REPTILE COMPANY acquired a machine on January 1, 2018 for P5,250,000. It was to be depreciated using the straight-line method and no residual value was expected at the end of its useful life of 15 years. The fair value which was likewise the asset’s net recoverable amount were as follows: January 1, 2020. P4,975,000; January 1, 2022, P3,872,000; January 1, 2025, P2,600,000 Prepare all the necessary journal entries from 2018 – 2025 Depreciation expense 2018 – 2025 Impairment reported as a loss included in P&L 2020 – 2025

Q: Goliath Company purchased an equipment on January 2, 2017 for P3,000,000. At the date of…

A: Depreciation expense is an expense which is charged on fixed assets over the years the assets is…

Q: On December 31, 2020, ABC Company has an item of machinery with a cost of P 4,500,000 and an…

A: Impairment of assets means reducing the book value  of assets when carrying amount is more than…

Q: On January 1, 2019, TPS Company purchased for P4,800,000 a machine with a useful life of ten years…

A: The depreciation expense for the year 2021 can be calculated as depreciable basis of asset divided…

Q: What is the depreciation expense for 2024?

A: Sum-of-the-years' digits is an accelerated method for determining an asset's expected depreciation…

Q: Dawn Company purchased a machine on January 1, 2018 for P3,000,000. At the date of acquisition, the…

A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…

Q: On January 3, 2019, Soju Co. purchased machinery. The machinery has an estimated useful life of…

A: The depreciation is a decline in the value of tangible assets over their useful life. it is a…

Q: On January 1, 2018, Alan Company purchased an equipment for P8,000,000. The equipment is depreciated…

A: Gain is the amount of money earned on the sale of assets.

Q: SABM Co. acquired a machine on January 1, 2018, at a cost of P120,000. It was expected to have a…

A: Revaluation account is prepared for the revaluing of fixed assets and helps in record the accurate…

Q: On June 30, 2021, Maroon sold for P230,000 a machine acquired in 2018 for P420,000. The accumulated…

A:

Q: On January 1, 2018, an entity purchased a machine for P7,200,000 and depreciated it by the straight…

A: Since there are multiple questions, we will solve first for you. To get the remaining questions…

Q: Broadway Ltd. purchased equipment on January 1, 2019, for $630,000, estimating a seven-year useful…

A: Annual depreciation-Straight line = ($630,000 - $0)/7 Annual depreciation-Straight line = $90,000

Q: On January 1, 2018, an entity purchased a machine for P7,200,000 and depreciated it by the…

A: Annual Depreciation = (Cost of the machine - Salvage value) / Expected life of the assets =…

Q: On January 1, 2017, Jungkook Company purchased an equipment for P1,970,000. On this date, the…

A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…

Q: Burmilla purchased an equipment on January 1, 2020 at a cost of P10,000,000. This equipment was…

A: Impairment of assets means reducing the book value  of assets when carrying amount is more than…

Q: On January 1, 2018, Bray Company purchased for P2,400,000 a machine with a useful life of ten years…

A: Formula: Rate of Deprecation for DDB= 100%Life of Asset×2 Rate of Depreciation for SL= 100%Remaining…

Q: JPHEI Company purchased a machine on January 1, 2016 for P6,000,000. At the date of acquisition, the…

A: Solution: Accumulated depreciation for 3 years (from 2016 to 2018) = (Cost - residual value) * 3/ 6…

Q: SABM Co. acquired a machine on January 1, 2018, at a cost of P120,000. It was expected to have a…

A: Depreciation expense is related to the drop in the value of an asset periodically because of the…

Q: On January 3, 2018, Honest company acquired an item of property, plant and equipment at a cost of…

A:

Q: Mortal Company acquired a machine for P3,200,000 on August 31, 2017. The machine has a 5-year useful…

A: Impairment of fixed assets means when fair value of the fixed assets is less than the carrying value…

Q: On January 1, 2018, an entity purchased a machine for P7,200,000 and depreciated it by the…

A: COST OF PURCHASE OF MACHINE = P7200000 USEFUL LIFE OF ASSET = 8 YEARS METHOD OF DEPRECIATION USED =…

Q: On December 31, 2020, ABC Company has an item of machinery with a cost of P 4,500,000 and an…

A: Recoverable Amount is higher of the following :  1. Fair value less cost of disposal = P 25,00,000…

Q: On January 3, 2019, Soju Co. purchased machinery. The machinery has an estimated useful life of…

A: Sum of the years digits = n(n+1)/2 Sum of the years digits =  8(8+1)/2 Sum of the years digits =…

Q: SABM Co. acquired a machine on January 1, 2018, at a cost of P120,000. It was expected to have a…

A: Intangible asset are the fixed assets, which cannot be seen and touched by an individual due to the…

Q: USK COMPANY purchased a wood cutter on September 1, 2019 for P652,000. At the time of acquisition,…

A: solution: given: purchase price (cost )     =P652,000 useful life           =14 years residual value…

Q: On January 2, 2017, Bangs Company purchased equipment costing P1,500,000. The estimated useful life…

A: As per IFRS 5, at the time of initial recognition of an asset as held for sale, asset shall be…

Q: Libras Corporation purchased a machine on July 1, 2019,  for P500,000. The machine was estimated to…

A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…

Q: On 30 June 2020, James Ltd acquired a machine for $200 500 cash, with an expected useful life of ten…

A: Fair Value Valuation of Non Current Assets While adopting the fair value valuation it can't measure…

Q: On January 3, 2018, Leni company acquired an item of property, plant and equipment at a cost of…

A: Non-Current assets that are held for sale need to be measured at " Fair value less cost to…

Q: On December 31, 2019, an equipment with a carrying amount of P6,500,000 (cost of P10,000,000 less…

A: Concept of Impairment of assets

Q: Babcock Company purchased a piece of machinery for $40,500 on January 1, 2019, and has been…

A: Journal entry is the process of recording the business transactions in the books of accounts for the…

Q: On 30 June 2019, Swan Ltd acquired a machine for $180 000 cash, with an expected useful life of 9…

A: When a company revaluates the value of its fixed assets on the basis of Fair Market Value, the…

Q: Ventura Corporation purchased machinery on January 1, 2019 for ₱840,000. The company used the…

A: It has to be treated prospective. There is no cumulative effect. Therefore option d ₱0 is correct

Q: • June Corporation purchased equipment on 1/1/20 for $650,000. In 2020 and 2021, June depreciated…

A: Since the useful life and salvage value of asset has been revised, therefore, the remaining book…

Q: SABM Co. acquired a machine on January 1, 2018, at a cost of P120,000. It was expected to have a…

A: Revaluation surplus arises in the business when fair value or replacement value of asset is more…

Q: Gia Corporation purchased machinery on January 1, 2019 for ₱840,000. The company used the…

A: 1. It has to be handled prospectively, therefore there is no cumulative effect on tax. Answer is…

Q: In January 2019, Winn Company purchased equipment at a cost on P5,000,000. The equipment has a…

A: Impairment of assets means reducing the book value  of assets when carrying amount is more than…

Q: 19, Ivanhoe Corporation acquired equipment at a cost of $858000. Ivanhoe adopted the…

A: Solution: Sum of years digits = 8+7+6+5+4+3+2+1 = 36 Accumulated Depreciation for 2019, 2020, 2021 =…

Q: On January 1, 2014, Raven Company acquired a building at cost of P5,000,000. The building has been…

A: 1. Carrying amount = building cost - depreciation  = P5,000,000 - (P5,000,000/20 years)*5 year =…

Q: Mortal Company acquired a machine for P3,200,000 on August 31, 2017. The machine has a 5-year useful…

A: Annual Depreciation  = (Cost of the assets - residual value) / life of the assets =…

Q: Johnson Company purchased an equipment at P6,500,000 on January 1, 2020 which will be used for a…

A: Revaluation Model In the revaluation model the determination of assets value will be determined by…

Q: revaluation deficit/impairment

A: Depreciation = (Cost of equipment - Residual value)/Useful life in years Cost of equipment =…

Q: SABM Co. acquired a machine on January 1, 2018, at a cost of P120,000. It was expected to have a…

A: Revaluation surplus arises in the business when fair value or replacement value of asset is more…

Q: Ventura Corporation purchased machinery on January 1, 2019 for P630,000. The company used the…

A: Net book value at the end of 2020 = Cost of the assets - accumulated depreciation under sum of digit…

Q: On January 1, 2019, Nobel Corporation acquired machinery at a cost of P600,000. Nobel adopted the…

A: Annual Depreciation = (Cost of the assets - Salvage value) / life of the assets = (600000- 0) / 10…

Q: u Ltd. acquired an excavator on January 1, 2020, for ¥10,000 (all amounts in thousands). This…

A: As per International Financial Reporting Standards (IFRS), fixed assets can be subject to fair value…

Q: Sta Elena Construction & Development Corporation purchased a construction crane on January 1, 2019…

A: Introduction: If carrying value of an asset is more than the recoverable amount then the asset is…

Q: SABM Co. acquired a machine on January 1, 2018, at a cost of P120,000. It was expected to have a…

A: SABM Co. acquired a machine on January 1, 2018, at a cost of P120,000. It was expected to have a…

Q: The R Company acquired an equipment on January 1, 2016 at a cost of P900,000, depreciating it over 8…

A: Working Note :- Particulars Amount P Amount P Cost of equipment Jan 1 ,…

Q: On January 1, 2020, A Company decided to sell one of its machineries with a cost of P3,400,000 and…

A: When the assets are categorised as held for sale, the net realisable value is considered for…