Answered: How much is the total carrying amount…

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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How much is the total carrying amount of the property as of June 30, 2021? Show the solutions please.

Transcribed Image Text:development costs on an electronic integrated kitchen appliance. Costs methods. As part of this review, it was decided that a 15% pa reducing (c) On 1 July 2020 Benjo Lopez Co carried out a review of its depreciation (b) On 1 July 2020 fixtures and fittings which had cost P32,000 on 1 July 2018 PROBLEM 23-23 PPE and Intangible Assets (d) During the current year Benjo Lopez Co incurred P96,000 of research and following brought forward information has been collected in readiness for the Benjo Lopez Co is a manufacturer and retailer of electronic equipment and balance policy for fixtures and fittings would now be more appropriate. owns a number of properties from which it operates. Benjo Lopez Co is preparing its draft financial statements for the year ended 30 June 2021 and the following brought forward information has been collected in readiness Co the preparation of information in relation to non-current assets. Depreciation/ Amortization Аccum. Depreciation/ Amortization As at 30 June 2020 Land Cost Method P1,500,000 3,400,000 360,000 290,000 n/a 4% pa straight line 20% pa straight line 10 year life (a) On 1 January 2020 Benjo Lopez Co acquired a piece of land (included above) on which it planned to build a new retail unit. Benjo Lopez Co built the new retail property during the year ended 30 June 2021 and opened it on 30 June 2021 having incurred the following costs during the year: Property Fixtures and fittings Intangible – brand P1,360,000 126,000 101,500 Site preparation costs Construction costs P 90,000 1,200,000 30,000 10,500 7,800 5,200 P 1,343,500 General overheads Staff relocation costs Professional fees Launch event (b) On 1 July 2020 fixtures and fittings which had cost P32,000 on 1 July 20 were sold for cash, generating a profit on disposal of P1,200. On 1 Ap 2021 Benjo Lopez Co acquired new fixtures and fittings for P78,000. balance policy for fixtures and fittings would now be more appropriate.