit 2,000 Cost of moving equipment into place at factory 3,100 Wage cost for technicians to test equipment 4,000 Insurance premium paid...
The UFRO Company is considering the replacement of an existing spectrometer with a new spectrometer; faster...
The UFRO Company is considering the replacement of an existing spectrometer with a new spectrometer; faster and with expanded capacity. If the new spectrometer is purchased, the existing (old) computer will be sold for $30,000 immediately. The existing spectrometer was purchased four (4) years ago for $300,000. It is being depreciated under the 3-year MACRS schedule. The salvage value at the end of its seven-year life will be $30,000. The new spectrometer will be purchased for $500,000. If the new...
The following table is the production possibilities for a 1000 acre farm that can grow wheat...
The following table is the production possibilities for a 1000 acre farm that can grow wheat or cotton. Identify the correct statement below. Wheat production (Bushels) | Cotton Production (pounds) 0 | 800,000 10,000 | 740,000 20,000 | 660,000 30,000 | 550,000 40,000 | 410,000 50,000 | 230,000 60,000 | 0 a- wheat production does not have an opportunity cost b- marginal opportunity costs are increasing as the farmer increases wheat production c- cotton technology is increasing as wheat production...
Exercise 17-3 Assigning costs using ABC LO P3 Xie Company identified the following activities, costs, and...
Exercise 17-3 Assigning costs using ABC LO P3 Xie Company identified the following activities, costs, and activity drivers for 2017. The company manufactures two types of go-karts: Deluxe and Basic. Activity Handling materials Inspecting product Processing purchase orders Paying suppliers Insuring the factory Designing packaging Expected Costs $625,000 900,000 105,000 175,000 300,000 75,000 Expected Activity 100,000 parts 1,500 batches 700 orders 500 invoices 40,000 square feet 2 models Assume that the following information is available for the company's two products...
What are the accounting implications of the issue
above? Can you also clearly show any accounting adjustments
required?
During 2018, Voodoo Limited decided to update and network the company's computer equipment. The details are as follows: List price of computer hardware Additional costs: 1,000,000 Shipping and handling Cabling and wiring One month testing prior to going live Four year on-site maintenance contract Own staff costs related to preparation of offices prior to installation 40,000 60,000 20,000 160,000 32,000 With respect...
UESTION 1 Beach Front Foods Inc. has decided to add a delivery service to its business. At the beginning of 2020 the company purchased a car to use to deliver customer orders. The purchase price of the car included non-refundable taxes. The car was painted with the store logo and they had to purchase the annual license fee. During the year they purchased gas to run the car and paid maintenance costs. 42,000 5,800 Purchase price of car Non-refundable taxes...
10. A project will use equipment with a purchase price of $105,000. It will also require delivery costs of $15,000 and installation costs of $30,000. Net working capital of $25,000 will also be required. The project is expected to generate EBIT of $70,000 each year, of which $15,000 is depreciation. The useful life of the project is 10 years. The equipment will be sold for $30,000 at the end of the project. The company's tax rate is 40%, and has...
E10.4 (LO 1) (Purchase and Self-Constructed Cost of Assets) Worf Co. both purchases and constructs various equipment it uses in its operations. The following items for two different types of equipment were recorded in random order during the calendar year 2020. Purchase Cash paid for equipment, including sales tax of $5,000 $105,000 Freight and insurance cost while in transit 2,000 Cost of moving equipment into place at factory 3,100 Wage cost for technicians to test equipment 4,000 Insurance premium paid...
Exercise 17-3 Assigning costs using ABC LO P3 Xie Company identified the following activities, costs, and activity drivers for 2017. The company manufactures two types of go-karts: Deluxe and Basic. Activity Handling materials Inspecting product Processing purchase orders Paying suppliers Insuring the factory Designing packaging Expected Costs $625,000 900,000 105,000 175,000 300,000 75,000 Expected Activity 100,000 parts 1,500 batches 700 orders 500 invoices 40,000 square feet 2 models Assume that the following information is available for the company's two products...
Most questions answered within 3 hours.
-
The denaturation of proteins can be described by the
equilibrium
F⇌U
where F and U represent...
asked 47 minutes ago -
Please answer what the maximum and minimum force is, and the
angle on the ion is...
asked 49 minutes ago -
implement a program that reads a number of rows and a symbol.
The program will draw...
asked 54 minutes ago -
Assume that when adults with smartphones are randomly selected,
45% use them in meetings or classes....
asked 58 minutes ago -
Determine the number of formula units of
Na2SO4 and moles of oxygen contained in 8.11
moles...
asked 1 hour ago -
Explain in steps on the following code
What would be the output when executed
using System;...
asked 1 hour ago -
Given the information in the table, which of the following
statements is CORRECT?
Stock A
Stock...
asked 1 hour ago -
Write MARIE assembly language programs that do the following:
Write a program that inputs an integer...
asked 1 hour ago -
Explain an understanding of services and protocols.
Explain the job of DNS.
Explain the three email...
asked 1 hour ago -
(As soon as possible) Balance each of the following equations
according to the half-reaction method:
H2O2(aq)...
asked 1 hour ago -
A thin rod with a mass of 3.5kg and a length L=1.5 m is oriented
horizontally....
asked 1 hour ago -
Inheritance pattern in BRCA 1
Describe the inheritance pattern of BRCA 1 Is it recessive or...
asked 1 hour ago