On January 1, 1978, the purchasing engineer of JJ Hernandez Cement Co. purchased a new machine at a cost of Php. 140,000.00. Depreciation has been computed by the straight-line method based on an estimated useful life of five years and residual scrap value of Php. 12,800.00. On January 2, 1981, extraordinary repairs ( which were almost equivalent to a rebuilding of the machinery) were performed at a cost of Php. 30,400.00. Because of the thorough going nature of these repairs, the normal life of the machinery was extended materially. The revised estimate of useful life was four years from January 1, 1981. Determine the annual provisions for depreciation for the years 1978 to 1980 and

On January 1, 1978, the purchasing engineer of JJ Hernandez Cement Co. purchased a new machine at a cost of Php. 140,000.00. Depreciation has been computed by the straight-line method based on an estimated useful life of five years and residual scrap value of Php. 12,800.00. On January 2, 1981, extraordinary repairs ( which were almost equivalent to a rebuilding of the machinery) were performed at a cost of Php. 30,400.00. Because of the thorough going nature of these repairs, the normal life of the machinery was extended materially. The revised estimate of useful life was four years from January 1, 1981. Determine the annual provisions for depreciation for the years 1978 to 1980 and

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter19: Accounting For Plant Assets, Depreciation, And Intangible Assets

Section: Chapter Questions

Problem 1AFE

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