Problem 27-4 (ACP) Happy Company owned a power plant which consisted of the following assets all acquired at the beginning of current year Residual Useful life Cost value in years 6,100,000 2,550,000 1,030,000 100,000 50,000 30,000 20 Building Machinery Equipment 10 Required: a. Compute the composite rate. b. Compute the composite life. c. Prepare journal entry to record the depreciation for the current year following the composite method. d. Prepare journal entry to record the retirement of the machinery at the end of the fifth year assuming the proceeds from retirement amount to P40,000. e. Prepare journal entry to record the depreciation for the sixth year following the composite method.

Problem 27-4 (ACP) Happy Company owned a power plant which consisted of the following assets all acquired at the beginning of current year Residual Useful life Cost value in years 6,100,000 2,550,000 1,030,000 100,000 50,000 30,000 20 Building Machinery Equipment 10 Required: a. Compute the composite rate. b. Compute the composite life. c. Prepare journal entry to record the depreciation for the current year following the composite method. d. Prepare journal entry to record the retirement of the machinery at the end of the fifth year assuming the proceeds from retirement amount to P40,000. e. Prepare journal entry to record the depreciation for the sixth year following the composite method.

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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