EXERCISES-14. The following data for the property and equipment of BINONDO TRADE
ID: 2405206 • Letter: E
Question
EXERCISES-14. The following data for the property and equipment of BINONDO TRADERS as of the end of its current accounting period on December 31, 2007 are available: Building, acquired April 1, 2005, estimated life is 40 years? estimated scrap value is 5% of cost; cost - P5, 000,000. 2. Office Equipment, acquired January 1, 2005, estimated life is estimated scrap value is P5,000; cost P65, 000 3. Furniture and fixtures: acquired January 1, 2005, estimated annual depreciation rate is 10%; no estimated scrap value: cost P70, 000 a. pg. 36Explanation / Answer
Answer - Part -1 Deprec
Computation of Depreciation :
Part - B Journal Entry for Depreciation
Depreciation A/c Dr P182,850
To Accumulated Dep on Building 118750
To Accumulated Dep on Office equipment 12000
To Accumulated Dep on Furniture 14600
To Accumulated Dep on Delivery Truck 37500
Property / Equipment Cost Accumulated Depreciation Balance Jan. 1 2005 Depreciation 2007 Accumulated Depreciation Dec, 31,2007 Book Value Dec. 31 , 2007 Building 50,00,000.00 - 1,18,750.00 3,26,562.50 46,73,437.50 Office equipment 65,000.00 - 12,000.00 36,000.00 29,000.00 Furniture/ Equipment a. 70,000.00 7,000.00 21,000.00 49,000.00 b. 80,000.00 7,600.00 12,666.67 67,333.33 Delivery Truck 5,00,000.00 37,500.00 4,62,500.00 37,500.00Related Questions
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