A. Post the journal entries to their ledger using T-Account Format. Use Additional information on Enrichment Activity 2-1 and use the trial balance for the beginning balances.B. Prepare Trial balance, as of April 30, 2021. Friendly TruckingTrial BalanceApril 01, 2021Dr.Cr.CashAccounts ReceivableSuppliesTransportation EquipmentAccounts PayableN. Ferrer, CapitalN. Ferrer, DrawingsTrucking IncomeSalaries ExpenseRent ExpenseUtilities ExpenseMiscellaneous ExpenseTotalsP320,00042,5004,200157,000P 52,200499,70052,00066,80029,00010,0003,200800P618.700P618.700 Enrichment Activity 2-1DateAccount Titles and ExplanationPRDebitCredit1 Apr.1 CashNels Ferrer, CapitalP5000001PS000002323to record the additional investment.4sol0001 Transportation EquipmentCash (250,000 x 50%]Accounts Payableto record the purchased equipment.6.12567.125000Rent Expense500010110Cash50001111to record the paid rental for the month12131213132004 CashAccounts Recievableto record the collected accounts from the previous month.141415151616171830000 1920212217300005 CashTrucking Incometo record the trucking income earned.181920211000010 Salaries ExpenseCashto record the paid salaries220000T242323242525240015 CashRental Revenueto record the rented vehicle to Joshua26262400 272829272829200018 Utility ExpenseCashto record the paid electric bill.303020003233343536373131323320 Cash150003435363738Accounts Recievableto record the recieved balance from Joshua.2300025 Office SuppliesAccounts Payableto record the purchased office supplies38|23000393940404142lolo 43P868600 O868600 444129 CashTrucking Incometo record the collected trucking income.42180004344454546462.2)

Posting to the ledger: Cash A/c Date Particulars Debit Amount(P) Date Particulars Credit Amount…

P500000 1 Cash Nels Ferrer, Capital to record the additional investment. Apr. PS00000 250 0|0|0 1 Transportation Equipment Cash (250,000 x 50%] Accounts Payable to record the purchased equipment. 129 |125000 5|0 0|0 1 Rent Expense Cash to record the paid rental for the month 5000 4 Cash 13200 Accounts Recievable 200 to record the collected accounts from the previous month. 30000 5 Cash Trucking Income to record the trucking income earned. 30000 10000 10 Salaries Expense Cash to record the paid salaries 10000 15 Cash 2400 Rental Revenue 2400 to record the rented vehicle to Joshua 2000 18 Utility Expense Cash to record the paid electric bil. 2000 15000 20 Cash Accounts Recievable to record the recieved baiance from Joshua. |15|0|0|0 23000 25 Office Supplies Accounts Payable to record the purchased office supplies 23000 29 Cash 18000 Trucking Income |이0 to record the collected trucking income. 00 1. a. ol 6 6)

P500000 1 Cash Nels Ferrer, Capital to record the additional investment. Apr. PS00000 250 0|0|0 1 Transportation Equipment Cash (250,000 x 50%] Accounts Payable to record the purchased equipment. 129 |125000 5|0 0|0 1 Rent Expense Cash to record the paid rental for the month 5000 4 Cash 13200 Accounts Recievable 200 to record the collected accounts from the previous month. 30000 5 Cash Trucking Income to record the trucking income earned. 30000 10000 10 Salaries Expense Cash to record the paid salaries 10000 15 Cash 2400 Rental Revenue 2400 to record the rented vehicle to Joshua 2000 18 Utility Expense Cash to record the paid electric bil. 2000 15000 20 Cash Accounts Recievable to record the recieved baiance from Joshua. |15|0|0|0 23000 25 Office Supplies Accounts Payable to record the purchased office supplies 23000 29 Cash 18000 Trucking Income |이0 to record the collected trucking income. 00 1. a. ol 6 6)

Accounting (Text Only)

26th Edition

ISBN:9781285743615

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter10: Fixed Assets And Intangible Assets

Section: Chapter Questions

Problem 10.1APR: Allocating payments and receipts to fixed asset accounts The following payments and receipts are...

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Allocating payments and receipts to fixed asset accounts The following payments and receipts are related to land, land improvements, and buildings acquired for use in a wholesale apparel business. The receipts are identified by an asterisk. a. Fee paid to attorney for title search 3,600 b. Cost of real estate acquired as a plant site: Land 720,000 Building (to be demolished) 60,000 c. Finders fee paid to real estate agency 23,400 d. Delinquent real estate taxes on property, assumed by purchaser 15,000 e. Architects and engineers fees for plans for new building 75,000 f. Cost of removing building purchased with land in (b) 10,000 g. Proceeds from sale of salvage materials from old building 3,400 h. Cost of filling and grading land 18,000 i. Premium on one-year insurance policy during construction. 8,400 j. Money borrowed to pay building contractor 800,000 k. Special assessment paid to city for extension of water main to the property 13,400 1. Cost of repairing windstorm damage during construction 3,000 m. Cost of repairing vandalism damage during construction 2,000 n. Cost of trees and shrubbery planted 14,000 o. Cost of paving parking lot to be used by customers 21,600 p. Interest incurred on building loan during construction 40,000 q. Proceeds from insurance company for windstorm and vandalism damage 4,500 r. Payment to building contractor for new building 800,000 s. Refund of premium on insurance policy (i) canceled after 10 months 1,400 Instructions 1.Assign each payment and receipt to Land (unlimited life), Land Improvements (limited life), Building, or Other Accounts. Indicate receipts by an asterisk. Identify each item by letter and list the amounts in columnar form, as follows: Item Land Land Improvements Building Other Accounts 2.Determine the amount debited to Land, Land Improvements, and Building. 3.The costs assigned to the land, which is used as a plant site, will not be depreciated, while the costs assigned to land improvements will be depreciated. Explain this seemingly contradictory application of the concept of depreciation. 4.What would be the effect on the current years income statement and balance sheet if the cost o f paving the parking lot o f 21,600 [payment (o)] was incorrectly classified as Land rather than Land Improvements? Assume that Land Improvements are depreciated over a 10-year life using the double-declining-balance method.
Allocating payments and receipts to fixed asset accounts The following payments and receipts are related to land, land improvements, and buildings acquired for use in a wholesale ceramic business. The receipts are identified by an asterisk. a. Fee paid to attorney for title search 2,500 b. Cost of real estate acquired as a plant site: Land 285,000 Building (to be demolished) 55,000 c. Delinquent real estate taxes on property, assumed by purchaser 15,500 d. Cost of tearing down and removing building acquired In (b) 5,000 e. Proceeds from sale of salvage materials from old building 4,000 f. Special assessment paid to city for extension of water main to the property 29,000 g. Architects and engineers fees for plans and supervision 60,000 h. Premium on one-year insurance policy during construction 6,000 i. Cost of filling and grading land 12,000 j. Money borrowed to pay building contractor 900,000 k. Cost of repairing windstorm damage during construction 5,500 1. Cost of paving parking lot to be used by customers 32,000 m. Cost of trees and shrubbery planted 11,000 n. Cost of floodlights installed on parking lot 2,000 o. Cost of repairing vandalism damage during construction 2,500 p. Proceeds from insurance company for windstorm and vandalism damage 7,500 q. Payment to building contractor for new building 800,000 r. Interest incurred on building loan during construction 34,500 s. Refund of premium on insurance policy (h) canceled after 11 months 500 Instructions 1.Assign each payment and receipt to Land (unlimited life), Land Improvements (limited life), Building, or Other Accounts. Indicate receipts by an asterisk. Identify each item by letter and list the amounts in columnar form, as follows: Item Land Land improvements Building Other Accounts 2.Determine the amount debited to Land, Land Improvements, and Building. 3.The costs assigned to the land, which is used as a plant site, will not be depreciated, while the costs assigned to land improvements will be depreciated. Explain this seemingly contradictory application of the concept of depreciation. 4.What would be the effect on the current years income statement and balance sheet if the cost of filling and grading land of 12,000 [payment (i)] was incorrectly classified as Land Improvements rather than Land? Assume that Land Improvements are depreciated over a 20-year life using the double-declining-balance method.
Allocating payments and receipts to fixed asset accounts The following payments and receipts are related to land, land improvements, and buildings acquired for use in a wholesale apparel business. The receipts are identified by an asterisk. A. Fee paid to attorney for title search............................................ 3,600 B. Cost of real estate acquired as a plant site: Land................................ 720,000 Building (to be demolished)........... 60,000 C. Finder's fee paid to real estate agency.......................................... 23,400 D. Delinquent real estate taxes on property, assumed by purchaser................. 15,000 E. Architect's and engineer's fees for plans for new building....................... 75,000 F. Cost of removing building purchased with land in (B)............................ 10,000 G. Proceeds from sale of salvage materials from old building....................... 3,400 H. Cost of filling and grading land................................................ 18,000 1. Premium on one-year insurance policy during construction...................... 8,400 J. Money borrowed to pay building contractor.................................... 800,000 K. Special assessment paid to city for extension of water main to the property....... 13,400 L. Cost of repairing windstorm damage during construction....................... 3,000 M. Cost of repairing vandalism damage during construction........................ 2,000 N. Cost of trees and shrubbery planted........................................... 14,000 0. Cost of paving parking lot to be used by customers............................. 21,600 P. Interest incurred on building loan during construction.......................... 40,000 Q. Proceeds from insurance company for windstorm and vandalism damage........ 4,500 R. Payment to building contractor for new building................................ 800,000 S. Refund of premium on insurance policy (1) canceled after 10 months............. 1,400 Instructions 1. Assign each payment and receipt to Land (unlimited life), Land Improvements (limited life), Building, or Other Accounts. Indicate receipts by an asterisk. Identify each item by letter and list the amounts in columnar form, as follows: Item Land Land Improvements Building Other Accounts 2. Determine the amount debited to Land. Land Improvements, and Building. 3. The costs assigned to the land, which is used as a plant site, will not be depreciated, while the costs assigned to land improvements will be depreciated. Explain this seemingly contradictory application of the concept of depreciation. 4. What would be the effect on the income statement and balance sheet if the cost of paving the parking lot of 21,600 [payment (0)] was incorrectly classified as Land rather than Land Improvements? Assume Land Improvements are depreciated over a 10-year life using the double-declining-balance method.
QUESTION 1The following trial balance relates to Golden Ltd at 30th September 2018 GHS'000 GHS'000Sales (a) 760,000Material purchases (b) 128,000Production labour (b) 248,000Factory overheads (b) 160,000Distribution costs 28,400Administrative expenses (c) 92,800Finance costs 700Investment income 1,600Leased property - at cost (b) 100,000Plant and equipment - at cost (b) 89,000Accumulated amortisation/depreciation at 1/10/2017- leased property 20,000- plant and equipment…
i) Company X Financial Year ends March 31. A laptop purchased 02 August 2018 at a cost of P9,500 was disposed off in January 2020 for P6800. Assuming the organisation follows local GAAPS on depreciation, provide the Journal Entries for this transaction. Outline all assumptions used. (ii) The following in being considered: Purchase of an office building worth P1M from unrestricted funding. Currently, the office building is on a 2-year lease, with rentals of BWP22,000 per month. 11 Provide your recommendations to the Finance Manager. What would be the possible effect on the Financial Health of the organisation if these transactions are approved (iii) List any key financial controls for an NGO and why these are important. (iv) Company X’s year-end is March 31. It is now April 4. A staff member asks you to process an unpaid invoice with details as follows: The invoice is for bus transportation in the amount of P800 and is dated April 2. The invoice indicates the charges relate to…
Problem 2. DOLE acquires an investment for P250,000. Transaction costs amount to P15,000. Journalize the initial measurement if the investment is classified as: a. Financial asset held for trading b. Held-to-maturity investments c. Available-for-sale assets
Question 6The following trial balance was extracted from the ledger of Juliana at 31 December2020. JulianaTrial Balance as at 31 December 2020 RM RMLand at cost 26,000Plant at cost 83,000Accumulated Depreciation at 1 January 2020- Plant 13,000Office Equipment 33,000Accumulated Depreciation at 1 January 2020 Office Equipment 8,000Receivables 198,000Payables 52,000Sales…
Question no 1 HnH Solutions acquired a machine by making the following payments: Net cash price Rs. 116,000 including 16% Sales tax; Carriage in Rs. 6,000; Insurance in transit Rs. 5,000; Fire insurance for the next 4 years Rs. 8,000; Installation charges Rs. 20,000; Overhauling Charges (Before Use); Charges to repair the damage caused during installation Rs. 2,000. REQUIRED: Classify the above payments into capital expenditures and revenue expenditures. Give and entry to record acquisition of machine, and another entry to record expenditures by Debiting General Expenses Account.
Question 5 The following year-end unadjusted trial balance is for Jaya as at 31 December 2018. JayaUnadjusted Trial Balance as at 31 December 2018 RM Land 610,000 Building 335,000 Accumulated Depreciation - Building Office Equipment 40,000 Accumulated Depreciation - Equipment Investment in Shares 380,000 Intangible Assets - Licensing Agreement 70,000 Supplies 41,900 Accounts Receivable 106,400 Cash 33,500 Accounts Payable Supplies Payable Long-term Note Payable Jaya , Capital Jaya , Withdrawals 90,000 Services Fees Earned Salaries Expense 213,500 Insurance Expense 25,800 Utilities Expense 32,000 Repair Expense 13,500 Interest Expense 15,000 2,006,600…
Question 5The following balances were extracted from the books of Billion Precision for the yearended 31 December 2020.Dr (RM) Cr (RM)Land 500,000Building 200,000Motor vehicles 120,000Plant and machinery 70,000Profit b/f as at 01.01.2020 237,650Capital 438,000Acc depreciation as at 1.1.2020 :-Building 60,000-Motor Vehicles 69,250-Plant & Machinery 40,000Returns 3,600 4,100Revenue 800,000Purchases 400,000Discounts 5,0006Carriage inwards 7,700Opening inventory 52,000Provision for bad debts 2,000Trade receivables / Trade payable 66,000 43,200Advertising 18,000Staff training cost 4,000Bad debts 12,500Motor expenses 27,000Rental 90,000Bank 7,600Wages and salaries 126,0001,701,800 1,701,800Additional information:i.i. The provision for bad debts should be 4% of trade receivables.ii. Depreciation is to be charged as follows:-Buildings 2% on cost.-Plant and machinery 20% on cost.-Vehicles 25% on cost.iii. The closing inventories is valued at RM57,000.Required:a. Prepare the Statement of…
Question 2 20X6: Jane produced the following trial balance as at 30 June 20x6 $000 $000 Land at cost 2,160 Building at cost 1,080 Plant and equipment at cost 1,728 Intangible assets 810 Accumulated depreciation-30.6.20x5 Building 432 Plant and equipment 504 Interim dividend paid 108 Receivable and payable 585 Cash and bank balance 41.4 Inventory as at 30.6.20x6 586.8 Taxation 14.4 Deferred tax 37.8 Distribution cost 529.2 Administrative expenses 946.8 Retained earning b/f 891 Sales revenue 9480.6 Cost of sales 5909.4 Ordinary share of 50p each 2160 Share premium account 432 The following information is available: 1) A revaluation of the Land and Buildings on | July 20X5 resulted in an increase of £3,240,000 in the Land and £972,000 in the Buildings. This has not yet…
Question 2 20X6: Jane produced the following trial balance as at 30 June 20x6 $000 $000 Land at cost 2,160 Building at cost 1,080 Plant and equipment at cost 1,728 Intangible assets 810 Accumulated depreciation-30.6.20x5 Building 432 Plant and equipment 504 Interim dividend paid 108 Receivable and payable 585 Cash and bank balance 41.4 Inventory as at 30.6.20x6 586.8 Taxation 14.4 Deferred tax 37.8 Distribution cost 529.2 Administrative expenses 946.8 Retained earning b/f 891 Sales revenue 9480.6 Cost of sales 5909.4 Ordinary share of 50p each 2160 Share premium account 432 The following information is available: 1) A revaluation of the Land and Buildings on | July 20X5 resulted in an increase of £3,240,000 in the Land and £972,000 in the Buildings. This has not yet…