P10.

1 modified
Land
1 Cost of filling and grading the land ₱ 6,600.00
2 Full payment to building contractor
3 Real estate taxes on land paid for the current year
4 Cost of real estate purchased as a plant site (land and building) 145,000.00
5 Excavation costs for new building
6 Architect's fees on building plan
7 Accrued real estate taxes paid at the time of purchase of real estate 2,800.00
8 Cost of parking lots and driveways
Cost of demolishing building to make land suitable for construction of
9 new building 15,000.00
10 Cost of landscaping on property purchased
11 Broker's commissions on real estate purchased 7,250.00
Annual insurance coverage for the new building after completion of the
12 construction
13 Proceeds from salvage of demolished building - 3,600.00
₱ 173,050.00
 Building Other Account

₱ 780,000.00
Real Estate Tax Expense 5,000.00

35,000.00
10,500.00

Land Improvements 14,000.00

Land Improvements 7,200.00

Prepaid Insurance 5,800.00

₱ 825,500.00
P10.3 modified

1
a Date Account Title/s Debit Credit
1/1/2020 Equipment 37,500.00
Maintenance Expense 100.00
Cash 37,600.00

b 12/31/2020 Depreciation Expense 6,500.00

Accumulated Depreciation 6,500.00
Cost $ 37,500.00
Less: Residual Value 5,000.00
Depreciable Cost 32,500.00
Useful Life 5.00
Annual Depreciation $ 6,500.00

c 12/31/2020 Depreciation Expense 4,333.33

Accumulated Depreciation 4,333.33
Cost $ 37,500.00
Less: Residual Value 5,000.00
Depreciable Cost 32,500.00
Useful Life 5.00
Annual Depreciation $ 6,500.00
Depreciation from May 1 to Dec 31 $ 4,333.33

2 Machine B Cost $ 80,000.00

Less: Residual Value 5,000.00
Depreciable Cost 75,000.00
Useful Life 4.00
Annual Depreciation $ 18,750.00

a Straight-line method 12/31/2020 $ 18,750.00

12/31/2021 18,750.00
12/31/2022 18,750.00
12/31/2023 18,750.00
Total Accumulated Depreciation as at 12/31/2023 $ 75,000.00

b Double declining method Book Value Depreciation Rate

12/31/2020 $ 80,000.00 50.00%
12/31/2021 40,000.00 50.00%
12/31/2022 20,000.00 50.00%
12/31/2023 10,000.00 50.00%

c Units of Activity method Depreciable Cost 75,000.00

Useful Life 125,000.00
Depreciation per
unit 0.60
 Usage
12/31/2020 42,000.00
12/31/2021 37,000.00
12/31/2022 28,000.00
12/31/2023 18,000.00
Total Usage 125,000.00
Total Accumulated Depreciation as at 12/31/2023

3 Highest depreciation in 2020 Double declining balance method

Highest depreciation in 2023 Straight-line method
Highest total amount over 4 years All methods have the same total amount of depreciation ov

4 Double declining method Book Value Depreciation Rate

12/31/2020 (Partial for 8 months) $ 80,000.00 50.00%
12/31/2021 53,333.33 50.00%
12/31/2022 26,666.67 50.00%
12/31/2023 13,333.33 50.00%
04/30/2024 (Partial for 4 months) 6,666.67 PLUG
years

years

Accumulated
Annual Depreciation Depreciation
$ 40,000.00 $ 40,000.00
20,000.00 60,000.00
10,000.00 70,000.00
5,000.00 75,000.00

units
 Depreciation
$ 25,200.00
22,200.00
16,800.00
10,800.00

$ 75,000.00

al amount of depreciation over 4 years.

Accumulated
Annual Depreciation Depreciation
$ 26,666.67 $ 26,666.67
26,666.67 53,333.33
13,333.33 66,666.67
6,666.67 73,333.33
1,666.67 75,000.00
E10.9 modified
Building Warehouse
1 Cost $ 800,000.00 $ 100,000.00
Less: Accumulated Depreciation 190,000.00 18,000.00
Remaining Book Value 610,000.00 82,000.00
Less: Proposed Residual Value 18,000.00 3,700.00
New Depreciable Cost 592,000.00 78,300.00
Remaining Useful Life* 40.00 15.00
New Annual Depreciation $ 14,800.00 $ 5,220.00

Years Lapsed*
Building (1/1/2010 to 1/1/2020) 10.00 years
Warehouse (1/1/2015 to 1/1/2020) 5.00 years

2
12/31/2020 Depreciation Expense - Building 14,800.00
Accumulated Depreciation - Building 14,800.00

Depreciation Expense - Warehouse 5,220.00

Accumulated Depreciation - Warehouse 5,220.00
P10.4 modified

Cost 80,000.00 Year

Less: Residual Value 8,000.00 2018
Depreciable Cost 72,000.00 2019
Useful Life 6.00 years 2020
Annual Depreciation - SL Method 12,000.00 2021
2022
Cost 80,000.00 2023
Less: Accumulated Depreciation 24,000.00 2024
Book Value as at 12/31/2019 56,000.00
Less: Residual Value 8,000.00
New Depreciable Cost 48,000.00
Remaining Useful Life (7 less 2 years) 5.00 years
New Annual Depreciation 9,600.00

Cost 80,000.00
Less: Accumulated Depreciation 52,800.00
Book Value as at 12/31/2022 27,200.00
Less: Residual Value 4,400.00
New Depreciable Cost 22,800.00
Remaining Useful Life (7 less 5 years) 2.00 years
New Annual Depreciation 11,400.00

CHECK:
Cost 80,000.00
Less: New Residual Value 4,400.00
Accumulated Depreciation 75,600.00
Depreciation Expense Accumulated Depreciation
12,000.00 12,000.00
12,000.00 24,000.00
9,600.00 33,600.00
9,600.00 43,200.00
9,600.00 52,800.00
11,400.00 64,200.00
11,400.00 75,600.00
E10.2 modified

1
Date Account Title/s Debit Credit
1/1/2020 Accumulated Depreciation 58,000.00
Equipment 58,000.00

Cost 58,000.00
Useful Life 10.00 years
Annual Depreciation 5,800.00

6/30/2020 Depreciation Expense 4,000.00

Accumulated Depreciation 4,000.00

Cost 40,000.00
Useful Life 5.00 years
Annual Depreciation 8,000.00
Half Year Depreciation 4,000.00

6/30/2020 Accumulated Depreciation 24,000.00

Cash 14,600.00
Loss on sale of computer 1,400.00
Equipment 40,000.00

Cost 40,000.00
Useful Life 5.00 years
Annual Depreciation 8,000.00
Depreciation in 2017 4,000.00
Depreciation in 2018 8,000.00
Depreciation in 2019 8,000.00
Half Year Depreciation in 2020 4,000.00
Total Acc Dep as of 06/30/2020 24,000.00

12/31/2020 Depreciation Expense 5,000.00

Accumulated Depreciation 5,000.00

12/31/2020 Accumulated Depreciation 23,750.00

Loss on retirement of truck 10,250.00
Equipment 34,000.00

Cost 34,000.00
Less: Residual Value 4,000.00
Depreciable Cost 30,000.00
Useful Life 6.00 years
Annual Depreciation 5,000.00
Depreciation in 2016 3,750.00
Depreciation in 2017 5,000.00
Depreciation in 2018 5,000.00
 Depreciation in 2019 5,000.00
Depreciation in 2020 5,000.00
Total Acc Dep as of 12/31/2020 23,750.00

2
6/30/2020 Depreciation Expense 4,000.00
Accumulated Depreciation 4,000.00

6/30/2020 Accumulated Depreciation 24,000.00

Cash 21,500.00
Gain on sale of computer 5,500.00
Equipment 40,000.00

3
12/31/2020 Accumulated Depreciation 23,750.00
Cash 1,500.00
Loss on sale of truck 8,750.00
Equipment 34,000.00
E10.19 modified
Jay Astro
Cost 22,000.00 10,000.00
Accumulated Depreciation 16,000.00 7,000.00
Book Value 6,000.00 3,000.00

1 Account Title/s Debit Credit

Jay's Equipment (new) 6,000.00
book Accumulated Depreciation 16,000.00
Equipment (old) 22,000.00

Astro's Equipment (new) 3,000.00

book Accumulated Depreciation 7,000.00
Equipment (old) 10,000.00

2 Account Title/s Debit Credit

Jay's Equipment (new) 9,000.00
book Accumulated Depreciation 16,000.00
Equipment (old) 22,000.00
Cash 3,000.00

Astro's Equipment (new) 6,000.00

book Accumulated Depreciation 7,000.00
Equipment (old) 10,000.00
Cash 3,000.00

3 Account Title/s Debit Credit

Jay's Equipment (new) 4,000.00
book Accumulated Depreciation 16,000.00
Loss on Disposal of Plant Asset 2,000.00
Equipment (old) 22,000.00

Astro's Equipment (new) 4,000.00

book Accumulated Depreciation 7,000.00
Equipment (old) 10,000.00
Gain on Disposal of Plant Asset 1,000.00

4 Account Title/s Debit Credit

Jay's Equipment (new) 9,000.00
book Accumulated Depreciation 16,000.00
Loss on Disposal of Plant Asset 2,000.00
Equipment (old) 22,000.00
Cash 5,000.00

Astro's Equipment (new) 9,000.00

book Accumulated Depreciation 7,000.00
Equipment (old) 10,000.00
Gain on Disposal of Plant Asset 1,000.00
Cash 5,000.00
P10.5 modified

1
Date Account Title/s Debit Credit
1/4/2020 Land 2,200,000.00
Cash 2,200,000.00

1/5/2020 Depreciation Expense - Equipment 25,000.00

Accumulated Depreciation - Equipment 25,000.00

1/5/2020 Accumulated Depreciation - Equipment 325,000.00

Cash 466,000.00
Gain on sale of equipment 41,000.00
Equipment 750,000.00

Cost of equipment 750,000.00

Useful life 10.00 years
Annual Depreciation 75,000.00
Accumulated Depreciation (2016 to 2019) 300,000.00
Depreciation for 4 months in 2020 25,000.00
Total Acc Dep 325,000.00

1/6/2020 Cash 1,800,000.00

Land 300,000.00
Gain on sale of land 1,500,000.00

1/7/2020 Equipment 2,450,000.00

Cash 2,450,000.00

12/31/2020 Depreciation Expense - Equipment 50,000.00

Accumulated Depreciation - Equipment 50,000.00

Accumulated Depreciation - Equipment 500,000.00

Equipment 500,000.00

Cost of equipment 500,000.00

Useful life 10.00 years
Annual Depreciation 50,000.00
Total Acc Dep from 12/31/2010 to 12/31/2019 (9 years) 450,000.00

2
12/31/2020 Depreciation Expense - Buildings 530,000.00
Accumulated Depreciation - Buildings 530,000.00

Cost 26,500,000.00
Useful life 50.00 years
Annual Depreciation 530,000.00
12/31/2020 Depreciation Expense - Equipment 3,997,500.00
Accumulated Depreciation - Equipment 3,997,500.00

Equipment as of 12/31/2019 40,000,000.00

Less: May 1 sale - 750,000.00
Less: Dec 31 retirement - 500,000.00
Equipment as of 12/31/2020 38,750,000.00
Useful life 10.00 years
Annual Depreciation 3,875,000.00 A

Equipment Purchased on July 1, 2020 2,450,000.00

Useful life 10.00 years
Annual Depreciation 245,000.00
Depreciation from July 1 to Dec 31, 2020 122,500.00 B
Total Depreciation Expense for Equipment in 2020 3,997,500.00 A + B

Accumulated Depreciation - Equipment as of 12/31/2019 5,000,000.00

Less: May 1 sale - 325,000.00
Less: Dec 31 retirement - 500,000.00
Accumulated Depreciation - Equipment as of 12/31/2020 4,175,000.00
Annual Depreciation for Existing Equipment in 2020 3,875,000.00 A
Annual Depreciation for Equipment Purchased in 2020 122,500.00 B
Accumulated Depreciation - Equipment as of 12/31/2020 8,172,500.00

3 Jimenez Enterprises
Statement of Financial Position (Partial)
As of December 31, 2020

Land ₱ 4,900,000.00
Buildings ₱ 26,500,000.00
Less: Accumulated Depreciation 12,630,000.00 13,870,000.00
Equipment 41,200,000.00
Less: Accumulated Depreciation 8,172,500.00 33,027,500.00
Total Plant Assets ₱ 51,797,500.00
E10.14 modified

1 Account Title/s Debit Credit

12/31/2020 Inventory 114,080.00
Accumulated Depletion 114,080.00

Cost of Mine $ 736,000.00

Estimated Tons of Ores 800,000.00
Depletion Cost per Ton $ 0.92
Extracted Units 124,000.00 tons
Depletion Expense/Inventory 114,080.00

2 Account Title/s Debit Credit

12/31/2020 Inventory 114,080.00
Accumulated Depletion 114,080.00 Extracted

Cost of Goods Sold 82,800.00

Inventory 82,800.00

Depletion Cost per Ton $ 0.92

Units Sold 90,000.00 tons
CGS $ 82,800.00

Accounts Receivable 180,000.00

Sales 180,000.00

Units Sold 90,000.00 tons

Selling Price per Ton $ 2.00
Sales $ 180,000.00
 Inven tory
114,080.00 82,800.00 CGS

31,280.00
P10.7 modified

1
Date Account Title/s Debit Credit
2/1/2020 Legal Expense 45,000.00
Cash 45,000.00

6/30/2020 Research & Development Expense 168,000.00

Cash 168,000.00

1/7/2020 Patent 25,000.00

Cash 25,000.00

1/9/2020 Prepaid Advertising 58,000.00

Cash 58,000.00

1/10/2020 Franchise 100,000.00

Cash 100,000.00

2
12/31/2020 Amortization Expense - Patent 6,625.00
Patent 6,625.00

Existing Patent 60,000.00

Useful Life 10.00 years
Amortization of Existing Patent 6,000.00

New Patent 25,000.00

Useful Life 20.00 years
Amortization of New Patent (July 1 to Dec 31) 625.00
Total Amortization for Patent in 2020 6,625.00

12/31/2020 Amortization Expense - Franchise 5,425.00

Franchise 5,425.00

Existing Franchise $ 48,000.00

Useful Life 10.00 years
Amortization of Existing Franchise $ 4,800.00

Acquired Franchise $ 100,000.00

Useful Life 40.00 years
Annual Amortization of Acquired Franchise $ 2,500.00
Partial Amortization in 2020 $ 625.00
Total Amortization for Franchise in 2020 $ 5,425.00

3 Glover Restaurants
Statement of Financial Position (Partial)
As of December 31, 2020
Intangible Assets:
Patents ($85,000 cost less $12,625 amortization) $ 72,375.00
Franchise ($148,000 cost less $24,625 amortization) 123,375.00
Total Intangible Assets 195,750.00