[Solved] The property, plant and equipment section of the Statement of Financial Position at December 31, 2019 of May-Jo Machine Shop Co. appears as... Course Hero PDF
| Title | [Solved] The property, plant and equipment section of the Statement of Financial Position at December 31, 2019 of May-Jo Machine Shop Co. appears as... Course Hero |
|---|---|
| Author | Shawn Noel Peralta |
| Course | Fundamentals of Accounting II |
| Institution | Pontifical and Royal University of Santo Tomas, The Catholic University of the Philippines |
| Pages | 4 |
| File Size | 262.1 KB |
| File Type | |
| Total Downloads | 509 |
| Total Views | 850 |
Summary
Business /Accounting /The property, plant and equipment secti...숥This question has been answeredQuestionThe property, plant and equipment section of the Statement of Financial Position at December 31, 2019 of May-Jo Machine Shop Co. appears as follows:Land P 800, Building P1,500, Less: Accumulated d...
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3/24/2021
[Solved] The property, plant and equipment section of the Statement of Financial Position at December 31, 2019 of May-Jo Machin
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Business / Accounting / The property, plant and equipment secti…
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Question The property, plant and equipment section of the Statement of Financial Position at December 3 May-Jo Machine Shop Co. appears as follows: Land P 800,000 Building P1,500,000 Less: Accumulated depreciation 450,000 1,050,000 Equipment P 700,000 Less: Accumulated depreciation 400,000 300,000 Net property, plant and equipment P2,150,000 Because of good business conditions the company decided to move to a more strategic loc Transactions on the transfer of location for the year 2020 are described below: 1. The land and building on the old site were sold for P1,700,000 on January 2, 2020. 2. Equipment with a depreciated value of P150,000 (original cost, P400,000) was sold for P120,0 April 1, 2020. 3. New equipment with an invoice price of P300,000 was purchased on May 1, 2020. A 2% disco allowed. Delivery of the equipment to the site was P1,000 paid to the hauler and P1,500 was spe installation. 4. The land where the company moved in as new site was given by a friend of the company Presi gift on February 1, 2020. It had an appraised value of P5,000,000. However, the company paid P to the B.I.R. for taxes and other costs directly related to the land. 5. An old building on the land had to be demolished and the company paid P400,000 on this on F 15, 2020. 6. A new equipment with an invoice cost of P150,000 was purchased on October 31, 2020. The paid P100,000 cash and was granted a trade-in allowance of P50,000 on a used equipment whi cost of P40,000 and accumulated depreciation of P15,000. 7. May-Jo company constructed a new building at its new site for P2,800,000 on May 31,2020. 8. Extraordinary repairs on the old equipment amounting to P50,000 were made after the equipm been moved to the new site on June 15, 2020. 9. Buildings are depreciated using straight-line with 30 year life while equipment have 10 year life salvage values. Required: 1) Prepare entries for the year 2020 related to the above transactions. 2) How much is the gain or loss on sale and trade-in of property, plant and equipment? 2)Prepare the section of the Property, Plant and Equipment for May-Jo Machine Shop Co. to be the Statement of Financial Position as of December 31, 2020.
Answered by Expert Tutors 숦
3/24/2021
[Solved] The property, plant and equipment section of the Statement of Financial Position at December 31, 2019 of May-Jo Machin
Loss from disposal= B.V of equipment- (cash received from sale+ accumulated dep = 400000-(120000+150000) = 130000 Account name Debit Credit 2b. Depreciation expense-equipment.30000 Accumulated depreciation30000 To record the depreciation of equipment for 3 months Depreciation= (Book value—salvage value)/useful life * 3/4 = (400000- 0)/10* 3/ 4 Account name Debit Credit 3. Equipment invoice price.300000 Discount allowed6000 Cash294000 To record the purchase of equipment at a discount on May 1 2020 3b. Account name Debit Credit Delivery of equipment1000 Installation1500 Cash2500 To record the expenses incurred on purchase of equipment Account name Debit Credit 4. Land 5000000 Capital500000 To record the land given by the friend of the president of the company. 4b Account nameDebitCredit Tax expense and land costs250000 Cash250000 To record the expenses associated with the land.
3/24/2021
[Solved] The property, plant and equipment section of the Statement of Financial Position at December 31, 2019 of May-Jo Machin
Cash 100000 Trade in allowance50000 Gain on trade in25000 To record the purchase of the new equipment with a trade in allowance of 50000 for an equi worth 40000 and accumulated depreciation of 15000 7. Account Debit Credit Constructed building 2800000 Cash2800000 To record the construction of a new building 8. Account name Debit Credit Repairs50000 Cash50000 To record the expenses of repairing the old equipment 2. loss on disposal Loss on disposal on April 1 2020-130000 Gain on the trade in25000 10500 3. May-Jo Machine Shop Co. Statement of nancial position of plant and equipment As of December 31 2020 Book ValueDepreciationNet book value Land and building 780000046666.677753333.33 Equipment's.754000330416.67 423583.33 Net assets.8440000377083.348062916.66 Land and building computation Depreciation New land from the friend= 5000000 Building that was constructed= 2800000 28000000/10*(6/12) =46666.67 5000000+2800000= 7800000 Depreciation is on a straight-line basis and no salvage value. The useful life is 30 years
3/24/2021
[Solved] The property, plant and equipment section of the Statement of Financial Position at December 31, 2019 of May-Jo Machin
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