PROBLEM N0. 8 You requested a depreciation schedule for Semitrucks of Matador Manufacturing Company showing the additions. retirements. depreciation and other data affecting the income of the Company in the 4-year period 2003 to 2006, inclusive. The Semitrucks account consists of the following as of January 1, 2003: Truck No. 1 purchased Jan. 1, 2000, cost P 180,000 Truck No. 2 purchased July 1, 2000, cost 220,000 Truck No. 3 purchased Jan. 1, 2002, cost 300,000 Truck No. 4 purchased July 1. 2002, cost 240,000 P 940,000 The Semitrucks Accumulated Depreciation account previously adjusted to January 1, 2003. and duly entered to the ledger. had a balance on that date of P302,000 (depreciation on the 4 trucks from respective date of purchase, based on fiveyear life, no salvage value). No charges have been made against the account before January 1, 2003. Transactions between January 1, 2003, and December 31, 2006, and their record in the ledger were as follows: July 1, 2003 Truck No. 3 was traded for larger one (No. 5), the agreed purchase price of which was P340000. Matador Mfg. Co. paid the automobile dealer P150,000 cash on the transaction. The entry was debit to Semitrucks and a credit to cash, P150,000. Jan. 1, 2004 Truck No. 1 was sold for P35,000 cash; entry debited Cash and credited Semitrucks, P35,000. July 1, 2005 A new truck (No. 6) was acquired for P360,000 cash and was charged at that amount to Semitrucks account. (Assume truck No. 2 was not retired.) July 1, 2005 Truck No. 4 was damaged in a wreck to such an extent that it was sold as junk for P7,000 cash. Matador Mfg. Co. received P25,000 from the insurance company. The entry made by the bookkeeper was a debit to cash, P32,000, and credits to Miscellaneous Income, P1000 and Semitrucks P 25,000. Entries for depreciation had been made for the close of each year as follows: 2003, P203000: 2004, P211000; 2005, P244,500: 2006, P273000. AP-59 FinPB