Problem 10 – Impairment of investments in debt securities (htm)

PROBLEM NO. 9 – Property, plant and equipment transaction errors

You requested a depreciation schedule for Delivery Trucks of Woman Corporation showing the additions,
retirements, depreciation and other data affecting the income of the Company in the 4-year period 2012 to 2015,
inclusive. The Delivery Trucks account consists of the following as of January 1, 2012:
Truck No. 1 purchased Jan. 1, 2009, cost P 180,000
Truck No. 2 purchased July 1, 2009, cost 220,000
Truck No. 3 purchased Jan. 1, 2011, cost 300,000
Truck No. 4 purchased July 1, 2011, cost 240,000
P 940,000
The Delivery Trucks-Accumulated Depreciation account previously adjusted to January
1, 2012, and duly entered to the ledger, had a balance on that date of P302,000 (depreciation
on the 4 trucks from respective date of purchase, based on five-year life, no salvage value). No
charges have been made against the account before January 1, 2012. Transactions between
January 1, 2012 and December 31, 2015, and their record in the ledger were as follows: