Homework Help is Here – Start Your Trial Now!
Business
Accounting
1) On December 31, 2022,  an entity replaced the substandard chairs on one of its buses used in its transportation services. The original cost of the replaced chairs is P 1,000,000 and accumulated depreciation of P 400,000. There were no proceeds received in the retirement of the replaced chairs while the cost of replacement chairs is P 1,400,000.  Determine the accounting for replacement. Prepare the journal entries. 2) Maravich Corp. acquired a machine that had a cost of P 130,000 on January 1, 2019. The machine is being depreciated over a 5-year period using straight line method. If the asset is sold for P 30,000 at the end of April 30, 2023, how much is the loss/gain?

1) On December 31, 2022,  an entity replaced the substandard chairs on one of its buses used in its transportation services. The original cost of the replaced chairs is P 1,000,000 and accumulated depreciation of P 400,000. There were no proceeds received in the retirement of the replaced chairs while the cost of replacement chairs is P 1,400,000.  Determine the accounting for replacement. Prepare the journal entries. 2) Maravich Corp. acquired a machine that had a cost of P 130,000 on January 1, 2019. The machine is being depreciated over a 5-year period using straight line method. If the asset is sold for P 30,000 at the end of April 30, 2023, how much is the loss/gain?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

1) On December 31, 2022,  an entity replaced the substandard chairs on one of its buses used in its transportation services. The original cost of the replaced chairs is P 1,000,000 and accumulated depreciation of P 400,000. There were no proceeds received in the retirement of the replaced chairs while the cost of replacement chairs is P 1,400,000.

 Determine the accounting for replacement. Prepare the journal entries.

2) Maravich Corp. acquired a machine that had a cost of P 130,000 on January 1, 2019. The machine is being depreciated over a 5-year period using straight line method. If the asset is sold for P 30,000 at the end of April 30, 2023, how much is the loss/gain?

Expert Solution
steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS