Question
In: Accounting
1. On January 1, 2020, Misnomer Company purchased the land with valuable natural ore deposits for...
1. On January 1, 2020, Misnomer Company purchased the land with valuable natural ore deposits for P10,000,000. The residual value of the land was P2,000,000. At the time of purchase, a geological survey estimated a recoverable output of P4,000,000 tons. Early in 2020, roads were constructed on the land to aid in the extraction and transportation of the mined ore at a cost of P1,600,000. In 2020, 500,000 tons were mined and sold. A new survey at the end of 2021 estimated 4,200,000 tons of ore available for mining. In 2021, 800,000 tons were mined and sold. Prepare journal entries for 2020 and 2021 based on the transactions.
Solutions
ekkarill92 answered 1 year agoRelated Solutions
whargo company purchased a valuable technology patent on January 1, 2020 for $425,000. The patent has...
whargo company purchased a valuable technology patent on
January 1, 2020 for $425,000. The patent has a useful life of 21
years and legal life of 17 years. Journalize:
(a) the purchese of the parent for cash on January 1,
2020
(b) Amortization of the patent on december 31, 2020
1. On January 2, 2020, Murphy Company purchased land that cost $410,000, a building on the...
1. On January 2, 2020, Murphy Company purchased land that cost
$410,000, a building on the land that cost $1,450,000, and
equipment that cost $70,000. The building has an estimated useful
life of 29 years. The equipment has an estimated useful life of 7
years.
Required: Prepare the property, plant, and equipment section of
the balance sheet as of December 31, 2020. Note: Use straight-line
depreciation with no salvage value. Murphy Company Balance Sheet
(partial) December 31 Property, Plant, and...
1. On January 1, 2020, Dreamland purchased land for $10,000 and a building for $90,000. The...
1. On January 1, 2020, Dreamland purchased land for $10,000 and
a building for $90,000. The land was paid for with cash. The
building was paid for with $5,000 cash and the remainder was
financed with a 10-year notes payable.
2. Paid the accounts payable balance from 2019.
3. Purchase $500 of supplies on account.
4. Purchased 100 alarm systems (inventory) on account at a cost
of $200 each.
5. Paid $6,000 of advertising expense during the year.
6. Sold...
Topic on: Non-Current Assets Held For Sale On January 1, 2020, Racelle Company purchased land at...
Topic on: Non-Current Assets Held For Sale
On January 1, 2020, Racelle Company purchased land at a cost of
P6,000,000. The entity used the REVALUATION MODEL for this
asset.
The fair value of the land was P7,000,000 on Dec. 31, 2020 and
P8,500,000 on Dec 31, 2021.
On July 1, 2022, the entity decided to sell the land and
therefore classified the asset as held for sale.
The fair value of the land on July 1, 2022 is P7,600,000. The...
Natural Company purchased a new machine for production on January 1, 2014. The company intends to...
Natural Company purchased a new machine for production on
January 1, 2014. The company intends to depreciate it over 5 years
using double-declining balance method. The salvage value is $6,000.
Purchase price $60,000 Sales tax $5,175 Insurance during shipping
$2,600 Installation and testing $2,225 Extended service warranty
$1,200
a) Calculate the cost of the new machine.
b) Prepare the journal entry to record the machine purchase.
c) Prepare the depreciation schedule for the five year
period.
d) Prepare the journal...
Natural Company purchased a new machine for production on January 1, 2014. The company intends to...
Natural Company purchased a new machine for production on
January 1, 2014. The company intends to depreciate it over 5 years
using double-declining balance method. The salvage value is $6,000.
Purchase price $60,000 Sales tax $5,175 Insurance during shippiing
$2,600 Installation and testing $2,225 Extended service warranty
$1,200 a) Calculate the cost of the new machine.
b)
Prepare the journal entry to record the machine
purchase.
c)
Prepare
the depreciation schedule for the five year
period.
Pronghorn Mining Company purchased land on February 1, 2020, at a cost of $996,100. It estimated...
Pronghorn Mining Company purchased land on February 1, 2020, at
a cost of $996,100. It estimated that a total of 51,900 tons of
mineral was available for mining. After it has removed all the
natural resources, the company will be required to restore the
property to its previous state because of strict environmental
protection laws. It estimates the fair value of this restoration
obligation at $93,600. It believes it will be able to sell the
property afterwards for $104,000. It...
Tony and Suzie purchased land costing $500,000 for a new camp in January 2020. Now they...
Tony and Suzie purchased land costing $500,000 for a new camp in
January 2020. Now they need money to build the cabins, dining
facility, a ropes course, and an outdoor swimming pool. Tony and
Suzie first checked with Summit Bank to see if they could borrow
another million dollars, but unfortunately the bank turned them
down as too risky. Undeterred, they promoted their idea to close
friends they had made through the outdoor clinics and TEAM events.
They decided to...
Tony and Suzie purchased land costing $500,000 for a new camp in January 2020. Now they...
Tony and Suzie purchased land costing $500,000 for a new camp in
January 2020. Now they need money to build the cabins, dining
facility, a ropes course, and an outdoor swimming pool. Tony and
Suzie first checked with Summit Bank to see if they could borrow
another million dollars, but unfortunately the bank turned them
down as too risky. Undeterred, they promoted their idea to close
friends they had made through the outdoor clinics and TEAM events.
They decided to...
6. On January 1, 2019, Ginger Company purchased land and a building for a total cash...
6. On January 1, 2019, Ginger Company purchased land and a
building for a total cash price of $6,900,000. Individually, the
land was appraised at $2,250,000 and the building at $5,250,000.
The buildings estimated useful life is 25 years and its estimated
salvage value is $300,000. Required: a. Prepare the journal entry
to record the purchase of land and building on January 1, 2019. b.
What is the 2019 depreciation expense on the building, assuming
that double declining-balance depreciation is...
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