Oyears. In Year 5, the machinery has been sold for P280,000. Show the accounting entries for each year up to Year 5 using 8%. You are to show for each year up to 31 Dec Year 5: ) Machinery account ) Provision for depreciation =) Disposal account

Oyears. In Year 5, the machinery has been sold for P280,000. Show the accounting entries for each year up to Year 5 using 8%. You are to show for each year up to 31 Dec Year 5: ) Machinery account ) Provision for depreciation =) Disposal account

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 2EB: Johnson, Incorporated had the following transactions during the year: Purchased a building for...

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Question

2. In a business with financial years ended 31 December. A machine is bought for P420,000 on 1 January Year 1. The estimated useful life is
10years. In Year 5, the machinery has been sold for P280,000. Show the accounting entries for each year up to Year 5 using sinking fund at
18%. You are to show for each year up to 31 Dec Year 5:
(a) Machinery account
(b) Provision for depreciation
(c) Disposal account
(d) Profit and loss account
(e) Balance sheet

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