Janrel Company entered into a contract toacquire a new machine for its factory. Themachine, which had a cash price ofP2,000,000 was paid as follows: downpayment, P400,000, note payable in 3 equalannual installments, P1,200,000, 20,000ordinary shares with a par value of P25,000and fair value of P40 per share, P800,00O.Prior to the machine's use, installation cost ofP50,000 was incurred. The machine has anestimated residual value of P100,000. What isthe initial cost of the machine?

The initial cost of the machinery is the total of the price of the purchase price of the machine and…

Answered: Janrel Company entered into a contra…

Janrel Company entered into a contra acquire a new machine for its factory- machine, which had a cash price of P2.000.000 was paid as follows: dow

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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