auditing problems

PROBLEM NO. 3 You are engaged in making your second attnual examination of Indigo Company. The Machinery and Accumulated Depreciation accounts are shown below: U .' | -. I .3531 PARTICULARS m Balance Machine No. 23 Dismantling of Machine No. 3 Sale of Machine No. 3 .35]: PARTtCULARS\" (mm Balance 2304110. (I) 125] iation _m Your examination disclosed the following information: a The following adjusted balances appeared on December 3]. 1013 waiting papers: Machinery - P 500.0(1); Accumulated Depreciation - P 280.000. [1 The company has depreciated all items of machinery at [096 per annum. The oldest item owned is seven years old as of December 31. 20W. 1: It is the company's policy to take full year's depreciation in the year of acquisition and none of the year of disposition. d Machine No. 5. which was purchased on March I. 2015. at a cost of? 30.000. was sold on September I. 20l9 for P [0.000 cash. e Included in charges to Repairs and Maintenance account was invoice for installation of Machine No. 25. in the amount of? 33.000. Based on the information presented above and the result of your audit. answer the following: It How much is the loss on the sale of Machine 3? A \"3.000 B \"1.333 C P424000 D 90 12 The adjusting entry to correct the entry made in recording of Machine No. 3 will include a debit It) A. Loss on sale ofmachinery. P 42.0w B Accumulated depreciation. P 32.000 (3 Both a and b D No adjusting entry is necessary. 13 How much is adjusted balance of Machiney account asot' December 31. 20\"? A. \"44.000 B \"96.500 C \"05.000 D \"09.000 14 How much is the total depreciation expense on machinery for 2019'? A \"4.000 B \"0.500 C \"0.000 D \"3.125 IS How much is the balance ofthe Accumulated Depreciation - Machinery account as or December 3 l. 20m? A \"08.500 B \"01.458 C \"44.000 D \"40.500