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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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The Wilcox Company acquires four machines that have the following characteristics:
Machine Cost Estimated Residual Value Estimated Service Life
A P26,000 P2,000 6 years
B 19,000 1,000 9
C 30,000 5,000 5
D 28,000 - 7
Required
1. Prepare journal entries to record the acquisition and the first year’s depreciation ,
assuming that the composite method is used on a straight-line basis.
2. If the company sells machine B after four years for P 10,000 prepare the journal entry .
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