Please refer below for information. Kindly answers all the questions and show complete solution. Pleaseeee i badly need it!! Thank you so much for your kindness!! 1. Oxygen Corporation, a VAT registered Company, purchased equipment with invoice amount of P11,200.Other costs incurred were freight charges of P200, repairs of P350 for damage during installation, and installation costs of P225. What is the cost of the equipment? a. P11,975 b. P10,425 c. P10,775 d. P11,625 2. Jerome Corporation purchased a Xerox and a Printer on January 2, 2016. Both acquisitions were made on deferred payment basis. The Xerox was purchased from Photoshop Corporation by issuing P100,000 non-interest bearing note payable after 3 years. On the other hand, the Printer was purchased from Inkshop Inc. by issuing P80,000 non-interest bearing note payable on four equal installments every December 31 starting on December 31, 2016. Both equipment has no readily market value/cash price value. Jerome’s most recent borrowing rate is 10%. What is the acquisition cost of Xerox and Printer, respectively? a. P75,130 and P63,398 b. P100,000 and P63,398 c. P100,000 and P80,000 d. P75,130 and P80,000 3.Talon Company, buys a delivery van with a list price of P30,000. The dealer grants a 15% reduction in list price and an additional 2% cash discount on the net price if payment is made in 30 days. Talon Company failed to pay within the discount period. What should be the recorded cost of the van? a. P30,000 b. P25,500 c. P29,400 d. P24,990
Please refer below for information. Kindly answers all the questions and show complete solution. Pleaseeee i badly need it!! Thank you so much for your kindness!!
1. Oxygen Corporation, a VAT registered Company, purchased equipment with invoice amount of P11,200.Other costs incurred were freight charges of P200, repairs of P350 for damage during installation, and installation costs of P225. What is the cost of the equipment?
a. P11,975
b. P10,425
c. P10,775
d. P11,625
2. Jerome Corporation purchased a Xerox and a Printer on January 2, 2016. Both acquisitions were made on deferred payment basis. The Xerox was purchased from Photoshop Corporation by issuing P100,000 non-interest bearing note payable after 3 years. On the other hand, the Printer was purchased from Inkshop Inc. by issuing P80,000 non-interest bearing note payable on four equal installments every December 31 starting on December 31, 2016. Both equipment has no readily market value/cash price value. Jerome’s
most recent borrowing rate is 10%. What is the acquisition cost of Xerox and Printer, respectively?
a. P75,130 and P63,398
b. P100,000 and P63,398
c. P100,000 and P80,000
d. P75,130 and P80,000
3.Talon Company, buys a delivery van with a list price of P30,000. The dealer grants a 15% reduction in list price and an additional 2% cash discount on the net price if payment is made in 30 days. Talon Company failed to pay within the discount period. What should be the recorded cost of the van?
a. P30,000
b. P25,500
c. P29,400
d. P24,990
Step by step
Solved in 3 steps with 2 images
