At the beginning of current year, Apple Company a plating machine for P5,400,000. The entity government grant of P400,000 toward this capita The machine is to be depreciated on a 20% reduci- asis over 10 years. The estimated residual value is
At the beginning of current year, Apple Company a plating machine for P5,400,000. The entity government grant of P400,000 toward this capita The machine is to be depreciated on a 20% reduci- asis over 10 years. The estimated residual value is
At the beginning of current year, Apple Company a plating machine for P5,400,000. The entity government grant of P400,000 toward this capita The machine is to be depreciated on a 20% reduci- asis over 10 years. The estimated residual value is
Pls prepare journal entries for both and show solutions
Transcribed Image Text:Problem 24-5 (IFRS)
At the beginning of current year, Apple Company purchased
a plating machine for P5,400,000. The entity received
government grant of P400,000 toward this capital cost.
a
The machine is to be depreciated on a 20% reducing balance
basis over 10 years. The estimated residual value is P200,000.
Required:
Prepare journal entries for the current year, assuming the
grant is accounted for as deferred income and deduction from
asset.
Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.
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