Problem Solving: Solve the following. Show your solutions in good form.Problem 1: Susan Company experienced the ff. transaction during the current year.1. Purchased machinery for P500, 000 cash.2. Purchased land and building for P5,500, 000 cash, including an appraiser's fee of P100,000.An appraisal indicated fair value as follows.Land2,000,0007 3,000,0005,000,000Building3. Invested in 5,000 shares of another entity at P100 per share. Subsequently, Susan Companyexchanged the 5,000 shares for delivery equipment.At the time of exchange, the share is quoted at 120 and the equipment has a list price ofP680,000. Motor vehicle registration has paid in the amount of P3,000.4. A certain equipment was donated by a shareholder to Susan Company.An independent appraisal of the equipment placed the fair value at P1,000,000 and the residualvalue at P100,000. Attorney's fees and other legal expenses amounted to P25,000.5. Land and building acquired by issuing 60,000 shares of P100 par value.The share is quoted at P150 on the date of exchange and the asset acquired had the ff. fairvalue:2,000,0005,000,000Required: Prepare all the indicated entries to record the asset acquisition.LandBuilding

The question is based on the concept of Financial Accounting.

Answered: Problem 1: Susan Company experienced…

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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Problem 1: Susan Company experienced the ff. transaction during the current year. 1. Purchased machinery for P500, 000 cash. 2. Purchased land and building for P5,500, 000 cash, including an appraiser's fee of P100,000. An appraisal indicated fair value as follows. Land 2,000,000