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