How much should be recorded as the purchase price of the individual PPE items: For items 18 to 22, identify the amount to be included as Equipment 18. Payment for injuries to third‐parties not covered by insurance – P200,000 19. Freight amounted to P50,000 and freight insurance amounted to P5,000. 20. Site preparation of P100,000 and installment cost of P75,000. 21. Test run cost which includes P10,000 materials, P15,000 direct labor cost, P1,000 allocated supervisor’s salary and other overhead cost of P5,000. The good produced was sold for P30,000. 22. Value‐added tax amounting to P100,000 23. Import tax of P30,00
How much should be recorded as the purchase price of the individual PPE items: For items 18 to 22, identify the amount to be included as Equipment 18. Payment for injuries to third‐parties not covered by insurance – P200,000 19. Freight amounted to P50,000 and freight insurance amounted to P5,000. 20. Site preparation of P100,000 and installment cost of P75,000. 21. Test run cost which includes P10,000 materials, P15,000 direct labor cost, P1,000 allocated supervisor’s salary and other overhead cost of P5,000. The good produced was sold for P30,000. 22. Value‐added tax amounting to P100,000 23. Import tax of P30,00
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
How much should be recorded as the purchase price of the
individual PPE items:
For items 18 to 22, identify the amount to be included as
Equipment
18. Payment for injuries to third‐parties not covered by
insurance – P200,000
19. Freight amounted to P50,000 and freight insurance
amounted to P5,000.
20. Site preparation of P100,000 and installment cost of
P75,000.
21. Test run cost which includes P10,000 materials, P15,000
direct labor cost, P1,000 allocated supervisor’s salary and
other overhead cost of P5,000. The good produced was sold
for P30,000.
22. Value‐added tax amounting to P100,000
23. Import tax of P30,00
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