PROBLEM 1

Jun-22 Second-hand vehicle

Cash 152,000
Rapainting cost 6,550
New tires 3,450
Cash paid 162,000
Diminishing rate 40%
Annual Depreciation 64800

CA Existing Vehicle
Cost 468,000
Accumulated Dep'n 196,560
CA 1/1/19 271,440
Diminishing rate 40%
Total Dep'n Expense @ 12/31/19

3-Jan New Machine 570,000

Freight charges 4,420
Installation cost 17,580
Cost 592,000
Residual Value 40,000
552,000

18-Aug Machine 1
Cost 430,000
Residual Value 25,000
405,000
Useful life /5
Annual Dep'n 81,000
Dep'n 01/01/19-8/18 X 8/12

Machine 2
Cost 480,000
Residual Value 30,000
450,000
Useful life /6
DEPRECIATION EXPENSE - MACHINERY 2018

Accumulated Depreciation - Office Furniture

Depreciation 2020 115,000
 5,400
109,600
/8
Annual Depreciation 13700
Aug-28 Depreciation 2019 8/28-12/31 x 4/12
Accumulated Dep'n - Office Furniture 12/31/18

Depreciation Expense - Machinery 2021

Jan-05 Machine 2
Cost 480,000
Overhaul 120,000
600,000

Accumulated Dep'n
2016 - (480,000-30,000)/6 x 11/12 68,750
2017-2020 (75,000x4) -300000
Adjusted CA@1/1/2020 -231,250
Residual Value -50,000
181,250
Revised UL 6-(4+11/12)=1 /2.0833
Machine 3 Annual Dep'n
Total Dep'n Machineries 12/31/2021

TOTAL DEPRECIATION EXPENSE 2021

Vehicles
Identical Vehicle (remaining @2021) 234,000
98,280
12/31/18 135,720
12/31/19 60%
12/31/20 60%
48,859

Vehicle acquired 2019 162,000

32,400
129,600
60%
77,760

Trade-in Vehicle 6/20/21

Cash Paid 233,000
Trade in Allowance 37,000
Cost 270,000

Building cost 1,857,200

 Residual value 50,000
1,807,200

Land Improvements 55,000

Office Furnitures annual dep'n
Machine (#4)
TOTAL DEPRECIATION EXPENSE 2021

PROBLEM 5
Initial measure of wasting Assets 50,000
5,000,000
750,000 5,800,000
Residual Value -600,000
Depletion Cost 5,200,000
Total Estimated No. of output / 4,000,000
Depletion Rate 2017 1.30
Actual Units Extracted - 2017 x 5,000
Depletion - 2017 6,500

Depletion Cost 5,200,000

Depletion - 2017 -6,500
5,193,500
Improvemets 275,000 5,468,500
Total Estimated No. of Output 4,000,000
3,000,000
-5,000 6,995,000
Depletion Rate - 2018 0.78
Actual Unit Extracted - 2018 1,000,000
Depletion - 2018 780,000

Depreciation - 2017
Building Cost 1,500,000
Residual Value -250,000
1,250,000
Estimated No. of Output - 2017 / 4,000,000
Depreciation Rate - 2017 0.31
Units extrracted - 2017 x 5,000
Depreciation - 2017 1,550

Depreciation - 2018
 CA. Building 1,250,000
AD -1,550
CA Jan. 01, 2018 1,248,450
Additional Building Constructed 225,000
1,473,450
Estimated No. of Output / 6,995,000
Depreciation Rate - 2018 0.21
Units Extracted - 2018 x 1,000,000
Depreciation - 2018 210,000

Depletion Cost 5,468,500

Depletion - 2018 -780,000
4,688,500
Improvements 1,100,000
Total Estimated No. of Outputs 7,000,000
-5,000
-1,000,000
Depletion Rate - 2019
Actual Units Extracted - 2019 x
Depletion - 2019

Depreciation - 2019
Units Extracted - 2019 2,500,000
Depreciation Rate x 0.21
Depreciation - 2019 525,000

PROBLEM 6
Land 01/01/18 3,000,000
Land site no. 621 2,000,000
Commission to real estate agent 60,000
Incurred to clear the land 15,000
Land site no. 622
(100,000 x 45 x 1,200/ 3,600) 1,500,000
6,575,000

Building 1/1/18 24,000,000

Excavation fees 110,000
Architertural design fees 380,000
Building permit fees 10,000
Construction for new building 30,000
New building 10,500,000
Cost of Building 12/31/18 35,030,000

Leasehold Improvements 1/1/18 3,500,000

Electrical Work 350,000
improved leased office space 650,000
Construction of extension to current working are
( 800,000 x 1/2) 400000
Cost of Leasehold Improvements 12/31/18 4,900,000

Machinery and Equipment 1/1/18 1,400,000

Invoice price 750,000
Freight costs 20,000
Unloading charges 15,000
Cost of Machinery and Equipment 12/31/18 2,185,000

Painting of ceilings 100,000

Royalty 130,000
Expense 230,000
 PROBLEM 2
EQUIPMENT
Date
2/1/2017 Equipment
Notes Payable

12/31/2017 Dep. Exp-Equip

x 6/12 32400 Accu. Dep-Equip

No Entry

2/1/2018 No Entry

12/31/2018

108576
140976
BUILDING
7/1/2017 Building
Share Cap-OS

12/31/2017 Dep. Exp-Bldg

Accu. Dep-Bldg
/5 110400
12/31/2018

INVENTORY/FIXTURES
4/1/2018 Inventory
Display Fixtures
54000 Cash
Gain on Acquisition of
Inventory & fixtures
12/31/2018

75000
239400 MACHINERY
7/1/2018 Machinery-new
Cash
 12/31/2018

13700
4567
18267 Equipment
Building
Display Fixtures
Machinery
Total Depreciation Exp.

87000
110400
197400

x40%x6/12 9772

x40%x9/12 23328

x40%x6/12 54000 87100

/20 90360

/10 5500
13700
197400
394060

PROBLEM 4
1/1/2017 Cost
/Useful Life
Annual Depreciation
x Depreciation 2017 to 2018
Accumulated Depreciation
12/31/2018 Carrying Amount
Recoverable Amount
Impairment Loss
12/31/2019 Carrying Amount
Recoverable Amount

Limit:
CA as if no impairment
CA w/ Impairment

Impairment Necessary
5,788,500

5,995,000
0.97
2,500,000
2,425,000

PROBLEM 7
1. 2018 Depreciation Expense on Buildings:
BV 1/1/18 (30,000,000-6,577,500)
150% Declining balance rate (1/25x150%)
Depreciation Expense for 2018

2. 2018 Depreciation Expense on Leasehold Impro

Cost of Leasehold improvements
Dep'n period (5/1-12/31/18)
Depreciation per month
Depreciation (5/1-12/31/18)
(105,000 x 8 months)
3. Accumulated Depreciation - Machinery & Equip
Balance 1/1/18
Depreciation for 2018:
Cost 1/1/18
Less: Machine Stolen
Balance
Depreciation rate (1/10)
Machine stolen (575,000 x 10% x 3/12)
Machine purhcased on July 1 (7M+125T+675T)
(7,750,000x10%x6/12)
Machine stolen (575,000 x 5/10)
Balance 12/31/18
Per Client Correct Entry
300,000 Equipment 277,778
300,000 Discount in NP 22,222
Notes Payable 300,000
30,000 Dep. Exp-Equip 27,778
30,000 Accu. Dep-Equip 27,778

Interest Exp. 20,371

Discount on NP 20,371
Interest Exp. 1,851
Discount on NP 1,851

1,500,000 Building 1,950,000

1,500,000 Share Cap-OS 1,500,000
Share Prem-OS 1,500,000
60,000 Dep. Exp-Bldg 78,000
60,000 Accu. Dep-Bldg 78,000

255,000 Inventory 227,679

165,000 Display Fixtures 147,321
375,000 Cash 375,000

45,000

135,000 Machinery-new 653,400

135,000 Accu. Dep-Machinery 345,600
Machinery-Old 864,000
 Cash 135,000

years total
273,778 10 27,778
1,950,000 25 78,000
147,321 10 14,732
653,400 10 65,340
185,850
150,000 150,000
10
15,000
2
30,000 -30,000
120,000
96,000
24,000
84000
111,000
-27,000

105000
84,000
21,000 21,000
21,000
xpense on Buildings: 4. Accumulated Depreciation - Delivery Equipment:
-6,577,500) 23,422,500 Balance 1/1/18
e rate (1/25x150%) x 6% Depreciation for 2018:
1,405,350 Existing Delivery Equipment
Less:Machine stolen (900,000x2/10)
xpense on Leasehold Improvements: New Truck Purchased 1/2/18
8,400,000 (1,200,000 x 4/10)
x 80 months Old truck - trade in (900,000 - 270,000)
105,000 Balance 12/31/18

840,000 5. Loss on exchange (trade in) of truck on 1/2/18:

 FV of asset given (1,200,000 - 1,000,000)
iation - Machinery & Equipment: Book value
6,250,000 Loss on exchange (trade in)

22,500,000
575,000
21,925,000
10% 2,192,500
00 x 10% x 3/12) 14,375
July 1 (7M+125T+675T)
387,500 2,594,375
-287,500
8,556,875
 PROBLEM 3
1-Jan
Adjusting Entry 31-Mar
30-Jun
30-Sep
31-Dec
WEIGHTED AVERAGE EXPENDITURE
Principal borrowing
expenditure from general
average intterest rate
12000000
14000000
26000000
Accu. Dep-Equip 2,222
Interest Exp. 1,851 borrowing cost from specific
RE 18,149 Fv 17000000x(1.03)
Equipment 22,222 Pv
Cappitalized interest
Actual interest

Interest expense 2019

Building 450,000
RE 18,000
Share Premium 450,000
Accu. Dep-Bldg. 18,000

Gain on Acquisition of
inventory & fixtures 45,000
Inventory 27,321
Display Fixtures 17,679
Machinery-new 518,400
Accu.Dep-Machinery 345,600
Machinery-Old 864,000
n - Delivery Equipment:
4,230,000

90,000
-180,000 720,000

480,000 1,200,000
-630,000
4,800,000

n) of truck on 1/2/18:
- 1,000,000) 200,000
-270,000
-70,000
 4000000 12 12 4000000
8000000 9 12 6000000
12200000 6 12 6100000
8800000 3 12 2200000
7000000 0
18300000
-17000000
1300000

0.1 1200000
0.12 1680000
2880000 0.11 144040

19133670
17000000 2133670
2277710
GB 1200000
1680000 2880000
SB 2133670 5013670
2735960
PROBLEM 1
A. #1
#2
#3
#4
#5
Current Liability - Dec. 31, 2018

B. #4

Noncurrent Liability - Dec. 31, 2018

PROBLEM 4
1. Containers held by customers Dec 31, 2016, 2015 deliveries
Less: Containers returned in 2017
Revenue from container sales

2. Beginning Balance
Add: Deliveries in 2017
TOTAL
Less: 2017 containers return 354,500
2017 containers sale 27,500
Ending Balance
PROBLEM 6
Note Discount Amorization
Date Payment Discount Amort.
12/31/2018
12/31/2018 60,000.00 21,869
12/31/2019 60,000.00 17,293
12/31/2020 60,000.00 12,168

Downpayment
PV of Installment payment ( 60,000 x 3.03735 )
Cost of Machinery

PROBLEM 7
1. Cost of Equipment (1,200,000*.68301)
Less: Accu. Dep'n
Cost 819,612
Less: Residual Value 150,000
Depreciable Amt 669,612
*2/5
Carrying Amount of Equipment - 2019

2. PV of Note - 2017 819,612

*1.10
CA of Note - 2018 901,573
*1.10
CA of Note - 2019 991,730
 PROBLEM 2
Date Voucher #
200,000.00 27-Nov 797
4,200,000.00 2-Dec 821
1,500,000.00 11-Dec 829
500,000.00 20-Dec 836
600,000.00 21-Dec 842
7,000,000.00 22-Dec 856
31-Dec 865
4,000,000.00
/8years
500,000.00 Adjustment
x7 Purchase discount lost
3,500,000.00 Vouchers payable

Unpaid vouchers adjusted

Bal. of control account (1,645,000 - 1,309,500 - 36,750)
Total purchase discount lost
85,000
57,500 Analysis
27,500 Original net vouchers pay.
Less : Cancelled vouchers
325,000 Net vouchers payable
430,000 Less : net vouchers pay. still unpaid (340,000 - 36,750)
755,000 Payments that should have been made if all discounts were ta
Less: actual cash disbursements (per control account)
-382,000 Discount lost on paid vouchers
373,000 Discount lost on unpaid vouchers
Total purchase discount lost
Carrying Value
182,241.00
144,110
101,403
53,571

80,000.00
182,241.00
262,241.00

819,612

267,845
551,767
 Creditor Amount per sked Amount as adj. Discount loss
Donita Supply Co. 78,400 80,000 1,600
Golden Distributors 19,600 - -
Panutsa Sales 44,100 45,000 900
Mukasim Dealers 17,150 - -
Boom Merchandising 22,050 22,500 450
Holen Mercantile 80,850 80,850 -
Balentong Traders 78,400 78,400 -
340,550 306,750 2,950

8,000
Vouchers payable 8,000

306,750
(1,645,000 - 1,309,500 - 36,750) 298,750
8,000

1,645,000
36,750
1,608,250
. still unpaid (340,000 - 36,750) 303,800
have been made if all discounts were taken 1,304,450
rsements (per control account) 1,309,500
5,050
2,950
8,000
 Problem 3
Sales Percent Total returns
January 4,200,000 7% 294,000
February 4,700,000 7% 329,000
March 3,900,000 7% 273,000
April 3,250,000 7% 227,500
May 2,400,000 10% 240,000
June 1,900,000 10% 190,000
1,553,500

Manufacturing Cost
Freight
Total
Salavage Value
Net loss on componet Return

Required estimated Warranty liability - 06/30/2018 (648,850*65%)

Estimated warranty Liability per book
Increase in warranty liability
Returns after 06/30/2018 Amount
10% 29,400
20% 65,800
30% 81,900
50% 113,750
70% 168,000
100% 190,000
648,850

70%
5%
75%
-10
65%

421.753
120,400
301,353