1. On January 2, 2017, Greenwood Company purchased and placed in operation a machine estimated to have a 10-year life and no salvage value. The machine cost P600,000 and was depreciated on a straight-line basis. On December 27, 2020, a P60,000 device that increased the machine's output by one fourth was added to the machine. The new device made no change in the machine's estimated life and salvage value. During the first week of January, 2024 the machine was completely overhauled at a cost of P180,000. The overhaul added three additional years to the machine's estimated life but did not change its salvage value. Prepare entries in general form to record: a) the purchase of the machine b) the 2017 depreciation c) the addition of the new device

1. On January 2, 2017, Greenwood Company purchased and placed in operation a machine estimated to have a 10-year life and no salvage value. The machine cost P600,000 and was depreciated on a straight-line basis. On December 27, 2020, a P60,000 device that increased the machine's output by one fourth was added to the machine. The new device made no change in the machine's estimated life and salvage value. During the first week of January, 2024 the machine was completely overhauled at a cost of P180,000. The overhaul added three additional years to the machine's estimated life but did not change its salvage value. Prepare entries in general form to record: a) the purchase of the machine b) the 2017 depreciation c) the addition of the new device

Name: 1. On January 2, 2017, Greenwood Company purchased and placed in oper
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Description: 1. On January 2, 2017, Greenwood Company purchased and placed in operation a machine estimated to have a 10-yearlife and no salvage value. The machine cost P600,000 and was depreciated on a straight-line basis. On December 27,2020, a P60,000 device

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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1. On January 2, 2017, Greenwood Company purchased and placed in operation a machine estimated to have a 10-year life and no salvage value. The machine cost P600,000 and was depreciated on a straight-line basis. On December 27, 2020, a P60,000 device that increased the machine's output by one fourth was added to the machine. The new device made no change in the machine's estimated life and salvage value. During the first week of January, 2024 the machine was completely overhauled at a cost of P180,000. The overhaul added three additional years to the machine's estimated life but did not change its salvage value. Prepare entries in general form to record: d) the 2021 depreciation e) overhauling of the machine f) the 2024 depreciation
On January 2, 2017, Greenwood Company purchased and placed in operation a machine estimated to have a 10-yearlife and no salvage value. The machine cost P600,000 and was depreciated on a straight-line basis. On December 27,2020, a P60,000 device that increased the machine's output by one fourth was added to the machine. The new devicemade no change in the machine's estimated life and salvage value. During the first week of January, 2024 the machinewas completely overhauled at a cost of P180,000. The overhaul added three additional years to the machine's estimatedlife but did not change its salvage value. Prepare entries in general form to record:a) the purchase of the machineb) the 2017 depreciationc) the addition of the new deviced) the 2021 depreciatione) overhauling of the machinef) the 2024 depreciation
On July 1, 2015 , Smile Corporation purchased a machine at a cost of P300,000. This machine was estimated to have a useful life of 5-years with no salvage value and was depreciated using the straight-line method. On January 2, 2018. Youth determined that this machine could no longer work efficiently, that its value had been permanently impaired, and that P90,000 could be recovered over the remaining useful life of the machine. In its December 31, 2016 statement of financial position, how much should Smile report as carrying value of the machine?
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On July 1, 2020, Boop Corporation purchased a machine at a cost of P300,000. This machine was estimated to have a useful life of 5-years with no salvage value and was depreciated using the straight-line method. On January 2, 2023, Youth determined that this machine could no longer work efficiently, that its value had been permanently impaired, and that P90,000 could be recovered over the remaining useful life of the machine. In its December 31, 2021 statement of financial position, how much should Youth report as carrying value of the machine?
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Lindy Company acquired a machine at a cost of $530,000 on 1 August 2018. The machine had an estimated residual value of $50,000 and an estimated useful life of 8 years. Lindy uses straight-line method of depreciation. The financial year of the company ends on 31 March of each year. On 31 March 2020, the machine was accidentally damaged. It can still operate though at a reduced capacity. It was then expected that the remaining useful life will only be 3 years. The fair value less costs to sell of the machine at 31 March 2020 was $190,000. In addition, it is estimated that the net cash inflows from the machine will be: Year ended 31 March 2021 $155,000 Year ended 31 March 2022 120,000 Year ended 31 March 2023 80,000 Estimated residual value on 31 March 2023 5,000 Lindy Company’s cost of capital is 10%. $155,000 120,000 80,000 5,000 Required: (a) Prepare journal entries to record depreciation expenses on the machine for the years ended 31 March 2019…
Bonita Industries purchased a new machine on May 1, 2012 for $561600. At the time of acquisition, the machine was estimated to have a useful life of ten years and an estimated salvage value of $30000. The company has recorded monthly depreciation using the straight-line method. On March 1, 2021, the machine was sold for $67800. What should be the loss recognized from the sale of the machine?
Martinez Company constructed a building at a cost of $2,464,000 and occupied it beginning in January 1998. It was estimated at that time that its life would be 40 years, with no salvage value.In January 2018, a new roof was installed at a cost of $336,000, and it was estimated then that the building would have a useful life of 25 years from that date. The cost of the old roof was $179,200. What amount of depreciation should have been charged annually from the years 1998 to 2017? (Assume straight-line depreciation.) Depreciation from the years 1998 to 2017 $ SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT What entry should be made in 2018 to record the replacement of the roof? (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not…