A third tract of land (site number 623) was acquired for P600,000 and was put on the market for resale. Extensive work was done to a building occupied by townhouse under a lease agreement which was renewed and will expire on December 31, 2022. The total cost of the work was 125,000, which consistent of the following: Painting of ceiling Electrical work 10,000 35,000 Construction of extension to current working area 80,000 Total 125,000 The lessor paid one-half of the costs incurred in connection with the extension to the current working area. During December 2021, costs of P65,000 were incurred to improve leased office space. The related lease will terminate on December 31, 2023 and will not be renewed. A group of new machines was purchased under a royalty agreement which provides for payment of royalties based on units of production for machines. The invoice price of the machines was 75,000, freight costs were 2,000, unloading charges were P1,500 and royalty payments for 2021 were P13,000. Compute for the balance of the following: 1. Land Answer:

A third tract of land (site number 623) was acquired for P600,000 and was put on the market for resale. Extensive work was done to a building occupied by townhouse under a lease agreement which was renewed and will expire on December 31, 2022. The total cost of the work was 125,000, which consistent of the following: Painting of ceiling Electrical work 10,000 35,000 Construction of extension to current working area 80,000 Total 125,000 The lessor paid one-half of the costs incurred in connection with the extension to the current working area. During December 2021, costs of P65,000 were incurred to improve leased office space. The related lease will terminate on December 31, 2023 and will not be renewed. A group of new machines was purchased under a royalty agreement which provides for payment of royalties based on units of production for machines. The invoice price of the machines was 75,000, freight costs were 2,000, unloading charges were P1,500 and royalty payments for 2021 were P13,000. Compute for the balance of the following: 1. Land Answer:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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