Show the solution in good accounting form Activity 12_ Property, Plant and Equipmentof FinancialThe property, plant and equipment section ofPosition at December 31, 2019 of May-Jo Machine Shop Co. appears as follows:theStatementLandP 800,000BuildingLess: Accumulated depreciationP1,500,000450,000P 700,000400,0001,050,000EquipmentLess: Accumulated depreciationNet property, plant and equipment300,000P2,150,000Because of good business conditions the company decided to move to a moreTransactions on the transfer of location for the year 2020strategic location.are described below:1. The land and building on the old site were sold for P1,700,000 on January 2,2020.2. Equipment with a depreciated value of P150,000 (original cost, P400,000) wassold for Pl120,000 on April 1, 2020.3. New equipment withan invoice price of P300,000 was purchased on May 1,Delivery of the equipment to the site was2020. A 2% discount was allowed.P1,000 paid to the hauler and Pl,500 was spent for installation.4. The land where the company moved in as new site was given by a friend of thecompany President as gift on February 1, 2020.P5,000,000. However, the company paid P250,000 to the B.I.R. for taxes andother costs directly related to the land.5. An old building on the land had to be demolished and the company paidP400,000 on this on February 15, 2020.6. A new equipment with an invoice cost of P150,000 was purchased on OctoberIt had an appraised value of31, 2020.The company paid P100,000 cash and was granted a trade-in allowanceof P50,000 on a used equipment which had a cost of P40,000 and accumulateddepreciation of P15,000.7. May-Jo company constructed a new building at its new site for P2,800, 000 onMay 31,2020.8. Extraordinary repairs on the old equipment amounting to P50,000 were madeafter the equipment have been moved to the new site on June 15, 2020.9. Buildingsequipment have 10 year life with no salvage values.are depreciated using straight-line with 30 year life whileRequired:1) Prepare entries for the year 2020 related to the above transactions.2) How much is the gain or loss on sale and trade-in of property, plant andequipment?2) Prepare the section of the Property, Plant and Equipment for May-Jo MachineShop Co. to be shown in the Statement of Financial Position as of December 31,2020.

The following calculations are to compute the amount of Net PPE for December 2020.

Activity 12_ Property, Plant and Equipment The property, plant and equipment section of the Statement of Financial Position at December 31, 2019 of May-Jo Machine Shop Co. appears as follows: Land P 800,000 Building Less: Accumulated depreciation Equipment Less: Accumulated depreciation Net property, plant and equipment P1,500,000 450,000 P 700,000 400,000 1,050,000 300,000 P2,150,000 Because of good business conditions the company decided to move to a more Transactions on the transfer of location for the year 2020 strategic location. are described below: 1. The land and building on the old site were sold for P1,700,000 on January 2, 2020. 2. Equipment with a depreciated value of P150, 000 (original cost, P400,000) was sold for Pl120,000 on April 1, 2020. 3. New equipment with 2020. A 2% discount was allowed. an invoice price of P300,000 was purchased on May 1, Delivery of the equipment to the site was P1,000 paid to the hauler and P1,500 was spent for installation. 4. The land where the company moved in as new site was given by a friend of the company President as gift on February 1, 2020. P5,000,000. However, It had an appraised value of the company paid P250,000 to the B.I.R. for taxes and other costs directly related to the land. 5. An old building on P400,000 on this on February 15, 2020. 6. A new equipment with an invoice cost of P150,000 was purchased on October 31, 2020. of P50,000 on a used equipment which had a depreciation of P15,000. 7. May-Jo company constructed a new building at its new site for P2,800,000 on May 31,2020. 8. Extraordinary repairs on the old equipment amounting to P50,000 were made after the equipment have been moved to the new site on June 15, 2020. 9. Buildings equipment have 10 year life with no salvage values. the land had to be demolished and the company paid The company paid P100,000 cash and was granted a trade-in allowance cost of P40,000 and accumulated are depreciated using straight-line with 30 year life while Required: 1) Prepare entries for the year 2020 related to the above transactions. 2) How much is the gain or loss on sale and trade-in of property, plant and equipment? 2) Prepare the section of the Property, Plant and Equipment for May-Jo Machine Shop Co. to be shown in the Statement of Financial Position as of December 31, 2020.

Activity 12_ Property, Plant and Equipment The property, plant and equipment section of the Statement of Financial Position at December 31, 2019 of May-Jo Machine Shop Co. appears as follows: Land P 800,000 Building Less: Accumulated depreciation Equipment Less: Accumulated depreciation Net property, plant and equipment P1,500,000 450,000 P 700,000 400,000 1,050,000 300,000 P2,150,000 Because of good business conditions the company decided to move to a more Transactions on the transfer of location for the year 2020 strategic location. are described below: 1. The land and building on the old site were sold for P1,700,000 on January 2, 2020. 2. Equipment with a depreciated value of P150, 000 (original cost, P400,000) was sold for Pl120,000 on April 1, 2020. 3. New equipment with 2020. A 2% discount was allowed. an invoice price of P300,000 was purchased on May 1, Delivery of the equipment to the site was P1,000 paid to the hauler and P1,500 was spent for installation. 4. The land where the company moved in as new site was given by a friend of the company President as gift on February 1, 2020. P5,000,000. However, It had an appraised value of the company paid P250,000 to the B.I.R. for taxes and other costs directly related to the land. 5. An old building on P400,000 on this on February 15, 2020. 6. A new equipment with an invoice cost of P150,000 was purchased on October 31, 2020. of P50,000 on a used equipment which had a depreciation of P15,000. 7. May-Jo company constructed a new building at its new site for P2,800,000 on May 31,2020. 8. Extraordinary repairs on the old equipment amounting to P50,000 were made after the equipment have been moved to the new site on June 15, 2020. 9. Buildings equipment have 10 year life with no salvage values. the land had to be demolished and the company paid The company paid P100,000 cash and was granted a trade-in allowance cost of P40,000 and accumulated are depreciated using straight-line with 30 year life while Required: 1) Prepare entries for the year 2020 related to the above transactions. 2) How much is the gain or loss on sale and trade-in of property, plant and equipment? 2) Prepare the section of the Property, Plant and Equipment for May-Jo Machine Shop Co. to be shown in the Statement of Financial Position as of December 31, 2020.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter7: Operating Assets

Section: Chapter Questions

Problem 63E: Balance Sheet Presentation The following information relates to the assets of Westfield...

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