The cost of the equipment is PHP25,000. It was estimated to have a useful life of...

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The cost of the equipment is PHP25,000. It was estimated to have a useful life of five years. It is estimated that after five years, the office equipment can be sold at a scrap value of PHP1,000. Example Answer: Depreciation expense General Journal Date 2/29/16 Depreciation Expense Account Title and Explanation Ref Debit 200 Credit Accumulated Depreciation-Office Eqpt Annual Depreciation (25,000-1,000) / 5 PHP4,800 1. Pedro Reyes purchased a delivery vehicle on January 1, 2016, amounting to PHP250,000. It is estimated that the vehicle will be useful for 10 years. The vehicle can be sold for PHP10,000 at the end of its useful life. If the accounting period being reported by Pedro is one (1) year from January - December 2016, how much is the depreciation expense? 200 2. On March 18, 2020, Juan repaired the oven of Pedro for PHP5,000. Pedro was on vacation so he could not pay Juan. He told Juan that he will pay for their services on April 1, 2021. Juan has already earned the PHP5,000 but was not paid as of the end of March 2020. 3. On September 29, 2020, Juan received the internet bill for the month of September amounting to PHP2,500. Juan will pay this bill in October 2020. The internet bill represents the cost incurred for September. 4. On July 15, 2020, Juan entered into a contract with Marites to maintain the computers of Marites for two months starting on July 15, 2020 up to September 15, 2020. On the same date, Marites paid the total contract amount of PHP40,000 in full. The cost of the equipment is PHP25,000. It was estimated to have a useful life of five years. It is estimated that after five years, the office equipment can be sold at a scrap value of PHP1,000. Example Answer: Depreciation expense General Journal Date 2/29/16 Depreciation Expense Account Title and Explanation Ref Debit 200 Credit Accumulated Depreciation-Office Eqpt Annual Depreciation (25,000-1,000) / 5 PHP4,800 1. Pedro Reyes purchased a delivery vehicle on January 1, 2016, amounting to PHP250,000. It is estimated that the vehicle will be useful for 10 years. The vehicle can be sold for PHP10,000 at the end of its useful life. If the accounting period being reported by Pedro is one (1) year from January - December 2016, how much is the depreciation expense? 200 2. On March 18, 2020, Juan repaired the oven of Pedro for PHP5,000. Pedro was on vacation so he could not pay Juan. He told Juan that he will pay for their services on April 1, 2021. Juan has already earned the PHP5,000 but was not paid as of the end of March 2020. 3. On September 29, 2020, Juan received the internet bill for the month of September amounting to PHP2,500. Juan will pay this bill in October 2020. The internet bill represents the cost incurred for September. 4. On July 15, 2020, Juan entered into a contract with Marites to maintain the computers of Marites for two months starting on July 15, 2020 up to September 15, 2020. On the same date, Marites paid the total contract amount of PHP40,000 in full.

Answer rating: 100% (QA)

The annual depreciation expense for the delivery vehicle is 250000 10000 10 PHP24000 Therefore the d... View the full answer