Kemp Inc. acquired a new processing machine: Invoice cost P1,800,000 Transportation cost Installation cost 50,000 120,000 The purchase agreement stipulated that if payment is made within 10 days, the entity will receive a 5% discount. However, the entity paid after the discount time had expired. The new entity's main engineer spent two-thirds of his time on the new machine's trial run. The remuneration is P90,000 per month. The company requested for an allowance from the supplier since the machine's performance was below par. A cash allowance of P100,000 was issued by the supplier. The cost of uninstalling the old machine before installing the new unit was P10,000. a. P1,800,000 b. P1,840,000 c. P1,870,000 d. P1,780,000

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Kemp Inc. acquired a new processing machine:
P1,800,000
Invoice cost
Transportation cost
50,000
Installation cost
120,000
The purchase agreement stipulated that if payment is made within 10 days, the entity will receive a 5%
discount. However, the entity paid after the discount time had expired.
The new entity's main engineer spent two-thirds of his time on the new machine's trial run. The
remuneration is P90,000 per month.
The company requested for an allowance from the supplier since the machine's performance was below
par. A cash allowance of P100,000 was issued by the supplier.
The cost of uninstalling the old machine before installing the new unit was P10,000.
a. P1,800,000
b. P1,840,000
c. P1,870,000
d. P1,780,000
Transcribed Image Text:Kemp Inc. acquired a new processing machine: P1,800,000 Invoice cost Transportation cost 50,000 Installation cost 120,000 The purchase agreement stipulated that if payment is made within 10 days, the entity will receive a 5% discount. However, the entity paid after the discount time had expired. The new entity's main engineer spent two-thirds of his time on the new machine's trial run. The remuneration is P90,000 per month. The company requested for an allowance from the supplier since the machine's performance was below par. A cash allowance of P100,000 was issued by the supplier. The cost of uninstalling the old machine before installing the new unit was P10,000. a. P1,800,000 b. P1,840,000 c. P1,870,000 d. P1,780,000
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