Reference no: EM133149115

Questions -

Q1. Angel Corp. uses different kinds of machines in its manufacturing process. The following information relates to the acquisition of machines that it has recorded in 2021.

Cash paid for equipment- P250,000

Cost of transporting machine - insurance and transport- P9,000

Labor cost of installation by expert fitter- P15,000

Labor cost of testing equipment- P12,000

Insurance cost for 2021- P4,500

Cost of training for personnel who will use the machine- P7,500

Cost of safety rails and platforms surrounding machine- P18,000

Cost of water devices to keep machine cool- P24,000

Cost of adjustments to machine during 2021 to make it operate more efficiently- P22,500

What is the cost of the machine?

a. P380,500

b. P358,000

c. P350,500

d. P328,000

Q2. Company A had a machine with a carrying amount of P450,000. Company B had a delivery vehicle with a carrying amount of P300,000. Companies A and B exchanged the machine and vehicle, and Company B paid an additional P90,000 cash as part of the exchange. Assume that fair value of delivery vehicle is P420,000. If the exchange has commercial substance, how much gain or loss should be recorded by Company A?

a. P30,000 loss

b. P120,000 gain

c. P120,000 loss

d. P60,000 gain

Q3. Future, Inc. had the following bank reconciliation on March 31, 2022:

Balance per bank statement, 3/31/2022- P46,500

Add deposit in transit- P10,300

Less outstanding checks- P12,600

Balance per books, 3/31/2022- P44,200

Data per bank for the month of April 2022 follow: Deposits 58,400 Disbursements 49,700. All reconciling items on March 31, 2022, cleared the bank in April. Outstanding checks on April 30, 2022, totaled 7,000. There were no deposits in transit on April 30, 2022. What is the cash balance per books on April 30, 2022?

a. P55,200

b. P58,500

c. P52,900

d. P48,200