Journalize the following transactions: On January 1, 20X1, ABC Corp acquired a factory equipment. Purchase price...

Transcribed Image Text:

Journalize the following transactions: On January 1, 20X1, ABC Corp acquired a factory equipment. Purchase price was P90,000, freight was, P7,000, installation cost, P6,000 and training of staff to use the equipment was P2,500. The purchase was from Z Corporation, a supplier. A 12% 6-month note was issued to Z Corp. The equipment was estimated to be used for 5 years and expected to be sold at P3,000 at the end of its useful life. The depreciation method used by ABC was the straight-line method. Maintenance of the equipment for P2,000 were incurred on June 1. Betterment on the equipment for P16,000 to improve its output were incurred on June 30, 20X2. On Jan 1, 20X3, ABC decided to change its depreciation method to SYD and revised its estimated life into 4 years. Repairs on the equipment was done on Mar 31, 20X3 for P2,000. The equipment was sold for P30,000 on June 30, 20X4. Journalize the following transactions: On January 1, 20X1, ABC Corp acquired a factory equipment. Purchase price was P90,000, freight was, P7,000, installation cost, P6,000 and training of staff to use the equipment was P2,500. The purchase was from Z Corporation, a supplier. A 12% 6-month note was issued to Z Corp. The equipment was estimated to be used for 5 years and expected to be sold at P3,000 at the end of its useful life. The depreciation method used by ABC was the straight-line method. Maintenance of the equipment for P2,000 were incurred on June 1. Betterment on the equipment for P16,000 to improve its output were incurred on June 30, 20X2. On Jan 1, 20X3, ABC decided to change its depreciation method to SYD and revised its estimated life into 4 years. Repairs on the equipment was done on Mar 31, 20X3 for P2,000. The equipment was sold for P30,000 on June 30, 20X4.

Answer rating: 100% (QA)

To journalize the transactions for ABC Corp we will create a journal entry for each transaction Well start with the initial acquisition of the factory ... View the full answer