Direction: Prepare what is asked. 1. Y Agency held a financial asset at fair value through surplus or deficit worth P200,000. The agency also paid a P5,000 transaction cost. Required: Prepare the entries to be made by the agency. 2. Assume instead that Y Agency held a financial asset other than fair value through surplus or deficit, for example, an investment in foreign treasury bonds. Required: Prepare the entries to be made by the agency. 3. An agency purchased a threshing machine on account at P250,000, with credit terms of 2/10, n/30. Assume a 2% withholding tax. Required: Prepare the entries to be made by the agency: • At the date of acquisition. • At the date of payment, assuming the agency pays within the discount period. • At the date of payment, assuming the agency pays beyond the discount period.

Direction: Prepare what is asked. 1. Y Agency held a financial asset at fair value through surplus or deficit worth P200,000. The agency also paid a P5,000 transaction cost. Required: Prepare the entries to be made by the agency. 2. Assume instead that Y Agency held a financial asset other than fair value through surplus or deficit, for example, an investment in foreign treasury bonds. Required: Prepare the entries to be made by the agency. 3. An agency purchased a threshing machine on account at P250,000, with credit terms of 2/10, n/30. Assume a 2% withholding tax. Required: Prepare the entries to be made by the agency: • At the date of acquisition. • At the date of payment, assuming the agency pays within the discount period. • At the date of payment, assuming the agency pays beyond the discount period.

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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