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Próblem 1 The property, plant and equipment section of Radiohead Corporation's statement of financial position at December 31, 2019 included the following items: Land Land improvements Building Machinery and equipment P2,500,000 560,000 3,600,000 6,600,000 During 2020, the following date were available to you upon the analysis of the accounts: Cash paid on purchase of land Mortgage assumed on the land bought, including interest at 16% Realtor's commission Legal fees, realty taxes and documentation expenses Amount paid to relocate persons squatting on the property Cost of tearing down an old building on the land Amount recovered from the salvage of the building demolished Cost of fencing the property Amount paid to a contractor for the building erected Building permit fees Excavation expenses Architect's fee Interest that would have been earned had the money used during the period of construction been invested in the money market Invoice cost of machinery acquired Freight, unloading and delivery charges Customs duties and other charges Allowances, hotel accommodations, etc. paid to foreign technicians during installation and test run of machines P10,000,000 16,000,000 1,200,000 200,000 400,000 300,000 600,000 440,000 8,000,000 50,000 250,000 100,000 600,000 8,000,000 240,000 560,000 1,600,000 480,000 Royalty payments on machines purchased (based on units produced and sold) Required: Determine the balances of the following: a) Land b) Land improvements c) Building d) Machinery and equipment e) Total depreciable property, plant and equipment

Próblem 1 The property, plant and equipment section of Radiohead Corporation's statement of financial position at December 31, 2019 included the following items: Land Land improvements Building Machinery and equipment P2,500,000 560,000 3,600,000 6,600,000 During 2020, the following date were available to you upon the analysis of the accounts: Cash paid on purchase of land Mortgage assumed on the land bought, including interest at 16% Realtor's commission Legal fees, realty taxes and documentation expenses Amount paid to relocate persons squatting on the property Cost of tearing down an old building on the land Amount recovered from the salvage of the building demolished Cost of fencing the property Amount paid to a contractor for the building erected Building permit fees Excavation expenses Architect's fee Interest that would have been earned had the money used during the period of construction been invested in the money market Invoice cost of machinery acquired Freight, unloading and delivery charges Customs duties and other charges Allowances, hotel accommodations, etc. paid to foreign technicians during installation and test run of machines P10,000,000 16,000,000 1,200,000 200,000 400,000 300,000 600,000 440,000 8,000,000 50,000 250,000 100,000 600,000 8,000,000 240,000 560,000 1,600,000 480,000 Royalty payments on machines purchased (based on units produced and sold) Required: Determine the balances of the following: a) Land b) Land improvements c) Building d) Machinery and equipment e) Total depreciable property, plant and equipment

FINANCIAL ACCOUNTING
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 The property, plant and equipment section of Radiohead Corporation's statement of financial position at December 31, 2019 included the following items: Land Land improvements Building Machinery and equipment P2,500,000 560,000 3,600,000 6,600,000 During 2020, the following date were available to you upon the analysis of the accounts: Cash paid on purchase of land Mortgage assumed on the land bought, including interest at 16% Realtor's commission Legal fees, realty taxes and documentation expenses Amount paid to relocate persons squatting on the property Cost of tearing down an old building on the land Amount recovered from the salvage of the building demolished Cost of fencing the property Amount paid to a contractor for the building erected Building permit fees Excavation expenses Architect's fee Interest that would have been earned had the money used during the period of construction been invested in the money market Invoice cost of machinery acquired Freight, unloading and delivery charges Customs duties and other charges Allowances, hotel accommodations, etc. paid to foreign technicians during installation and test run of machines Royalty payments on machines purchased (based on units produced and sold) P10,000,000 16,000,000 1,200,000 200,000 400,000 300,000 600,000 440,000 8,000,000 50,000 250,000 100,000 600,000 8,000,000 240,000 560,000 1,600,000 480,000 Required: Determine the balances of the following: a) Land b) Land improvements c) Building d) Machinery and equipment e) Total depreciable property, plant and equipment
Transcribed Image Text:Problem 1 The property, plant and equipment section of Radiohead Corporation's statement of financial position at December 31, 2019 included the following items: Land Land improvements Building Machinery and equipment P2,500,000 560,000 3,600,000 6,600,000 During 2020, the following date were available to you upon the analysis of the accounts: Cash paid on purchase of land Mortgage assumed on the land bought, including interest at 16% Realtor's commission Legal fees, realty taxes and documentation expenses Amount paid to relocate persons squatting on the property Cost of tearing down an old building on the land Amount recovered from the salvage of the building demolished Cost of fencing the property Amount paid to a contractor for the building erected Building permit fees Excavation expenses Architect's fee Interest that would have been earned had the money used during the period of construction been invested in the money market Invoice cost of machinery acquired Freight, unloading and delivery charges Customs duties and other charges Allowances, hotel accommodations, etc. paid to foreign technicians during installation and test run of machines Royalty payments on machines purchased (based on units produced and sold) P10,000,000 16,000,000 1,200,000 200,000 400,000 300,000 600,000 440,000 8,000,000 50,000 250,000 100,000 600,000 8,000,000 240,000 560,000 1,600,000 480,000 Required: Determine the balances of the following: a) Land b) Land improvements c) Building d) Machinery and equipment e) Total depreciable property, plant and equipment
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