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The TGR Company commenced operations on January 1, 2013. The c account is shown below. Date Particulars Debit Crec

The TGR Company commenced operations on January 1, 2013. The c account is shown below. Date Particulars Debit Crec

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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PROBLEM NO. 11 The TGR Company commenced operations on January 1, 2013. The company's machinery account is shown below. Date Jan. 1, 2013 Sept. 30, 2013 Oct. 3, 2013 Dec. 31, 2013 2014 June 30, 2014 Dec. 31, 2014 June 30, 2015 Dec. 31, 2015 Jan. 1, 2016 Dec. 31, 2016 Oct. 1, 2017 Dec. 31, 2017 Purchase Particulars Debit P157,200 120,000 132,000 Purchase on installment Payments from Sept. to Dec. Freight and installation Depreciation Installment payments for acquisition on Sept. 30, 2013 Purchase Depreciation Acquisition - trade in of old machine 150,000 Depreciation Sale Depreciation Sale Depreciation 72,000 6,000 144,000 240,000 A. B. Credit C. D. P97,440 154,752 153,802 71,250 108,791 24,000 82,233 Balance P409,200 481,200 487,200 389,760 533,760 773,760 619,008 769,008 a) On September 30, 2013, a machine was purchased on an installment basis. The list price was P180,000, but 12 payments of P18,000 each were made by the company. Only the monthly payments were recorded in the machinery account starting with September 30, 2013. Freight and installation charges of P6,000 were paid and charged to the machinery account on October 3, 2013. 615,206 543,956 b) On June 30, 2015, a machine was purchased for P240,000, 2/10, n/30, and recorded at P240,000 when paid for on July 5, 2014. 59. What is the correct total depreciation provision for the years 2013-2017? A. P737,400 B. P734,040 C. P728,940 435,165 411,165 328,932 c) On June 30, 2015, the machine acquired for P157,200 was traded for a larger one having a list price of P279,000. Allowance of P129,000 was received on the old machine, the balance of the list price being paid in cash and charged to the machinery account. d) On January 1, 2016, the machine acquired on January 1, 2013 with cost of P132,000 was sold for P75,000. The cost of removal and crating totaled P3,750. e) On October 1, 2017, the machine purchased on January 1, 2013 was sold for P24,000 cash. Assume a 5-year useful life for TGR Company's machinery. 56. What is the total amount of gain on the sale/trade-in of the machinery acquired on January 1, 2013? A. P50,400 B. P40,200 C. P36,450 D. P86,850 57. What is the adjusted balance of the Machinery account on December 31, 2017? A. P694,200 B. P705,000 C. P700,200 D. P703,950 58. What is the adjusted balance of the Accumulated depreciation on December 31, 2017? A. P465,600 B. P457,140 C. P462,240 D. P397,740 D. P669,540 60. The entry to correct the depreciation provision for the years 2013-2017 should include a debit (credit) to Depreciation Expense Retained Earnings P75,807 P61,215 (P18,492) P79,707 P18,492 (P79,707) P75,807 P55,249
Transcribed Image Text:PROBLEM NO. 11 The TGR Company commenced operations on January 1, 2013. The company's machinery account is shown below. Date Jan. 1, 2013 Sept. 30, 2013 Oct. 3, 2013 Dec. 31, 2013 2014 June 30, 2014 Dec. 31, 2014 June 30, 2015 Dec. 31, 2015 Jan. 1, 2016 Dec. 31, 2016 Oct. 1, 2017 Dec. 31, 2017 Purchase Particulars Debit P157,200 120,000 132,000 Purchase on installment Payments from Sept. to Dec. Freight and installation Depreciation Installment payments for acquisition on Sept. 30, 2013 Purchase Depreciation Acquisition - trade in of old machine 150,000 Depreciation Sale Depreciation Sale Depreciation 72,000 6,000 144,000 240,000 A. B. Credit C. D. P97,440 154,752 153,802 71,250 108,791 24,000 82,233 Balance P409,200 481,200 487,200 389,760 533,760 773,760 619,008 769,008 a) On September 30, 2013, a machine was purchased on an installment basis. The list price was P180,000, but 12 payments of P18,000 each were made by the company. Only the monthly payments were recorded in the machinery account starting with September 30, 2013. Freight and installation charges of P6,000 were paid and charged to the machinery account on October 3, 2013. 615,206 543,956 b) On June 30, 2015, a machine was purchased for P240,000, 2/10, n/30, and recorded at P240,000 when paid for on July 5, 2014. 59. What is the correct total depreciation provision for the years 2013-2017? A. P737,400 B. P734,040 C. P728,940 435,165 411,165 328,932 c) On June 30, 2015, the machine acquired for P157,200 was traded for a larger one having a list price of P279,000. Allowance of P129,000 was received on the old machine, the balance of the list price being paid in cash and charged to the machinery account. d) On January 1, 2016, the machine acquired on January 1, 2013 with cost of P132,000 was sold for P75,000. The cost of removal and crating totaled P3,750. e) On October 1, 2017, the machine purchased on January 1, 2013 was sold for P24,000 cash. Assume a 5-year useful life for TGR Company's machinery. 56. What is the total amount of gain on the sale/trade-in of the machinery acquired on January 1, 2013? A. P50,400 B. P40,200 C. P36,450 D. P86,850 57. What is the adjusted balance of the Machinery account on December 31, 2017? A. P694,200 B. P705,000 C. P700,200 D. P703,950 58. What is the adjusted balance of the Accumulated depreciation on December 31, 2017? A. P465,600 B. P457,140 C. P462,240 D. P397,740 D. P669,540 60. The entry to correct the depreciation provision for the years 2013-2017 should include a debit (credit) to Depreciation Expense Retained Earnings P75,807 P61,215 (P18,492) P79,707 P18,492 (P79,707) P75,807 P55,249
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