P8,000,000 from a local government to be used in constructing a PROBLEM 3: EXERCISE On January 1, 20x1, POLICE POWER Co. received caoh P8,000,000 from a local government to be used in constructing building. The construction was completed on December 31, 20 for a total cost of P20,000,000. The building will be depreciated using the straight line method over 20 years. Requirements: a. Provide the journal entries in 20x1 to 20x3 using (i) gross presentation and (ii) net presentation. b. Prepare a partial comparative statement of financial position and a partial comparative statement of profit or loss for 20x3, 20x2 and 20x1 using (i) gross presentation and (ii) net presentation.

P8,000,000 from a local government to be used in constructing a PROBLEM 3: EXERCISE On January 1, 20x1, POLICE POWER Co. received caoh P8,000,000 from a local government to be used in constructing building. The construction was completed on December 31, 20 for a total cost of P20,000,000. The building will be depreciated using the straight line method over 20 years. Requirements: a. Provide the journal entries in 20x1 to 20x3 using (i) gross presentation and (ii) net presentation. b. Prepare a partial comparative statement of financial position and a partial comparative statement of profit or loss for 20x3, 20x2 and 20x1 using (i) gross presentation and (ii) net presentation.

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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