Prepare journal entriesfor the ff transactions of Company A during the year

1/ Acquired a machine with an invoice price of P3,000,000 subject to a cash discount of 10% which was not taken, and freight cost of P35,000. The entity incurred P50,000 in removing the old machine prior to the installation of the new one. Machine supplies were acquired at a cost of P150,000.

2/ During the early part of the current year, the entity purchased a machine for P500,000 down and4 monthly installments of P1,250,000M. The cash price of the machine was P4,700,000

3/ At the beginning of the current year, the entity purchased a machine for P2,000,000 in exchange for a non-interest bearing note requiring 4 payments of P500,000. The first payment was made at the end of the current year.

4/ At the beginning of the current year, the entity acquired a machine by issuing a 4-year,non-interest bearing note for P2,000,000

The implicit rate of interest for the notes in items 3 and 4 is 10%.

5/ The Company made the ff individual cash purchases:

Land and Building6,000,000.00

Machinery and office equipment1,800,000.00

Delivery equipment500,000.00

An appraisal disclosed the following fair values:

Land1,000,000.00

Building3,000,000.00

Machinery800,000.00

Office Equipment400,000.00

Delivery Equipment350,000.00

6/ The Company acquired the assets of another entity with the ff fair values:

Land1,000,000.00

Building5,000,000.00

Machinery2,000,000.00

The entity issued 60,000 shares with P100 par value in exchange. The share had a quoted price of P150 on the date of purchase of the property.

7/ Received a parcel of land in Davao City from a philanthropist as an inducement to locate a plant in the city. The land has a fair value of P1,500,000

8/ During the year, the Company exchanged a truck with a carrying amount of P1,200,000 and a fair value of P2,000,000 for a truck and P200,000 cash. The fair value of the truck received was P1,800,000 The cash flows from the new truck are not expected to be significantly different from the cash flows of the old truck.

9/ During the year, the Company paid P100,000 and exchanged inventory which has a carrying value of P2,000,000 and a fair value of P2,100,000 for other inventory in the same line of business with fair value of P2,200,000.

10/ The Company traded a delivery truck for a newer model with a dealer.

Old equipment:

Original cost1,000,000.00

Accumulated depreciation600,000.00

New equipment:

List price1,600,000.00

Cash price without trade-in1,400,000.00

Cash payment with trade-in980,000.00

At the beginning of the current year, Newman Company purchased a parcel of land for P1,000,000.

An old building with a carrying amount of P150,000 on the property was demolished and construction began on a new building which was completed at year-end.

Demolition of old building100,000.00

Architect fee175,000.00

Legal fee for title investigation and purchase contract25,000.00

Construction cost5,450,000.00

Salvaged materials resulting from the demolition50,000.00

What would be the cost of the land and building if:Answer problems in bold

1.( no new building was constructed)

2/ Land was purchased as a site for a new building

a) old building is unusable

b) old building is usable

i) new building will be used as the Company's HQ

ii) new building will be leased out

iii) new building will form part of inventory

At the beginning of the current year, Company A reported the ff PPE:

Land3,500,000.00Land improvements900,000.00Building6,000,000.00Equipment1,500,000.00

The ff transactions occurred during the current year:

1/ A tract of land was acquired for P1,250,000 and intended definitely for use as a future building site.

2/ A plant facility consisting of land and building was acquired from another entity in exchange for 100,000 Company A shares. On the acquisition date, the share had a closing market rate of P45 on the stock exchange. The plant facility was carried at P1,000,000 for land and P3,000,000 for the building at the date of exchange. Current appraised values for the land and building, respectively, are P1,200,000 and P2,400,000.

3/ Expenditures totaling P750,000 were made in early part of the year for new parking lot, street and sidewalk at the entity's various plant locations. These expenditures had an estimated useful life of 15 years.

4/ Equipment was purchased at a cost of P3,000,000. Freight and unloading charge of P50,000, and installation cost of P350,000 were incurred.

5/ At the middle of the current year, an equipment was sold for P175,000. The original cost of the equipment acquired 2 years ago was P500,000. The equipment was depreciated on the straight-line basis over an est. useful life of 5 years with no residual value.

Compute for the following at year-end

a) Land

b) Land improvements

c) Building

d) Equipment

Company A received a government grant of P2,000,000 related to a factory building that it purchased in January 2020 from an industrialist identified by the government.

If the entity did not purchase the building, which was located in the slums of the city, it would have been repossessed by the government agency.

The entity purchased the building for P12,000,000. The useful life of the building is 5 years with no residual value.

On January 1, 2021, the entire amount of the grant became repayable by reason of noncompliance with conditions attached to the grant.

Prepare journal entries assuming the gov't grant is accounted for using:

1/ Deferred income approach

2/ Deduction from asset approach