Problem 24-5 (IFRS) At the beginning of current year, Apple Company purchased a plating machine for P5,400,000. The entity received a government grant of P400,000 toward this capital cost. The machine is to be depreciated on a 20% reducing balance basis over 10 years. The estimated residual value is P200,000. Required: Prepare journal entries for the current year, assuming the grant is accounted for as deferred income and deduction from asset. Problem 24-6 (IAA) Zephyr Company is provided a grạnt by a foreign governme for the purpose of acquiring land for a building site. grant is a zero-interest loan for 5 years evidenced by - promissory note. The loan was granted on January 1, 2020 for P8,000;000. The market rate of interest is 6%. The present value of 1 for five periods at 6% is .7473. Required: Prepare journal entries for 2020 and 2021.

Problem 24-5 (IFRS) At the beginning of current year, Apple Company purchased a plating machine for P5,400,000. The entity received a government grant of P400,000 toward this capital cost. The machine is to be depreciated on a 20% reducing balance basis over 10 years. The estimated residual value is P200,000. Required: Prepare journal entries for the current year, assuming the grant is accounted for as deferred income and deduction from asset. Problem 24-6 (IAA) Zephyr Company is provided a grạnt by a foreign governme for the purpose of acquiring land for a building site. grant is a zero-interest loan for 5 years evidenced by - promissory note. The loan was granted on January 1, 2020 for P8,000;000. The market rate of interest is 6%. The present value of 1 for five periods at 6% is .7473. Required: Prepare journal entries for 2020 and 2021.

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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