Peach Company purchased a machine for P7, 000, 000 on Jan. 1, 2019 and received a government grant of P1,000,000 toward the capital cost. The machine is to be depreciated or a straight line basis over 5 years and estimated to have a residual value of P500,000 at the ene of this period. Required: Prepare all journal entries for the year 2019 assuming the government grant is accounted for as: 1. Deferred income 2. Pedustion from the sost of the asset
Peach Company purchased a machine for P7, 000, 000 on Jan. 1, 2019 and received a government grant of P1,000,000 toward the capital cost. The machine is to be depreciated or a straight line basis over 5 years and estimated to have a residual value of P500,000 at the ene of this period. Required: Prepare all journal entries for the year 2019 assuming the government grant is accounted for as: 1. Deferred income 2. Pedustion from the sost of the asset
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 14P: Hunter Company purchased a light truck on January 2, 2019 for 18,000. The truck, which will be used...
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