At September 1, 2013, the following existed in the records of Lauren Company: Fixed assets P8,600,000 Accumulated depreciation P3,970,000 During the year ended September 30, 2014, fixed assets with a written down value of P370,000 was sold P490,000. The plant had originally cost P800,000. Fixed assets purchased during the year cost P1,800,000. It is the company’s policy to charge a full year’s depreciation in the year of acquisition of an asset and none in the year of sale, using the a rate of 10% on the straight-line basis. What net amount (book value) should appear in Lauren’s statement of financial position at September 30, 2014 for fixed asset

At September 1, 2013, the following existed in the records of Lauren Company: Fixed assets P8,600,000 Accumulated depreciation P3,970,000 During the year ended September 30, 2014, fixed assets with a written down value of P370,000 was sold P490,000. The plant had originally cost P800,000. Fixed assets purchased during the year cost P1,800,000. It is the company’s policy to charge a full year’s depreciation in the year of acquisition of an asset and none in the year of sale, using the a rate of 10% on the straight-line basis. What net amount (book value) should appear in Lauren’s statement of financial position at September 30, 2014 for fixed asset

Name: At September 1, 2013, the following existed in the records of Lauren C
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Description: At September 1, 2013, the following existed in the records of Lauren Company: Fixed assets P8,600,000Accumulated depreciation P3,970,000 During the year ended September 30, 2014, fixed assets with a written down value of P370,000 was sold P490,000. T

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 11PB: On May 1, 2015, Zoe Inc. purchased Branta Corp. for $15,000,000 in cash. They only received...

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On May 1, 2015, Zoe Inc. purchased Branta Corp. for $15,000,000 in cash. They only received $12,000,000 in net assets. In 2016, the market value of the goodwill obtained from Branta Corp. was valued at $4,000,000, but in 2017 it dropped to $2,000,000. Prepare the journal entry for the creation of goodwill and the entry to record any impairments to it in subsequent years.
On January 1, 2014, Klinefelter Company purchased a building for 520,000. The building had an estimated life of 20 years and an estimated residual value of 20,000. The company has been depreciating the building using straight-line depreciation. At the beginning of 2020, the following independent situations occur: a. The company estimates that the building has a remaining life of 10 years (for a total of 16 years). b. The company changes to the sum-of-the-years-digits method. c. The company discovers that it had ignored the estimated residual value in the computation of the annual depreciation each year. Required: For each of the independent situations, prepare all journal entries related to the building for 2020. Ignore income taxes.
(Entries for Disposition of Assets) On December 31, 2017, Travis Tritt Inc. has a machine with a book value of $940,000. The original cost and related accumulated depreciation at this date are as follows. Machine $1,300,000 Less: Accumulated depreciation 360,000 Book value $ 940,000 Depreciation is computed at $60,000 per year on a straight-line basis.InstructionsPresented below is a set of independent situations. For each independent situation, indicate the journal entry to be made to record the transaction. Make sure that depreciation entries are made to update the book value of the machine prior to its disposal. (a) A fire completely destroys the machine on August 31, 2018. An insurance settlement of $430,000 was received for this casualty. Assume the settlement was received immediately.(b) On April 1, 2018, Tritt sold the machine for $1,040,000 to Dwight Yoakam Company.(c) On July 31, 2018, the company donated this machine to the Mountain King City Council. The fair value…
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At December 31, 2020, the following existed on the records of BULGOGI Co.: Fixed Assets: $86,000 Accumulated Depreciation: $39,700 Fixed assets purchased during the year cost $180,000. During the year ended September 30,2021, fixed assets with a written down value of $37,000 was sold for $49,000. The plant had original cost of $80,000. It is the company's policy to charge a full year's depreciation in the year of acquisition of an asset and none in the year of sale. DRA uses 10% rate on a straight-line basis. What net amount (book value) should appear in the statement of financial position as of September 30, 2021 for fixed assets?
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