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On January 1,2020 Versace Co. acquired 25% interest in the ordinary shares of Hayaan Mo Sila Inc. for ₱3,000,000 which reflected book value as of the date The Equipment has a remaining life of five years.
2020 2021
Net income ₱1,000,000 ₱1,500,000
Dividend declared 400,000 700,000
Assume the tax rate 30% and the depreciable asset is an ordinary asset (i.e., not subjected to final tax).
Questions:
Case No. 1: On January 3,2020 Versace Company sold an equipment costing ₱600,000 to Hayaan Mo Sila Company for ₱800,000.
1. Investment income 2020
2. Investment 2021
Case No. 2: On January 3,2020 Hayaan Mo Sila Company sold an equipment costing ₱400,000 to Versace Company for ₱600,000.
3.Investment income in 2020
4. Investment income 2021
On January 1,2020, Jhona Co. acquired 25% interest in the ordinary shares of Eldon Inc. for ₱3,000,000 which reflected book value as of the date. The equipment has a remaining life of five years.
2020 2021
Net income ₱1,000,000 ₱1,500,000
Dividend declared 400,000 700,000
Questions:
Case No. 1: On January 3,2020 Jhona Company sold an equipment costing ₱600,000 to Eldon Company for ₱800,000.
1. Investment income 2020
2. Investment 2021
Case No. 2: On January 3,2020 Eldon Company sold an equipment costing ₱400,000 to Jhona Company in 2020.
3.Investment income in 2020
4. Investment income 2021
On January 1,2020, Drenz Co. acquired 25% interest in the ordinary shares of Josiah Inc. for ₱3,000,000 which reflected book value as of that date. Josiah Company reported net income and paid dividends for 2020 and 2021 as follows:
2020 2021
Net income ₱1,000,000 ₱1,500,000
Dividend declared 400,000 700,000
Questions:
Case No. 1: On November 20,2020, Drenz Company sold inventory costing ₱60,000 to Josiah Co. for ₱110,000, 60% of which was still unsold on December 31,2020.
1. Investment income 2020
2. Investment 2021
Case No. 2: On November 20,2020, Josiah company sold inventory costing ₱70,000 to Drenz Co. for 120,000, 60% of which was still unsold on December 31,2020.
3.Investment income in 2020
4. Investment income 2021
1. In 200A, the company’s sales was P500,000. Its fixed costs amounts to P100,000 per year. In 200B, sales was higher, while profit was P30,000 higher than the 200A figures.
For 200C, the company expects to have sales that is twice as much as the 200A sales. The expected increase in production to meet the sales demand in 200C will not require the company exceed its normal capacity.
Required:
a. What is the company’s contribution margin ratio?
b. How much profit does the company expect to earn in 200C?
c. What is the company’s break-even point in units?
. R. Beesley and A. Stanford each contributed $120,000 to purchase a shared equally.
a) If the business earned a profit of $32,000 after the original payment. What is the profit for each owner? (2 marks)
b) Calculate each owner's profit as a percent of the original contribution.
1. Case Corporation produces cellular phone cases. Each case requires a keypad which it also manufactures at a cost per P20 per unit, inclusive of fixed overhead costs of P5.
Case Corporation needs 50,000 units of this keypad annually. A supplier, Keypad Corp., has offered to sell to Case Corp. Its keypad requirements at P24 per unit. If Case decides to buy the keypads, P2 per unit of the fixed overhead based on the annual estimate could be eliminated, and the facility previously used to produce the keypad could be rented to another company.
a. If Case Corp. outsource the keypads but does not rent the unused facility, it would .
On 01 January 2020, a portion of a company's building was let to a tenant. However, rental of R26 200 was received and recorded for the entire year and included rent for January 2021. The company has a 31 December 2020 year-end. The January 2021 rent includes a 10% increase. Find journal entry that should be processed at year end
The cheapest form of funding for a business
On January 1,2021, Judycel Co. acquired on equipment for ₱500,000 on account with term of 3/10, n/30. Additional costs incurred are as follows:
Freight and insurance ₱15,000
Cost of testing and trial runs 12,000
Proceeds from selling the samples produced during
Testing and trial runs 2,000
Training cost of staff who will operate the equipment 13,000
The account was paid on January 10,2021.
How much is the cost of the equipment?
On January 1,2021, Jimar Co. acquired an equipment by issuing two-year, noninterest bearing note amounting to ₱1,000,000. The prevailing interest rate of the note is 12%.
Questions:
1. Assuming the equipment has cash price equivalent of ₱800,000, how much is the cost of the equivalent?
a. ₱800,000
2. Assuming the equivalent has no cash price equivalent, how much is the cost of the equivalent?
b. ₱797,200
