PROBLEMM how to classify the following items in the statement of financial position due to Darell Company. Darell Co's accountant, the hot and sexy Ms. Munda, is unsure The following data was extracted during the financial statement prcparation of A. UIuJsIJIcation IsSues parell Co.'s diverse activities. Item 1) Factory which due to a decline in activity is no longer required and is now being held for sale in accordance Amount P 500,000 with PFRS 5. 2) Farming land was purchased for its investment potential. Planning permission has not been obtained 800,000 for building constructions of any kind. 3) A factory is in the process of being constructed on behalf of the government. 1,260,000 A building being constructed on behalf of Marky | 4) Company A new office building used by one of its subsidiaries as 1,000,000 5) its head office which was purchased specifically in the 1,200,000 center of Makati City in order to exploit its capital gains _potential. A property that is in the process of construction for 6) sale A property intended for sale in the ordinary course of 950,000 7) business 450,000 8)Owner-occupied properties Buildings occupied by employees, including Ms. Munda 1,600,000 760,000 9) the accountant. The employees pays rent on the building they occupied 10) A building occupied by employees, the employees do not pay market rent on the building they occupied. 11) A building that is leased to a third party under a finance lease 12) A building that is held under mixed use; half of it is owner-occupied and the other half is to earn rentals 13) | A property wherein significant ancillary services are provided to occupants 4) Land and building leased to a subsidiary 240,000 1,110,000 1,720,000 960,000 2,100,000 1,620,000 5) A building leased to an associate under an operating lease 530,000 A new machine leased to another associate under an operating le A machine that is leased bv the. company under lease 420,000
PROBLEMM how to classify the following items in the statement of financial position due to Darell Company. Darell Co's accountant, the hot and sexy Ms. Munda, is unsure The following data was extracted during the financial statement prcparation of A. UIuJsIJIcation IsSues parell Co.'s diverse activities. Item 1) Factory which due to a decline in activity is no longer required and is now being held for sale in accordance Amount P 500,000 with PFRS 5. 2) Farming land was purchased for its investment potential. Planning permission has not been obtained 800,000 for building constructions of any kind. 3) A factory is in the process of being constructed on behalf of the government. 1,260,000 A building being constructed on behalf of Marky | 4) Company A new office building used by one of its subsidiaries as 1,000,000 5) its head office which was purchased specifically in the 1,200,000 center of Makati City in order to exploit its capital gains _potential. A property that is in the process of construction for 6) sale A property intended for sale in the ordinary course of 950,000 7) business 450,000 8)Owner-occupied properties Buildings occupied by employees, including Ms. Munda 1,600,000 760,000 9) the accountant. The employees pays rent on the building they occupied 10) A building occupied by employees, the employees do not pay market rent on the building they occupied. 11) A building that is leased to a third party under a finance lease 12) A building that is held under mixed use; half of it is owner-occupied and the other half is to earn rentals 13) | A property wherein significant ancillary services are provided to occupants 4) Land and building leased to a subsidiary 240,000 1,110,000 1,720,000 960,000 2,100,000 1,620,000 5) A building leased to an associate under an operating lease 530,000 A new machine leased to another associate under an operating le A machine that is leased bv the. company under lease 420,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
ACCOUNTING FOR INVESTMENT PROPERTY.
PROBLEM 1.
PLEASE ANSWER AND SHOW SOLUTION
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education