How much is the purchase price of machinery net of discount

Assignment Help Financial Accounting
Reference no: EM132955479

A portion of the office building of ABC Co. was destroyed by a fire on January 2, 2010. You were able to recover the following information on one of its PPE items:

An entry made on December 31, 2009 on piecemeal realization of Revaluation surplus:

Revaluation Surplus 250,000
Retained Earnings 250,000

Problem 1: information regarding the revaluation of the machinery on January 1, 2009 revealed the Sound Value of the machinery for P7,800,000. The remaining useful life of the asset as of revaluation date is 10 years and the book value of the machinery is actually 5/6 of its acquisition cost. You also found out that the machinery was acquired through credit and a discount of 6% was unintentionally not taken by the management. How much is the purchase price of the machinery net of discount?

Reference no: EM132955479

Questions Cloud

Determine Romagna plc total cost per equivalent unit : Determine Romagna plc's total cost per equivalent unit of production, the cost of goods transferred to the packaging department, and the cost of the ending work
Calculate the annual depreciation expense : Calculate the annual depreciation expense (2019 & 2020) for the tractor, using the straight-line method and Reducing balance method
What is the present value of money : Question - What is the present value of money? How is it calculated? Why is it important for business planning
Explain the general basics of the regulatory rules : Discuss the general basics of the regulatory rules applying to insider trading and its implications and address the Ethical implications.
How much is the purchase price of machinery net of discount : The remaining useful life of the asset as of revaluation date is 10 years. How much is the purchase price of the machinery net of discount?
What is dyer current stock price : A company is expected to pay a dividend of $1.15 per share at the end of the year, and that dividend is expected to grow at a constant rate of 6.00% per year in
What is the amount of depletion for collins company : Extraction began in 2010 recovering 25,000 tons of mineral resources which were sold. What is the amount of depletion for 2010?
What is the bond nominal yield to call : The bond has a 6.50% nominal yield to maturity, but it can be called in 6 years at a price of $1,050. What is the bond's nominal yield to call?
Prepare a t-account for michael lucas : Make the company's closing entries. Include explanations. Prepare a T-account for Michael Lucas, Capital. What is the ending Capital balance at June 30, 2020

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd