Reference no: EM132947798
Questions -
Q1. BOUGAINVILLEA Company acquired a building on January 1, 2017 at a cost of 20,000,000. The building had a useful life of six years and residual value of 2,000,000. The building was revalued on January 1, 2020 and the revaluation revealed replacement cost of 30,000,000, residual value of 4,000,000 and revised useful life of 8 years from the date of acquisition. What is the revaluation surplus on January 1, 2020?
Q2. On August 31, 2019, CAMELLIA Company purchased a new machinery for 540,000. The machinery has an estimated useful life of 5 years and depreciation is computed using the SYD method. Estimated salvage value of the machine is 60,000. What is the total accumulated depreciation on December 31, 2020?
Q3. On August 31, 2019, CAMELLIA Company purchased a new machinery for 540,000. The machinery has an estimated useful life of 5 years and depreciation is computed using the SYD method. Estimated salvage value of the machine is 60,000. If CAMELLIA decides to change its depreciation method to straight-line at the start of 2021, what is the depreciation expense for the year ended December 31, 2021?
Q4. DAFFODIL Company had the following transactions pertaining to its new office building: Purchase price of land -1,200,000; Legal fees for contracts to purchase land -140,000; Architect's fee -256,000; Demolition of old building on site -315,000; Sale of scrap from old building -71,000; Construction cost of new building (fully completed) -2,450,000; Fire insurance policy on the newly constructed building for the whole year starting on the day it was completed -250,000. At what amount should the building be shown in DAFFODIL's statement of financial position of?
Q5. On July 1, 2020, FREESIA Company purchased the rights to a mine for 13,200,000, of which 1,200,000 was allocable to the land. Estimated reserves were 1,500,000 tons. The entity expects to extract and sell 25,000 tons per month. The entity purchased mining equipment on July 1, 2020 for 9,500,000. The mining equipment had a useful life of eight years. However, after all the resources are removed, the equipment will be of no use and will be sold for 500,000. What is the depletion for 2020?
Q6. On July 1, 2020, FREESIA Company purchased the rights to a mine for 13,200,000, of which 1,200,000 was allocable to the land. Estimated reserves were 1,500,000 tons. The entity expects to extract and sell 25,000 tons per month. The entity purchased mining equipment on July 1, 2020 for 9,500,000. The mining equipment had a useful life of eight years. However, after all the resources are removed, the equipment will be of no use and will be sold for ?500,000. What is the depreciation for 2020?
Q7. For the year ended, December 31, 2020, GERBERA Company estimated its allowance for uncollectible accounts using the year-end aging of accounts receivable. The following data are available: Allowance for uncollectible accounts, 1/1/20 -56,000; Provision for uncollectible accounts during 2020 (2% on credit sales of 2,000,000) -40,000; Uncollectible accounts written off, 11/30/20 -46,000; Estimated uncollectible account per aging, 12/31/20 -69,000. After the year-end adjustment, the uncollectible accounts expense for 2020 should be?
Q8. On January 1, 2020, HIBISCUS Company purchased 4,000 of 1,000 face value, 10% bonds of IXORA Company for 4,270,600. The bonds will mature on January 1, 2025 and pay interest semi-annually on January 1 and July 1. Bonds effective interest rate is 8%. HIBISCUS has a business model of collecting all the contractural cash flows related to the instrument. How much should HIBISCUS report as interest income on the bonds of the year ended 2020?
Q9. JASMINE Enterprises' purchases per purchase invoice is 150,000. The purchase discount is 2/10, n/30. Freight is 500, FOB Shipping point collect. The net purchases under the net method is?