PROBLEM 1

Equipment was purchased on June 1, 2017 for 573,000. It is estimated that it could be sold for 123,000 at the end of itsuseful life. Accumulated depreciation on the 2018 trial balance shows an amount of 105,000, while depreciation expense on the 2018 trial balance shows an amount of 0.

1. How much should be the adjusted amount of accumulated depreciation in the 2018 trial balance?
2. How long is the estimated useful life in months?

PROBLEM 2

A Co. purchased an equipment on January 1, 2018, made a 25% down payment, and the balance to be paid in 3 equal annual installments beginning at the end of the current year. The equipment has a useful life of 10 years, and it was expected to be sold for P222,230 once its useful life ends. On December 31, 2019, the accumulated depreciation on the equipment is P1,555,554.

1. How much is the cost of the equipment?
2. How much is depreciation per month?
3. On December 31, 2019, how much is the carrying value of the equipment?
4. On December 31, 2019, how much is remaining accounts payable?