Jilmar Company acquired a delivery truck and made payment of P2,870,000 analyzed as follows: Price...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Jilmar Company acquired a delivery truck and made payment of P2,870,000 analyzed as follows: • Price of truck - P2,500,000 • Charge for extra equipment - P150,000 • Value added tax (recoverable) - P300,000 • Insurance for one year - P100,000 • • Motor vehicle registration - P20,000 Trade in value of old truck - P2,000,000 Cash paid - P2,870,000 The cost of the old truck was P1,500,000 with carrying amount of P400,000 and fair value of P350,000. 1. What is the cost of the new truck in the exchange? 2. What amount should be recognized as loss on exchange? Jilmar Company acquired a delivery truck and made payment of P2,870,000 analyzed as follows: • Price of truck - P2,500,000 • Charge for extra equipment - P150,000 • Value added tax (recoverable) - P300,000 • Insurance for one year - P100,000 • • Motor vehicle registration - P20,000 Trade in value of old truck - P2,000,000 Cash paid - P2,870,000 The cost of the old truck was P1,500,000 with carrying amount of P400,000 and fair value of P350,000. 1. What is the cost of the new truck in the exchange? 2. What amount should be recognized as loss on exchange?
Expert Answer:
Related Book For
Financial Accounting
ISBN: 978-0078025549
3rd edition
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann
Posted Date:
Students also viewed these accounting questions
-
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
On January 1, 2014, Shannon Company completed the following transactions (assume a 10 percent annual interest rate): a. Bought a delivery truck and agreed to pay $60,000 at the end of three years. b....
-
Bruno Corp. has decided to expand its operations. The bookkeeper recently completed the following statement of financial position in order to obtain additional funds for expansion: Instructions (a)...
-
(a) Show that the spectral density of the radiant energy flux the arrives in the solid angle d is cu cos d/4, where is the angle the normal to the unit area makes with the incident ray, and u is...
-
Andrew is sentenced to death for torture. In Andrew's state, there is an "eye-for-an-eye" statute that mandates punishment that mimics the crime the defendant committed. Pursuant to this statute,...
-
Leno and Letterman, CPAs, offer three ^es of services to clients: auditing, tax, and computer consulting. Based on experience and projected growth, the follow ing billable hours have been estimated...
-
An artificial kidney is a device that removes water and waste metabolites from blood. In one such device, the hollow fiber hemodialyzer, blood flows from an artery through the insides of a bundle of...
-
Your client, Mr. Bailey, has asked you for some advice. He would like to know how much he can contribute to his RRSP in the current year without over contributing. Mr. Bailey has a carry forward...
-
The number of auto accidents in Athens, Ohio, is related to the regional number of registered automobiles in thousands (X), alcoholic beverage sales in $10,000s (X), and rainfall in inches (X3)....
-
1) Use THREE different methods to create the following row vector. 6.9000 5.7000 4.5000 3.3000 2) Type a Matlab expression to create a column vector that has values from -30 to 40 in step of 0.5. 3)...
-
The shampoo brand Pattern by Trace Ellis Ross has a unique set of ingredients and a distinct packaging design that helps the brand stand out. These decisions are part of what the strategy for the...
-
A sample of 0.20 moles of diatomic perfect gas at 320 K undergoes an isothermal expansion from 2 to 8 . Make a P V diagram with the appropriate units. Calculate the work done by the gas during the...
-
Osborn Manufacturing uses a predetermined overhead rate of $18.60 per direct labor-hour. This predetermined rate was based on a cost formula that estimates $230,640 of total manufacturing overhead...
-
Problem 10: A 2.2-cm-tall object is placed 4.9 cm in front of a convex mirror with radius of curvature 21 cm. Part (a) What is the image distance, in centimeters? Include its sign. Problem 11: A...
-
3. Calculate the total particulate mass concentration (g/m3) of the diesel engine exhaust aerosol when the emissions were found by measuring two particle modes (you can assume the particles are...
-
Imagine you've been asked to negotiate in one of the countries . Select four of the dimensions that are most relevant or interesting to you and a) Describe how these differences will likely affect...
-
The manager for retail customers, Katie White, wants to hear your opinion regarding one business offer she has received from an entrepreneur who is starting a mobile phone app called Easy Money. The...
-
Justin Investor, Inc., purchases $ 180,000 of 8% bonds from M. R. Bonds Company on January 1. Management intends to hold the debt securities to maturity. For bonds of similar risk and maturity, the...
-
Which cost flow assumption generally results in the highest reported amount for ending inventory when inventory costs are rising? Explain.
-
Wi-Fi, Inc., has the following selected transactions during the year. 1. Issues $20 million in bonds. 2. Purchases equipment for $80,000. 3. Pays a $20,000 account payable. 4. Collects a $15,000...
-
Explain why accrual earnings and cash flow from operating activities are different amounts Which of the two numbers do you think is more reliable? Give an example of where the accrual amount creates...
-
According to the SEC Advisory Committee on Improvements to Financial Reporting, the determination of materiality with respect to financial statement disclosures should be based on an evaluation of...
-
Can earnings management be an ethical practice? Discuss why or why not. Give an example of when it might be ethical.
Study smarter with the SolutionInn App