just answer 14-20, audit on ppe
Case 3 JEREMY MANUFACTURING COMPANY'S accounts at December 31, 201D, included the following balances: Machinery (at cost) P273,000 Accumulated depreciation - Machinery 144.600 Vehicles (at cost; purchased November 21, 201 C) 140.400 Accumulated depreciation Vehicles 55,968 Land (at cost; purchased October 25. 201A) 243,000 Building (at cost; purchased October 25, 201A) 557,160 Accumulated depreciation - Building 85,842 Details of machines owned at December 31. 201 D are as follows: Wm- Useful Llfa Rasldual Value _ Oct. 7 201A P129 000 P? 500 . Feb. 4 201B 144000 m 9 000 Additional Information: - Jeremy calculates depreciation to the nearest month and uses straight-line depreciation for all depreciable assets except vehicles, which are depreciated on the diminishing balance at 40% per annum. - Jeremy's financial year-end is December 31. u The vehicles account balance reects the total paid for two (2) identical delivery vehicles, each of which cost P711200. - 0n acquiring the land and building, Jeremy estimated the building's useful life and residual value at 20 years and P15,000 respectively. The following transactions occurred from January 1, 201E: 201 E January 3 Bought a new machine (Machine 3) for a cash price of P171,000. Freight charges of P1,320 and installation costs of P5280 were paid in cash. The useful life and residual value were estimated at five (5) years and P12,000, respectively. June 22 Bought a second-hand vehicle for P45,600 cash. Repainting costs of P1965 and four (4) new tires costing P1,035 were paid for in cash. 07 Task Performance 1 \"Property of ST! Page 2 of 3 ll-l BMZOOB August 14 Exchanged machine 1 for office furniture that had a fair value of P37,500 at the date of exchange. The fair value of machine 1 at the date of exchange was P34,500. The ofce furniture originally cost P1OB,000 and to the date of exchange, had been depreciated by P72,300 in the previous owner's books. Jeremy estimated the office fumiture's useful life and residual value at eight (8) years and P1.620, respectively. December 31 Recorded depreciation. 201 F April 30 Paid repairs and maintenance on the machinery amounting to P2,874. May 25 Sold one (1) of the vehicles bought on November 21, 2010 for P19,800 cash. June 26 Installed a fence around the property at the cost of P1B,000. The fence has an estimated useful life of 10 years and no residual value. (Debit the cost to a Land Improvements asset account) December 31 Recorded depreciation. 2016 January 5 Overhauled machine 2 at the cost of P36,000, after which Jeremy estimated its remaining life at one additional year and revised its residual value to P15.000. June 20 Traded in the remaining vehicle bought on November 21, 2010, for a new vehicle. A trade-in allowance of P11,100 was received, and P69,900 was paid in cash. October 4 Scrapped the vehicle bought on June 22, 201E, as it had been badly damaged in a traffic accident that it was not worthwhile repairing it. December 31 Recorded depreciation. Based on the preceding information, compute the foffowing: 11. Machine 3, purchased on January 3, 201E, should be recorded at 12. The second-hand vehicle purchased on June 22, 201E should be recorded at 13. The office furniture acquired on August 14, 201E should be recorded at 14. The gain (loss) to be recognized on the exchange of machine 1 for office furniture on August 14, 201E should be 15. Total depreciation for 201E is 16. The gain or loss to be recognized on the sale of the vehicle on May 25, 201 F is 17. The total depreciation expense for 201F is 18. After the overhaul, machine 2's revised annual depreciation is 19. What is the cost of the new vehicle acquired on June 20, 2016? 20. The total depreciation expense for 201G is
