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On January 1,2020, Kendall Inc. began construction of an automated cattle feeder system. The system was finished and ready for use on September 30,2021. Expenditures on the project were as follows:
January 1,2020 200,000
September 1,2020 300,000
December 31,2020 300,000
March 31,2021 300,000
September 30,2021 200,000
Kendall borrowed ₱750,000 on a construction loan at 12% interest on January 1,2020. This loan was outstanding throughout the construction period. The company had ₱4,500,000 in 9% bonds payable outstanding in 2020 and 2021.
Questions:
Based on the above data, answer the following:
1. Average accumulated expenditures for 2020 was
2. Interest capitalized for 2020 was
3. Average accumulated expenditures for 2021 was
Interest capitalized for 2021 was
On February 1, 2021 Marianne Co. purchased the right to remove gravel from an old rock quarry. The gravel is to be sold as roadbed for highway construction. The cost of the quarry rights was ₱164,000, with estimated salable rocks of 20,000 tons. During 2021, Marianne loaded and sold 4,000 tons of rock and estimated that 16,000 tons remained at December 31, 2021. At January 1,2022, Marianne estimated that 20,000 tons still remained. During 2022, Marianne loaded and sold 8,000 tons.
Questions:
Based on the above data, answer the following:
1. How much is the depletion in 2021?
In 2021, Junica Co. acquired land costing ore for a total cost of ₱4,000,000 Exploration costs amounted to ₱6,000,000 while intangible development cost amounted to ₱5,000,000. Movable tangible equipment costs amounted to ₱1,000,000. Geologist estimated that the total units estimated to be extracted is 4,000,000. It is estimated that 400,000 units will be extracted to be year during the useful life of the wasting assets.
The movable equipment has a useful life of 10 years while the immovable equipment has an estimated useful life of 5 years.
Actual units extracted during 2021 are 500,000 units.
Questions:
Based on the above data, answer the following:
1. How much is the depletion in 2021?
2. How much is the 2021 depreciation of the movable equipment?
3. How much is the 2021 depreciation of the immovable equipment?
In 2018, Lyra Co. acquired land containing ore for a total cost of ₱60,000,000 immovable tangible equipment costs totaled ₱5,000,000. Geologist estimate that the total units estimated to be extracted is ₱2,000,000. It is estimated that 200,000 units will be extracted each year during the useful life of the wasting assets. The immovable equipment has a useful life of 15 years.
Actual units extracted during the years 2018 to 2020 totaled 620,000 units. There were no units extracted during 2021 because of employee strike.
In 2022, the company resumed operations and there were 150,000 units extracted.
Questions:
Based on the above data, answer the following:
1. How much is the 2021 depreciation of the immovable equipment?
2. How much is the 2022 depreciation of the immovable equipment?
In 2019, ESERAH purchased property with mineral resources for ₱28,000,000. The property had a residual value of ₱5,000,000. However, ESERAH is required to restore the property to the original condition at a discounted amount of ₱2,000,000.
In 2019, ESERAH spent ₱1,000,000 in development cost and ₱3,000,000 in building. In 2021, an amount of ₱4,000,000. Was spent for additional development on the mine.
Production began in 2020 and the tons extracted totaled 3,000,000 in 2020 and 2,500,000 in 2021. The estimated remaining tons to be extracted totaled 7,000,000 and 3,500,000 at the end of 2020 and 2021, respectively.
Questions:
Based on the above data, answer the following:
1. What is the depletion base?
2. What amount of depletion should be recognized in 2020?
3. What amount of depletion should be recognized in 2021?
4. What is the carrying amount of the mineral property on December 31,2021?
1. Discuss briefly the substantive testing/audit procedures in property, plant and equipment.
2. Differentiate full PFRS and PFRS for SME’s
3. Summarize audit assertions and audit objectives and audit procedures in all the accounts we discussed.
Received a loan from ABC Bank for R30 00 Analyse this in accounting equation
Which one of the following statements correctly describes the purpose of the Advocates journal?
A company has a pre_tax operating income of $150,000 if the tax rate is 400% what is the company's after-tax income?
Which one of the following alternatives is correct?
- A. Since partnerships are not governed by a law requiring that IFRS be applied, it is not possible to introduce a standardised accounting procedure according to which changes in the ownership structure of partnerships ought to be recorded.
- B. Since a partnership is a legal entity, the ownership of a partnership is vested in the partners, and not in the partnership.
- C. From the legal perspective, the activities of a dissolved and a subsequent new partnership are not separately accounted for and reported on.
- D. When a change in the ownership structure of a partnership occurs, a new partnership agreement is entered into by the new partners which causes the existing partnership to continue with its business operations.
- E. The retirement of a partner from a partnership does not require the calculation of a new profit-sharing ratio but a simple reallocation of a retired partner’s share.
