Requirements:

1. Total depreciation
2. Carrying amount of buildings
3. Carrying amount of machinery and equipment
4. Carrying amount of automobiles and trucks
5. Carrying amount of property, plant and equipment

Ref# 204716852
The Terminator Company commenced operations on January 1, 2014. The company’s machinery
account is shown below.

Date Particulars Debit Credit Balance

Jan. 1, 2014 Purchase P157,200
120,000
132,000 P409,200
Sept. 30, 2014 Purchase on installment
Payments from Sept. to Dec. 72,000 481,200
Oct. 3, 2014 Freight and installation 6,000 487,200
Dec. 31, 2014 Depreciation P97,440 389,760
2015 Installment payments for acquisition
on Sept. 30, 2014 144,000 533,760
June 30, 2015 Purchase 240,000 773,760
Dec. 31, 2015 Depreciation 154,752 619,008
June 30, 2016 Acquisition – trade in of old machine 150,000 769,008
Dec. 31, 2016 Depreciation 153,802 615,206
Jan. 1, 2017 Sale 71,250 543,956
Dec. 31, 2017 Depreciation 108,791 435,165
Oct. 1, 2018 Sale 24,000 411,165
Dec. 31, 2018 Depreciation 82,233 328,932

The details of the transactions are as follows:

a) On September 30, 2014, a machine was purchased on an installment basis. The list price was
P180,000, but 12 payments of P18,000 each were made by the company. Only the monthly
payments were recorded in the machinery account starting with September 30, 2014. Freight
and installation charges of P6,000 were paid and charged to the machinery account on October
3, 2014.

b) On June 30, 2015, a machine was purchased for P240,000, 2/10, n/30, and recorded at
P240,000 when paid for on July 5, 2015.

c) On June 30, 2016, the machine acquired for P157,200 was traded for a larger one having a list
price of P279,000. Allowance of P129,000 was received on the old machine, the balance of
the list price being paid in cash and charged to the machinery account.

d) On January 1, 2017, the machine acquired on January 1, 2014 with cost of P132,000 was sold
for P75,000. The cost of removal and crating totaled P3,750.

e) On October 1, 2018, the machine purchased on January 1, 2014 was sold for P24,000 cash.

Assume a 5-year useful life for Terminator Company’s machinery.

Requirements:
1. What is the total amount of gain on the sale/trade-in of the machinery acquired on
January 1, 2014?
2. What is the adjusted balance of the Machinery account on December 31, 2018?
3. What is the adjusted balance of the Accumulated depreciation account on December 31,
2018?
4. What is the correct total depreciation provision for the years 2014-2018?
5. What should be the entry to correct the depreciation provision for the years 2014-2018?

Ref#379153974