Reference no: EM132948175

Questions -

Q1. On July 1, 2020, Feela 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?

Q2. Minnie 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?

Q3. For the year ended, December 31, 2020, Vergara 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?

Q4. On January 1, 2020, Rebisco Company purchased 4,000 of 1,000 face value, 10% bonds of Kopi 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%. Rebisco has a business model of collecting all the contractural cash flows related to the instrument. How much should Rebisco report as interest income on the bonds?