The trial balance of ABC Enterprises on December 31, 2016 shows P350,000 as the unaudited balance of the Machinery account. On April 1, 2016, a Jacuzzi machine costing P40,000 with accumulated depreciation of P30,000 was sold for P20,000, which proceeds was credited to the Machinery account. On June 30, 2016, a Goulds machine, costing P50,000 and with accumulated depreciation of P22,000 was traded in for a new Pioneer machine with an invoice price of P100,000. The cash paid of P90,000 for the Pioneer machine (100,000 less trade-in allowance of P10,000 was debited to the Machinery account). Company policy on depreciation, which you accept, provides an annual rate of 10% without salvage value. A full year's depreciation is charged in the year of acquisition and none in the year of disposition. The adjusted balance of the Machinery account at December 31, 2016 is a. P290,000

The trial balance of ABC Enterprises on December 31, 2016 shows P350,000 as the unaudited balance of the Machinery account. On April 1, 2016, a Jacuzzi machine costing P40,000 with accumulated depreciation of P30,000 was sold for P20,000, which proceeds was credited to the Machinery account. On June 30, 2016, a Goulds machine, costing P50,000 and with accumulated depreciation of P22,000 was traded in for a new Pioneer machine with an invoice price of P100,000. The cash paid of P90,000 for the Pioneer machine (100,000 less trade-in allowance of P10,000 was debited to the Machinery account). Company policy on depreciation, which you accept, provides an annual rate of 10% without salvage value. A full year's depreciation is charged in the year of acquisition and none in the year of disposition. The adjusted balance of the Machinery account at December 31, 2016 is a. P290,000

Name: b.P370,000C.P260,000d.P300,000eNone of the aboveAnswer (LETTER ONLY):
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Description: b.P370,000C.P260,000d.P300,000eNone of the aboveAnswer (LETTER ONLY):The correct depreciation expense for this machinery for the year ended December 31, 2016 isa.P37,000b.P29,000C.P30,000d.P26,000e.None of the above The trial balance of ABC Enterpri

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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