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Following are the five events of DDT corporation?

Following are the five events of DDT CORPORATION: a. On December 31, purchased a machinery at a price of $ 6,00,000 and signed a note payable due in six months with interest of 9 percent. b. On December 31, estimated that warranty work costing $ 5,00,000 will need to be performed in coming months on those products which were sold in this year with a 12-month warranty. c. On December 31, pay checks totaling $ 289,000 were issued to employees .As these cheques were issued after banking hours on December 31, no cash will be disbursed from payroll bank account until early in January next year. The amounts withheld from employee’ pay and payroll taxes on the employer, $ 51000 and $ 27000 respectively, were remitted to tax authorities next month. d. On November 1, borrowed $ 900000 from a bank signing a 90 day note payable for $ 918000, with interest included in the face amount. e. On November 3, signed a contract for the purchase of 30000 barrels of oil per month in the coming year at a price of $ 30 per barrel. Required: Identify the $ amounts that should appear in the current or long term liabilities sections at the year-end balance sheet of the current year and also identify figures with relevant information that should be disclosed in the notes to financial statements. Briefly explain reasons underlying your answers. Assume the financial statements are completed and issued on January 15, next year.
Following are the five events of DDT corporation?
AR Arsalan khan asked on 01 March 2021, 02:17
2 answers / 0 votes / 12 views

Accounting?

E.r.gjer.QU'sasset has a book value Of P 1 and a fair market value Of PI 1 and the book value Of its liabilities amounted to and the fair market value Of On January I, 2020 Prateroon Company purchased all the net assets Of Stranemon Company consisting Of.' Issuance Of 20,000 unissued shares Of its PIO par value ordinary share capital As Of this date, the shares Of Prateroon were selling at P40 per share. Issuance Of bonds with a face value Of P300,OOO but are currently at IIO. A contingent payment Of P200,OOO cash on January I, 2020, if the average income Of Stranemon Company during the two-year period (2020-2021) exceeds P250,OOO per year- Prateroon estimates that there is a 20% chance or probability that the P200,000 payment will be required, Issuance Of 5,000 additional shares on January I, 2022 to the former shareholders Of Stranemon Company ifthe average income cover the next two years (2020-2021) equalled or exceeded P3SO,OOO. The additional 5,000 shares expected to be issued are valued at Professional fees Of P9,OOO were also paid by Prateroon to its external auditors to finalize the business combination. As Of the date Of acquisition, Stranemon Company reported the following book value and current market data: 300 k Fair Value Cash Inventory Buildings, net Equipment, net Value 60,000 120,000 500,000 410,000 Accounts Payable Ordinary Share Capital Share Premium Retained Earnings Book Value 36,000 720,000 164,000 170,000 Fair Value 40,000 60, OOO 180,000 560,000 440,000 Compute the Consolidated Total Liabilities on January 1, 2020.
Accounting?
NI Nini asked on 01 March 2021, 00:40
2 answers / 0 votes / 11 views

Assume that you can invest to earn a stated annual rate of return of 12%, but where interest is compounded semiannually. If you make consecutive semi-annual deposits of P500 each, with the first deposit being made today, what will your balance be at the e

Assume that you can invest to earn a stated annual rate of return of 12%, but where interest is compounded semiannually. If you make consecutive semi-annual deposits of P500 each, with the first deposit being made today, what will your balance be at the end of Year 5?
XC Xcalibur123 asked on 28 February 2021, 12:27
0 answers / 0 votes / 9 views

Audit Problem?

NA Nairahtambie@yahoo.com asked on 26 February 2021, 13:25
1 answers / 0 votes / 22 views

At which amount should Barilgaon’s raw materials inventory be reported on the statement of financial position? Why?

Barilgaon Company purchased a significant amount of raw materials inventory for a new product that it is manufacturing. It uses the LCNRV rule for these raw materials. The net realizable value of the raw materials is below the original cost. Barilgaon uses the FIFO inventory method for these raw materials. In the last 2 years, each purchase has been at a lower price than the previous purchase, and the ending inventory quantity for each period has been higher than the beginning inventory quantity for that period. Required: i) At which amount should Barilgaon’s raw materials inventory be reported on the statement of financial position? Why? ii) In general, why is the LCNRV rule used to report inventory? iii) What would have been the effect on ending inventory and cost of goods sold had Barilgaon used the average-cost inventory method instead of the FIFO inventory method for the raw materials? Why?
RO Robert99 asked on 24 February 2021, 05:18
1 answers / 0 votes / 24 views

Audit for Accounts Receivable?

As the manager of the accounts receivable department for Beavis Leather Goods, Ltd., you recently noticed that Kelly Collins, your accounts receivable clerk who is paid $12000 per month, has been wearing unusually tasteful and expensive clothing. (This is Beavis's first year in business.) This morning, Collins drove up to work in a brand new Lexus. Naturally suspicious by nature, you decide to test the accuracy of the accounts receivable balance of $1,320,000 as shown in the ledger. The following information is available for your first year (precisely 9 months ended September 30, 2010) in business. Collections from customers .......................$1,980,000 Merchandise purchased................................3,600,000 Ending merchandise inventory........................900,000 Goods are marked to sell at 40% above cost. Assuming all sales were made on account, compute the ending balance that should appear in the ledger, noting any apparent shortage. Draft a memo dated on October 3, 20x7 to Jay Corales, the branch manager explaining the fact in this situation. Remember that this problem is serious and you do not want to make hasty accusations.
IM Imbeybeyy asked on 23 February 2021, 12:33
0 answers / 0 votes / 76 views

Mighty Tools Hardware runs a network of small hardware retail outlets across the state. All sales are made for cash or on credit card and processed through electronic tills. A wide range of goods are stocked by the stores, meaning that the business deals

Mighty Tools Hardware runs a network of small hardware retail outlets across the state. All sales are made for cash or on credit card and processed through electronic tills. A wide range of goods are stocked by the stores, meaning that the business deals with a large number of suppliers. All goods are purchased on credit with varying terms, depending on the supplier. Invoices are paid by cheque after a package of documents is collated and approved for payment. Ordering of goods and subsequent payments are processed by the central office with delivery direct from supplier to the stores — no central warehouse is used. Mighty Tools uses a perpetual stock system and conducts test counts at regular periods throughout the year. Required: What controls should exist for inventory movements at the local store level and the central office? Explain how the stocktake for Mighty Tools Hardware should be audited. What details are most important?
SI Siraj asked on 18 February 2021, 10:24
1 answers / 0 votes / 39 views

Problem 1-9 (IAA) On December 1, 2020, Wacky Company established an imprest petty cash fund 2020 Dec. 1 Established an imprest petty crush Fund of P10,000 writing a check on National Bank 90 Replenished the petty cash fund by writing a chic?

Problem 1-9 (IAA) On December 1, 2020, Wacky Company established an imprest petty cash fund 2020 Dec. 1 Established an imprest petty crush Fund of P10,000 writing a check on National Bank 90 Replenished the petty cash fund by writing a chick on National Bank. The fund contained Currency and coin Vouchers for selling expenses Vouchern for micellaneous expone Vouchers for equipment 100D 0.000 2.000 2.000 Dec. 31 The petty cash fund was not replenished. The fund contained Currency and con 6,000 Postdated employee'e check Vouchers for an expenses 1.500 Vouchers for transportation 2.000 2091 Jan. 15 Encashed the employee's check. The proceeds were retained in the fund. 31 Replenished the petty cash fund by writing a check on National Bank. The petty cash vouchers for January expenditures are Distribution coste Administrative experts Transportation Payment for supplier's invoice 500 2.000 1,000 1.200 Required: 1. Prepare journal entries to record the transaction 2 How much is the petty cash on January 31, 2021 before the replenishment? 25
RE Ress2xz asked on 03 February 2021, 03:08
2 answers / 0 votes / 238 views

How would Uber’s balance sheet be impacted by its $2 billion bond issuance?

Uber Technologies Inc. issued $2 billion of bonds in October 2018. The total bond issuance included $500 million of five-year bonds with a 7.5% coupon and $1.5 billion of eight-year bonds with an 8% coupon. This bond issuance is Uber’s first bond offering, but it has taken out loans with private investors totaling $2.65 billion to date. Uber is currently privately held, but is preparing for its initial public stock offering, expected in 2019. In its marketing materials for the bond issuance, Uber revealed that it was profitable in the past year in South America and Europe, but had losses in North America due to competition with Lyft. Overall, Uber had adjusted earnings before interest, taxes, depreciation and amortization of negative $698 billion through the end of June 2019. Questions 1. How would Uber’s balance sheet be impacted by the $2 billion bond issuance on the date of issuance? 2. How much in cash interest would Uber pay on this bond issuance in 2019? 3. If Uber is not profitable, why do you think creditors would be willing to purchase Uber’s bonds?
How would Uber’s balance sheet be impacted by its $2 billion bond issuance?
KO Kotaesearch asked on 17 January 2021, 08:17
2 answers / 0 votes / 57 views

Calculate Total Assessable Income, Taxable Income, Tax Liability, Medicare Levy and Medicare Levy Surcharge, if applicable, for the tax payer (James) with information belowJames is a resident single tax payer of Australia for the tax year 2019-2020 His ?

Calculate Total Assessable Income, Taxable Income, Tax Liability, Medicare Levy and Medicare Levy Surcharge, if applicable, for the tax payer (James) with information below: James is a resident single tax payer of Australia for the tax year 2019-2020 His Taxable Salary earned is $170,000 (Including tax withheld) having no private health insurance. James has a student loan outstanding for his previous studies at Monash University of $57,000. James’ employer pays superannuation guarantee charge of 9.5% on top of his salary to his nominated fund. James earned a passive income of $15,000 from the investments in shares in the same tax year. provide the detailed calculations, rates and explanations with the screenshots of rates from ATO website.
AD Admin asked on 10 January 2021, 18:34
1 answers / 0 votes / 42 views

LEASEHOLD IMPROVEMENT?

Victory Company signed a 6-year lease for a store space on January 1, 2017. The entity has an option to renew the lease for an additional 4-year period on or before January 1, 2020. During January 2019, the entity made substantial improvement to the store. The cost of the improvement was P1,080,000 with an estimated useful life of 10 years. On December 31, 2019, the entity intended to exercise the renewal option. The entity has taken a full year depreciation on this leasehold improvement for 2019. On December 31, 2019, what is the carrying amount of the leasehold improvement? A.P810,000 B.P900,000 C.P945,000 D.P972,000
MA Mamiya asked on 18 December 2020, 08:21
2 answers / 0 votes / 79 views

DEFFERED TAX LIABILITY?

An entity computed its pre-tax income in its GAAP compliant books at P2,450,000 while its income per income tax return properly computed at P2,850,000. There has been a temporary difference causing the discrepancy between the two amounts. The tax rate is 30%. How much is the Deferred Tax Liability of the company to be presented in its statement of financial position? * A.P120,000 B.P855,000 C.P735,000 D.P0
MA Mamiya asked on 18 December 2020, 08:18
2 answers / 0 votes / 72 views

LEASEBACK TRANSACTION?

To raise operating funds, Pepero Company sold its equipment on March 31, 2019 for P470,000 and immediately leased the equipment back. The fair value of the asset is P700,000 and the equipment has a carrying value of P650,000. The annual rental payments of P100,000 is significantly lower than the fair rental of P125,000 for this type of equipment. Lease term is 12 years out of total life of 25 years. How much loss should be deferred beyond 2019 as a result of this leaseback transaction? * A.P11,250 B.P168,750 C.P180,000 D.P52,500
MA Mamiya asked on 18 December 2020, 08:17
2 answers / 0 votes / 72 views

INCOME TAX PAYABLE?

Lax Company at the end of 2019, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows: Pretax financial income P900,000; Estimated litigation expense P1,200,000; Extra depreciation for taxes (P1,800,000); Taxable income P400,000. The estimated litigation expense of P1,200,000 will be deductible in 2020 when it is expected to be paid. Use of the depreciable asset will result in taxable amounts of P600,000 in each of the next three years. The income tax rate is 30% for all years. Income tax payable is * A.P0 B.P120,000 C.P180,000 D.P270,000
MA Mamiya asked on 18 December 2020, 08:16
2 answers / 0 votes / 64 views

Cost of right of use asset?

At the beginning of 2020, Trump Company leased an equipment with the following information: Annual rental payable at the end of each year P450,000; residual value guarantee P50,000; Lease incentive received P20,000; Lease term 4 years; Useful life of the equipment 8 years; implicit interest rate 10%; present value of an ordinary annuity of 1 at 10% for 4 periods 3.17; present value of 1 at 10% for 4 periods 0.68. What is the cost of right of use asset? * A. P1,440,500 B. P1,460,500 C. P1,456,500 D. P1,830,000
MA Mamiya asked on 18 December 2020, 08:14
2 answers / 0 votes / 91 views

Compensation expense ?

On January 1, 2020 share options were granted to employees where they can purchase 100,000 ordinary shares of P80 par value at P100 per share. The fair value of the share options on this date was P25 per share. The officers are entitled to the share options only after completing two years of service. The options can be exercised starting January 1, 2022 and shall expire on December 31, 2022. The amount of compensation expense to be reported in 2020 is * A. P0 B. P1,250,000 C. P2,500,000 D. P8,000,000
MA Mamiya asked on 18 December 2020, 08:12
2 answers / 0 votes / 75 views

Financial Revenue to be recognized over the lease term?

Aragon Co. leased an equipment to a lessee on January 2, 2010 under a direct financing lease with the following provisions - cost of equipment P1,695,000; Annual rental payable at the end of the year P300,000; Useful life and lease term, 10 years. Aragon Co. incurred and paid P71,700 in negotiation and arranging the lease. The present value of an ordi nary annuity of 1 at 12% for 10 years is 5.650 and the present value of an ordinary annuity of 1 at 11% for 10 years is 5.889. What is the total financial revenue to be recognized over the lease term?
SY Syj.jessica asked on 17 December 2020, 11:06
2 answers / 0 votes / 71 views

Accounting?

Dynasty Company sells gift certificates redeemable only when merchandise is purchased. Upon redemption, Dynasty Company recognizes the unearned revenue as realized. Information for 2019 is as follows: Unearned Revenue, January 1, 2019 P650,000; Gift certificates sold P2,250,000; Gift certificates redeemed P1,950,000; Gift certificates unredeemed for a long time P100,000; Cost of Goods Sold 60%. What amount should be reported as Unearned Revenue on December 31, 2019, following the ruling by the Department of Trade and Industry that gift certificates no longer have an expiration period?
SY Syj.jessica asked on 17 December 2020, 11:02
2 answers / 0 votes / 130 views

Valuation Help?

1.XYZ Company is exploring two mutually exclusive opportunities. There are two available opportunities for XYZ with the following information: a. ABC Company has projected annual returns of Php7 million and outstanding liabilities of Php5 million. b. DEF Company has projected annual returns of Php12 million and outstanding liabilities of Php20 million. c. Both companies have terminal value of Php100 million. If you will assess the company for five years with the required rate of return of 10%, which company will you recommend purchasing and how much? Why? 2. Using the information in No. 1, which is a better choice if the initial investment for ABC Company and DEF Company is Php50 million and Php110 million, respectively. The cost of capital for the two companies are 10%.
MA Maryangelu758 asked on 17 December 2020, 00:56
2 answers / 0 votes / 239 views

N Preparation For Significant Expansion Of Its International Operations, ABC Co. Has Adopted A Plan To Gradualy Shift To The Same Accounting?

In preparation for significant expansion of its international operations ARC Co. has adopted a plan to gradualty shift to the same accounting methods as used by its international competitors. Part of this plan Includes a switch from LIFO •nventary accounting to FIFO recall that IFRS does not allow LIFO}. APIC decides to make the switch to FIFO at January 1.2017. The following data pertains to ABC's 2017 financjal statements ('n millions of dollars). Sales Inventory purchases 12/31 n 7 •nventory (using Compensation expense $560 350 580 17 All sales and purchases were with cash. All of 201 Ts compensation expense was paid with cash, (Ignore taxes.) ABCs property, plante and equipment cost $400 million and has an estlmated useful life of 10 years with no salvage value. ARC Co. reported the following for fiscal 2016 On millions of dollars): ABC CO. BALANCE SHEET AT DECEMBER 31, 2016 Cash Inventory Property. plant. and equipment Accumulated deprecation Total assets ABC CO. INCOME STATEMENT 2016 365 t 80) 2015 480 tA0) 1 *040 Common stock Retained earnings Total equity 2016 500 685 1,185 2015 500 54n FOR THE YEAR ENDED DECEMBER 31, 2016 Sales Cost of goods sold Depreciation expense Compensation expense Net income 2016 $ sco (300) 140) 115) s 145 Summary of Significant Accounting polices Inventory. The company accounts for inventory by the LIFO method. The current cost of the companys inventory, which approximates FIFO, was $60 and $SC higher at the end of fiscal 2016 and 2015. respectlvety. than those reported in the balance sheet. Requirement 1: Accounting Prepare ABC's December 31 2017. balance sheet and an income statement for the year ended December 2017. In columns beside 2017's numbers. include 2016's numbers as they woujd appear in the 207 7 finonclfiij statementsfor comporatjve purposes.
N Preparation For Significant Expansion Of Its International Operations, ABC Co. Has Adopted A Plan To Gradualy Shift To The Same Accounting?
RE Reynita21 asked on 08 December 2020, 18:52
2 answers / 0 votes / 59 views