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What is the answer of this with solution and explanation.

What is the answer of this with solution and explanation.

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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What is the answer of this with solution and explanation.

472 Chapter 13 Additional information is discovered as follows: 1) The purchase of the plant included a building and machinery. When the plant was purchased, an appraisal showed that the building was valued at P390,000 and the machinery at P260,000. 2) Depreciation has been recorded each year at 10% of the balance in the account. The 10% was chosen because the property is being depreciated over 10 years for tax purposes. Subsequent investigation indicates that the expected lives at the time of acquisition were: building - 20 years, machinery - 8 years. 3) Each insurance payment was made on January 1 and was for a 2-year policy. 4) The machine that was sold in 2018 had an original cost of P8,000. 5) All purchases and sales of property, plant, and equipment items occurred at the beginning of the year indicated. REQUIRED: Prepare adjusting entries at December 31, 2018, to correct the books assuming they have not been'closed for the year.
Transcribed Image Text:472 Chapter 13 Additional information is discovered as follows: 1) The purchase of the plant included a building and machinery. When the plant was purchased, an appraisal showed that the building was valued at P390,000 and the machinery at P260,000. 2) Depreciation has been recorded each year at 10% of the balance in the account. The 10% was chosen because the property is being depreciated over 10 years for tax purposes. Subsequent investigation indicates that the expected lives at the time of acquisition were: building - 20 years, machinery - 8 years. 3) Each insurance payment was made on January 1 and was for a 2-year policy. 4) The machine that was sold in 2018 had an original cost of P8,000. 5) All purchases and sales of property, plant, and equipment items occurred at the beginning of the year indicated. REQUIRED: Prepare adjusting entries at December 31, 2018, to correct the books assuming they have not been'closed for the year.
13-9. Audit of Property, Plant and Equipment As the first auditor of the AFH Company you discover that the following entries have been made in the property, plant, and equipment account: Property, Plant, and Equipment 2016 2016 Depreciation 63,100 Plant purchased Legal fees Insurance 600,000 7,000 24,000 2017 2017 20,000 Depreciation 68,790 Repairs Addition to building 100,000 2018 2018 Machine sold 5,000 30,000 Repairs Depreciation 74,210 28,000 70,000 Insurance Machine purchased
Transcribed Image Text:13-9. Audit of Property, Plant and Equipment As the first auditor of the AFH Company you discover that the following entries have been made in the property, plant, and equipment account: Property, Plant, and Equipment 2016 2016 Depreciation 63,100 Plant purchased Legal fees Insurance 600,000 7,000 24,000 2017 2017 20,000 Depreciation 68,790 Repairs Addition to building 100,000 2018 2018 Machine sold 5,000 30,000 Repairs Depreciation 74,210 28,000 70,000 Insurance Machine purchased
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