Crocs Proprietary Limited “Crocs” was incorporated on 1 February 2021. Soon after its incorporation, Crocs entered into an agreement with the municipality to lease a vacant piece of land. As per the lease agreement, Crocs may erect a structure on the land, but the company is obligated to dismantle and remove the structure at the end of its useful life and restore the land to its original state.
The construction of the building, which will house the abattoir operations, started in February 2021. It was completed on 30 April 2021 and recorded in the accounting records with a total cost of R2 670 000.
The following journal entry was recorded on 30 April 2021
DR Property, plant, and equipment 2 670 000
CRPayables 2 670 000
The building was available for use on the same day. The management of Crocs estimated the future dismantling, removal, and restoration costs to be R750 000. An appropriate discount rate (after tax) of 9% was determined.
The estimated useful life of the building is 20 years. Included in the total construction costs of the building (R2 670 000), were the following costs:
• Light steel costing R50 100 which was damaged irreparably during the construction of the building.
• Cost of R30 023 incurred to advertise the date of the opening of the facility on 1 June 2021.
The 4 machines used on the production line, with a total cost of R880 000 were fitted and installed by 1 May 2021 and available for use on the same day. The machines were brought into use on 1 June 2021, on the day of the opening of the facility. The estimated useful life of machinery is 10 years.
On 29 March 2023, the engine of one of the machines sparked and caught alight due to unscheduled loadshedding on that day. The engine was replaced at a cost of R18 000. It was not identified as a significant component at initial recognition. Its estimated useful life is 3 years.
Required:
3.1.1 Critically discuss the accuracy of the initial measurement of the building recorded in the financial records of Crocs (Pty) Ltd for the year ended 30 April 2021. Show all calculations as marks are awarded. ( 10 marks)
3.1.2 Prepare the correcting journals due to your discussion in 3.1.1 for Crocs (Pty) Ltd for the year ended 30 April 2021. ( 5 marks )
3.1.3 Calculate the correct cost of the building.
3.2 Prepare the property, plant and equipment note to the financial statements of Crocs (Pty) Ltd for the year ended 30 April 2023. Show calculations as marks are awarded.The total column is not required. (16 marks)
3.3 Show the value at which property, plant and equipment will be reflected in the ( statement of financial position of Crocs (Pty) Ltd as at 30 April 2023. (2 marks)
Answers
3.1.1 Critically discuss the accuracy of the initial measurement of the building recorded in the financial records of Crocs (Pty) Ltd for the year ended 30 April 2021. Show all calculations as marks are awarded.
To assess the accuracy of the initial measurement of the building, we need to consider the relevant costs and adjust the recorded amount accordingly.
a) Light steel costing R50,100: This cost should be excluded from the initial measurement of the building as it was damaged irreparably during construction. Since it is a non-recoverable cost related to a separate asset, it should not be included in the building cost. Therefore, the building cost needs to be reduced by R50,100.
Adjusted building cost: R2,670,000 - R50,100 = R2,619,900
b) Advertising cost of R30,023: The advertising cost incurred for the opening of the facility is not directly attributable to the construction of the building. It should be expensed separately as a marketing or promotional expense rather than capitalized as part of the building cost. Therefore, it should not be included in the building cost.
Adjusted building cost: R2,619,900
3.1.2 Prepare the correcting journals due to your discussion in 3.1.1 for Crocs (Pty) Ltd for the year ended 30 April 2021.
To correct the initial measurement of the building, the following journal entry should be recorded:
DR Property, plant, and equipment (Building) - R50,100
CR Accumulated depreciation - R50,100
Adjusted building cost: R2,619,900
3.1.3 Calculate the correct cost of the building.
The correct cost of the building is R2,619,900.
3.2 Prepare the property, plant, and equipment note to the financial statements of Crocs (Pty) Ltd for the year ended 30 April 2023. Show calculations as marks are awarded. The total column is not required.
Property, Plant and Equipment Note
Year Ended 30 April 2023
Property, Plant, and Equipment:
Buildings:
Opening balance: R2,619,900
Additions: None
Disposals: None
Depreciation: Accumulated depreciation at the end of the year
Closing balance: Cost - Accumulated depreciation
Machinery:
Opening balance: R880,000
Additions: None
Disposals: None
Depreciation: Accumulated depreciation at the end of the year
Closing balance: Cost - Accumulated depreciation
3.3 Show the value at which property, plant, and equipment will be reflected in the statement of financial position of Crocs (Pty) Ltd as at 30 April 2023.
The value at which property, plant, and equipment will be reflected in the statement of financial position is the net carrying amount, which is the cost of the asset minus accumulated depreciation.
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Related Questions
What elements should an ideal CRR plan include?
Answers
The following components belong in a perfect CRR plan. communication lines that are clear, empathy and understanding, activity that is swift and efficient, Feedback and follow-up Continual development
A CRR report: what is it?The Cyber Resilience Assessment (CRR) is an evaluation of an organisation s resilience or cybersecurity measures based on interviews. Your organization will get knowledge of how to handle cyber risk during both regular operations and during periods of stress levels and catastrophe through the CRR.
What is CRR's emergency response?Your department can use what you already know to reduce hazards in your operational area with the aid of a community reducing risk (CRR) program. CRR employs a wide range of instruments to create a strategy and integrated program aimed at minimizing the occurrence and effects of local risks.
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A woman who weighs approximately 180 pounds has two "double" mixed drinks in one hour. Which of the following is CORRECT?
Answers
The correct option is that she is likely intoxicated.
What happened due to the drinkingThe effect of alcohol consumption can vary depending on factors such as body weight, tolerance, metabolism, and the specific alcoholic beverages consumed.
Given that the woman in question has had two "double" mixed drinks in one hour, it is possible that she may be impaired or experiencing some level of intoxication.
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A woman who weighs approximately 180 pounds has two "double" mixed drinks in one hour. Which of the following is CORRECT?
•
She is impaired
•
She is not intoxicated.
•
She is likely intoxicated.
She is possibly impaired.
LEONE COMPANY Income Statement For Year Ended December 31 Sales Cost of goods sold Finished goods inventory, beginning Cost of goods manufactured Goods available for sale Less: Finished goods inventory, ending Cost of goods sold Gross profit General and administrative expenses Selling expenses Net income $ 84,000 84,000 92.000 $ 3,251,000 $ (8,000) 3,259,000 127.000 603,000 2,529,000
How do you find the cost of goods manufactured?
Answers
The cost of goods manufactured (COGM) is the cost of all the products that a company has manufactured during a period.
How to calculateIt is calculated by adding the beginning finished goods inventory to the total manufacturing costs, and then subtracting the ending finished goods inventory.
In the income statement you provided, the cost of goods manufactured is calculated as follows:
COGM = $92,000 + $3,251,000 - $127,000 = $3,224,000
Therefore, the cost of goods manufactured for Leone Company is $3,224,000.
Here is the formula for calculating COGM:
COGM = Beginning finished goods inventory + Total manufacturing costs - Ending finished goods inventory
The total manufacturing costs include direct materials, direct labor, and manufacturing overhead.
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Thomas is applying for a social services position with the public school system in his district. Why would it be useful for the school principal to check his credit history? To see whether he has school loans To check the balances on his credit cards To check the interest on his student loans To see if he has any neglected child support responsibilities
Answers
Answer:
The reason that it would be useful for the school principal to check Thomas' credit history is:
To see if he has any neglected child support responsibilities .
Explanation:
Generally, employers are restricted from making employment decisions based on a potential employee's credit history. This is why they are not allowed to see the balances or the employee's credit score. However, employers can still lay their hands on important data to ascertain an employee's responsibility to contracted liabilities.
Many firms in the United States file for bankruptcy every year, yet they still continue operating. Why would they do this instead of completely shutting down?
Answers
Answer:
see below
Explanation:
A firm may either opt to shutdown or declare bankruptcy if its making losses. A shutdown will involve ceasing operations and disposing of assets to pay creditors. Declaring bankruptcy shields the business from debt obligations or seizing of assets by its creditors.
Many businesses opt to declare bankruptcy because shutting down is costly. Except for properties, other assets are likely to be liquidated at costs below their book value. With the burden of debts shelved for some time, a business has a chance of bouncing back to profitability. A loss-making firm whose price is above the average variable cost should continue operating.
What is the difference between master budget and Actual result of a business enterprise performance?
A. Total master budget variance
B. Flexible budget variance
C. Activity level variance
D. yield variance
E. None of the above.
Answers
Answer:
B Flexible budget variance
Explanation:
Budget variance can indicate a department's or company's degree of efficiency, since they
emerge from a comparison of what was with and what should have been
The distinction between master budget and Actual result of a business enterprise performance is Flexible budget variance. Thus, option B is correct.
What is Flexible budget variance?The disparities between line items on actual financial statements and those on flexible budgets are referred to as flexible budget variances. Flexible budgets can only be produced at the end of the period, since the real activity level is not accessible before the accounting period concludes.
Budget variance might reflect the efficiency of a department or firm, since it results from a juxtaposition of what was with and what should have been. Flexible budget variance is the difference between the master budget and the actual outcome of a company enterprise's performance. As a result, option B is right.
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The least expensive type of marketing research method is a(n)
Answers
A business issued a 90-day, 5% note for $10,000 to a creditor on account. The company uses a 360-day year for interest calculations. Journalize the entries to record (a) the issuance of the note and (b) the payment of the note at maturity, including interest.
If an amount box does not require an entry, leave it blank or enter 0. When required, round your answers to the nearest dollar.
Answers
Answer and Explanation:
The journal entries are shown below:
Accounts Payable $10,000
To Notes payable $10,000
(Being the issuance of the note is recorded)
Interest expense $125 ($10,000 × 5% × 90 days ÷ 360 days)
Notes payable $10,000
To Cash $10,125
(Being the cash paid is recorded)
These two entries should be recorded for the given transaction
What is market environment
Answers
Answer:
The market environment is the combination of external and internal factors that affect a company's ability to establish a relationship with and serve its consumers.
Explanation:
The internal factors relate to the company itself, such as owners, workers, materials, components, etc.
The external factors are divided into macro and micro components. The macro component is the broad environment which includes societal forces that affect society as a whole. The micro component is task-related, which includes factors that influence the production, manufacturing and distribution of a product or service.
Question 2 (1 point)
Alise works for a life insurance company as a claims agent. She processes insurance
payments for the families of recently deceased persons. What quality might Alise
find helpful in her career?
being artistic and enjoying performing
Opreferring to work with wildlife
liking to create things with her hands
being kind and a good listener
Answers
If the policyholder makes the requisite premium payments, the insurer is obligated to pay the death benefit upon the insured's passing. Premium amounts are influenced, in part, by the likelihood that the insured will pass away before the policy's death benefit is paid by the insurer.
Why do life insurance providers inquire as to whether you have other insurance?Your final life insurance prices will be based on these since the insurers want to know how dangerous you are to insure.
If everyone passes away, how do life insurance companies make money?When a policyholder passes away, the company invests these premiums and utilizes the proceeds to pay claims to the beneficiaries of the policy. The interest and dividends received on the investments made with premiums generate income for the company as well.
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Ernie decides to buy a cupcake from a bakery. While there, he notices that one person mixes the
batter, another person divides the batter into cupcake molds, another person supervises the oven, and a final person puts icing on the cupcakes.
This is an example of
allocation
division of labor
productivity
opportunity cost
Answers
This is an example of division of labor Option(b) is correct.
What is Division of labor?
The Division of labor is the partition of the undertakings in any monetary framework or association so members might practice (specialization). People, associations, and countries are supplied with or obtain specific capacities.
Division of labor joins specialization and the segment of a mind boggling creation task into a few, or many, sub-errands. Its significance in financial matters lies in the way that a given number of laborers can deliver undeniably more result utilizing division of labor contrasted with similar number of laborers each working alone. The best benefit of division of labor is that it increments gigantically the efficiency per specialist. This point can be outlined by the renowned illustration of pin making given by Adam Smith. The course of pin making is separated into 18 unmistakable activities.
Therefore Option(b) is correct.
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The CPI is based on the prices of a carefully selected market
basket of goods, all of which consumers can purchase at a
supermarket.
O True
O False
Answers
The CPI is based on the prices of a carefully selected market basket of goods, all of which consumers can purchase at a supermarket is false.
The CPI is a measure of inflation that tracks the average change over time in the prices paid by urban consumers for a fixed basket of goods and services.
The basket of goods and services included in the CPI represents the typical spending patterns of urban households, but it is not limited to items found in a supermarket. The basket includes a wide range of goods and services, such as housing, transportation, healthcare, education, and recreation, in addition to food and beverages.
The Bureau of Labor Statistics (BLS) in the United States, which calculates the CPI, regularly updates the basket of goods and adjusts their weights based on consumer spending patterns. The BLS collects data from thousands of retail stores, service establishments, and other providers to ensure a representative sample of prices across different regions and types of businesses.
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Hyundai Heavy Industries Co. is one of Korea’s largest industrial producers. According to an article in BusinessWeek Online, the company is not only the world’s largest shipbuilder but also manufactures other industrial goods ranging from construction equipment and marine engines to building power plants and oil refineries worldwide. Despite being a major industrial force in Korea, several of the company’s divisions are unprofitable, or “bleeding red ink” in the words of the article. Indeed, last year the power plant and oil refineries building division recorded a $105 million loss, or 19 percent of its sales. Hyundai Heavy Industries recently hired a new Chief executive officer (CEO) who is charged with the mission of bringing the unprofitable divisions back to profitability. According to BusinessWeek, Hyundai’s profit-driven Chief executive officer (CEO) has provided division heads with the following ultimatum: “…hive off money-losing businesses and deliver profits within a year—or else resign.” Suppose you are the head of the marine engine division and that it has been unprofitable for 7 of the last 10 years. While you build and sell in the competitive marine engines industry, your primary customer is Hyundai’s profitable ship-building division. This tight relationship is due, in large part, to the technical specifications of building ships around engines. Suppose that in our end-of-year report to the Chief executive officer (CEO) you must disclose that while your division reduced costs by 10 percent, it still remains unprofitable. Make an argument to the Chief executive officer (CEO) explaining why your division should not be shut down.
Answers
The argument that would be made to the CEO would be based on the fact that there are complementarities of cost as well as economies of scope.
The argument that is to be madeCost complementarities and economies of scope are likely to occur given the tightly linked marine engine and shipbuilding sectors.
Eliminating marine engine division can actually increase the costs of the shipbuilding division, making the shipbuilding division non-profitable.
Showing the CEO that quadratic multi-product, a cost function presents cost complementarities and an economies of scope, which will occur when a 0andf-aQ1Q2> 0, respectively, and compare the profitability under various scenarios would help this particular argument withstand criticism.
My justification for maintaining the distinction is as follows:
Our division is still growing and needs a few more years to reach its full potential.
Additionally, we introduced new equipment (technology) last year, which helped us cut costs by 10%. This year, thanks to our employees' thorough training on the new platform, we may cut costs even more in the upcoming fiscal year.
And because of the fresh investment in fixed capital, the division has suffered losses. i.e., even while total costs exceed entire revenues. The price of output is higher than the average variable cost.
As a result, the company has every right to continue operating because its AVC is greater than the price.
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Warehouses
WI
W2
W3
S1
14
12
10
Stores
S2
16
14
16
S3
12
10
8
S4
20
8
15
Answers
Based on the given information, it appears to be a representation of quantities of goods stored in warehouses and sold in stores.
The warehouses are labeled as WI, W2, and W3, while the stores are labeled as S1, S2, S3, and S4. The numbers listed below each warehouse represent the quantities of goods stored in each warehouse, while the numbers listed below each store represent the quantities of goods sold in each store.
For example:
- Warehouse WI has 14 units of goods.
- Warehouse W2 has 12 units of goods.
- Warehouse W3 has 10 units of goods.
Similarly, for the stores:
- Store S1 has sold 16 units of goods.
- Store S2 has sold 14 units of goods.
- Store S3 has sold 12 units of goods.
- Store S4 has sold 20 units of goods.
It seems to be a simple inventory representation, showing the quantities of goods stored in each warehouse and sold in each store.
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Which of the following phrases is an example of structural que ?
Answers
Answer:
excuse me but where is the phrase?
Which best describes how consumers may benefit from specialization?
Consumers can only purchase high-quality goods.
Consumers have more price options.
O Consumers receive more sale offers.
O Consumers find products at lower prices.
Answers
In specialization a company have produced the product at different price levels. Consumers have more price options.
What is consumer?A consumer is a person who purchases the goods and or services from the business and is also the ultimate user of the products or services. In specialization the company produces a certain product at many different levels by which they have many price options available which vary according to their customization and quality that can be offered to the consumers and hence the customer can purchase different types of a single product from a single company or Brand.
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What is the main risk for an entrepreneur?
Answers
Entrepreneurs can assume a variety of risks. One of the most prevalent types of risk is market risk, which is the risk an investor takes as a result of market volatility.
Both the business owner and any early investors they enlist should be prepared for this kind of risk when launching a new venture. The use of technology, credibility, and rivalry are further types of risk.
There are some risks involved with implementing new technology into your business operations, such as the possibility that the price of the software or hardware will be higher than the revenue generated by its use. The potential for technological failure, which could lead to data breaches, website outages, and information theft, is another type of technological risk.
The pricing and marketing tactics of competitors, which can be unpredictable and disruptive, present another type of risk.
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What is
one consequence of stagflation?
The economy drastically slows down as
money loses its buying power.
© Producers cannot keep up with consumer interest and raise their prices.
• There are not
enough workers to meet the rising level of production.
• Demand is too high and people spend more money than they should
Answers
One consequence of stagflation is that the economy drastically slows down as money loses its buying power.
What is stagflation?This is when an economy is experiencing high unemployment, coupled with inflation. Here, there is slow economic growth due to increase in prices of goods and services and high rate of people who do not have jobs.
Hence, one consequence of stagflation is that the economy drastically slows down as money loses its buying power.
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Will give brainliest Please help me and write an outline for my alternate answer at the end of this assignment ( btw a shul is a synagogue)
Answers
Explanation:
Sorry about this but problem are not very clear
Which groups of people are eligible for Medicare?
A. People over 65 who live below the poverty level only
B. People over 65 only
C. People who live below the poverty level
D. People over 65 and people with disabilities
Answers
Ignore commissions, taxes, and other imperfections. if a firm substitutes a repurchase for a cash dividend, the primary difference will be an increase in the?
Answers
Ignore commissions, taxes, and other imperfections. If a firm substitutes a repurchase for a cash dividend, the primary difference will be an increase in the total earnings of the firm.
What is the meaning of a Dividend?A dividend is the distribution of profits to shareholders by a corporation. When a corporation makes a profit or has a surplus, it has the option of paying a portion of that profit as a dividend to its shareholders. Any remaining money is confiscated and put back into the business.
A dividend is a gift that a business delivers to its shareholders, whether it be cash or something else. There are numerous ways to distribute dividends, spanning stock dividends, cash payouts, and other formats. A corporation's board of directors decides its dividend, which needs shareholder consent.
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Nieto's Donut Shop is one of many firms in the industry. Nieto's donuts are similar, but not identical to Nieto's competitors. There are very low barriers to entry and Nieto's is currently earning economic losses.
Answers
In order to compete more effectively in the industry, Nieto's should employ several strategy.
What is strategy ?Strategy is a plan of action designed to achieve a long-term or overall aim. It involves setting goals, determining actions to achieve the goals, and mobilizing resources to execute the actions. A strategy describes how the end goal will be achieved by outlining the steps that will be taken to reach it. It involves making decisions about the direction of a business, the resources needed to achieve objectives, and the methods used to monitor progress and evaluate results. Strategy is essential for any organization, as it helps to define the direction in which the business is headed and the methods used to reach its goals.
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What will produce more accurate results when giving a survey?
A. Using the word "frequently" in a question
B. Creating face-to-face interviews
C. Adding boxes to check for answers
D. Creating an open questions
Answers
Answer:
Option B; Creating face-to-face interviews
Explanation:
Research has shown that face-to-face interviews tend to produce more accurate results when giving a survey. So the correct answer is option B.
Mrs. Slayman slays all day. She slays 17 times a second. Approximately how much Slaying does Mrs. Slayman do in a day?
Answers
Mrs. Slayman slays approximately 1,468,800 times in a day.
How to calculate much Slaying does Mrs. Slayman do in a dayIf Mrs. Slayman slays 17 times every second, then in one minute (60 seconds), she slays:
17 times/second * 60 seconds = 1020 times/minute
In one hour (60 minutes), she slays:
1020 times/minute * 60 minutes = 61,200 times/hour
And in one day (24 hours), she slays:
61,200 times/hour * 24 hours = 1,468,800 times/day
Therefore, Mrs. Slayman slays approximately 1,468,800 times in a day.
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a.
Accounting systems that must follow GAAP.
b.
External parties for whom financial accounting
reports are prepared.
C
The role managers play when they are monitoring
day-to-day operations and keeping the company on
track.
d.
Internal decision makers.
Answers
29.
An operation was closed because of an extended electricity failure. When can it
begin service again?
Answers
It can begin service again approval is obtained from the regulatory authority.
When can service startThe duration for an organization to recommence its services after enduring a foremost electricity malfunction relies on several elements, such as the character of the operation, the magnitude of destruction caused by the power cut-off, as well as the accessibility of supplies requisite to renew operations.
For instance, if the establishment is a minor retail outlet, it can possibly resume working once the power source is restituted and various necessary safeguards have been established. Conversely, if the business is a major production concern or informatics server, it could take longer to reinstate tasks due to the meticulously intricate facilities and networks entailed.
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How should sales promotion decisions be made?
Answers
Answer:
By how they work and how they are in their field
Joey has opened a restaurant. He paid a large amount of money up front to get the business started. He only sells products that are licensed by someone else. What type of business opportunity is Joey a part of?
Question 9 options:
1: Franchise
2: Dealership
3: Licensing
4: Network marketing
Answers
Answer:
Franchise
Explanation:
The answer is FRANCHISE
Why are stocks considered a high-risk form of investment?
Answers
Answer:
A.
The value of stocks can rise and fall unpredictably
Explanation:
20: What are some ways you can stay financially literate?