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    Conceptual Framework

    Uploaded by

    Josua Pagcaliwagan
    The document discusses determining the value in use of an asset and provides financial information from Minnie Company's trial balance on December 31, 2012. It notes that the 6% note was refinanced on January 14, 2013 and the 8% note includes a provision allowing refinancing, which occurred on January 15, 2013. It asks what amount should be reported as noncurrent liabilities in the balance sheet as of December 31, 2012.

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    Conceptual Framework

    Uploaded by

    Josua Pagcaliwagan
    411 views9 pages
    The document discusses determining the value in use of an asset and provides financial information from Minnie Company's trial balance on December 31, 2012. It notes that the 6% note was refinanced on January 14, 2013 and the 8% note includes a provision allowing refinancing, which occurred on January 15, 2013. It asks what amount should be reported as noncurrent liabilities in the balance sheet as of December 31, 2012.

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    The document discusses determining the value in use of an asset and provides financial information from Minnie Company's trial balance on December 31, 2012. It notes that the 6% note was refinanced on January 14, 2013 and the 8% note includes a provision allowing refinancing, which occurred on January 15, 2013. It asks what amount should be reported as noncurrent liabilities in the balance sheet as of December 31, 2012.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    411 views9 pages

    Conceptual Framework

    Uploaded by

    Josua Pagcaliwagan
    The document discusses determining the value in use of an asset and provides financial information from Minnie Company's trial balance on December 31, 2012. It notes that the 6% note was refinanced on January 14, 2013 and the 8% note includes a provision allowing refinancing, which occurred on January 15, 2013. It asks what amount should be reported as noncurrent liabilities in the balance sheet as of December 31, 2012.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    You are on page 1of 9

    Determining the value in use of an asset may be practical or useful under the following

    applications:
    Value in use and fulfilment value are determined as follows:

    The difference between the income and the expense is the margin resulting from what
    activity of a corresponding liability?
    Value in use relates to the following act regarding an asset

    The accounts and balances below were taken from Minnie Company’s trial balance on
    December 31, 2012. All appropriate adjusting entries have been made.
    Cash overdraft 50,000
    Accounts payable  and accrued expenses 80,000
    Current tax payable 120,000
    6% note; due date 2/1/13 170,000
    8% note; due date 2/1/13 210,000
    Deferred tax liability 270,000
    8% serial bonds, P50,000 maturing 200,000
    annually
    Provision for employee benefits 120,000
    Dividends payable (distributable) 60,000
    5%  loan payable – December 31, 2016 1,000,000
    Additional information in relation to the reported liabilities:
     The 6% note was refinance on January 14, 2013, in which Minnie Company and BDO
    Financial signed a new loan facility that expires in three years.
     The 8% note includes a provision that grants Minnie Company full discretion to refinance
    the obligation. On January 15, 2013, Minnie Company and MBTC Financial signed a new
    loan facility that expires in three years 

    The amount reposted as current liabilities in the December 31, 2012 balance


    sheet
    The accounts and balances below were taken from Minnie Company’s trial balance on
    December 31, 2012. All appropriate adjusting entries have been made.
    Cash overdraft 50,000
    Accounts payable  and accrued expenses 80,000
    Current tax payable 120,000
    6% note; due date 2/1/13 170,000
    8% note; due date 2/1/13 210,000
    Deferred tax liability 270,000
    8% serial bonds, P50,000 maturing 200,000
    annually
    Provision for employee benefits 120,000
    Dividends payable (distributable) 60,000
    5%  loan payable – December 31, 2016 1,000,000
    Additional information in relation to the reported liabilities:
     The 6% note was refinance on January 14, 2013, in which Minnie Company and BDO
    Financial signed a new loan facility that expires in three years.
     The 8% note includes a provision that grants Minnie Company full discretion to refinance
    the obligation. On January 15, 2013, Minnie Company and MBTC Financial signed a new
    loan facility that expires in three years 

     
    The amount reported as noncurrent liabilities in the December 31, 2012 income
    statement
    An entity must disclose comparative information for - the previous comparable period for
    all amounts reported, and for all narrative and descriptive information when it is relevant to an
    understanding of the current period’s financial statements
    ager Company sold some of its plant assets during 2018. The original cost of the plant assets was $900,000 and the accumulated
    depreciation at date of sale was $840,000. The proceeds from the sale of the plant assets were $90,000. The information
    concerning the sale of the plant assets should be shown on Hager's statement of cash flows (indirect method) for the year ended
    December 31, 2018, as a(n) subtraction from Profit of P30,000 and a P90,000 increase in cash
    flows from investing activities.
    Napier Co. provided the following information on selected transactions during
    2018: 

    Purchase of land by issuing bonds $1,000,000


    Proceeds from issuing bonds 3,000,000
    Purchases of inventory 3,800,000
    Purchases of treasury stock 600,000
    Loans made to affiliated corporations 1,400,000
    Dividends paid to preferred stockholders 400,000
    Proceeds from issuing preferred stock 1,600,000
    Proceeds from sale of equipment 300,000
    The net cash provided by financing activities during 2018 is?
    Which of the following is the proper time period in which to record a change in
    accounting estimates

    Which of the following is not a justifications for a change in depreciations method?

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