Required:
-Audit schedule
-journal entries
A. Composition of these account as of December 31, 2018 are as follows: Estimated Life Cost of Assets Accumulated Depreciation Particular Land Building Machineries Equipments Total 50 years 15 years 10 years P 920,000.00 7,000,000.00 - 1,200,000.00 500,000.00 P 9.620,000.00 P 1,570,000.00 270,000.00 120,000.00 P 1.960,000.00 B. During 2018, the following transactions took place affecting PPE: The machinery account includes a machine assembled by Jetro Corp. On December 31, 2019, Jetro presented a detailed of the complete transaction on said assembled machine. Machinery and Equipment (Job Order #62) Cost of dismantling old machine P 570 1 Cash proceeds from sale of old Raw materials used in construct- ion of new machine equipment 13,600 Labor in the construction of new 1 Depreciation for 2019 P 500 machine (10% of P34,620) 9,8001 3.462 Cost of installation 1,400 1 Materials spoiled in machine trial 600 1 Profit on construction 6,900 1 Purchase of machine tools 2,2501 An analysis of the details in the account discloses the following: a. The old machine, which was removed upon the installation of the new one, had been fully depreciated. b. Cash discounts received on the payments for materials used in construction totaled P400 and these were reported in the purchases discount account. c. The factory overhead account shows a balance of P52,000 for the year ended December 31, 2019, this balance exceeds normal overhead on regular plant activities by approximately P2,900 and is attributable to machine construction. d. A profit was recognized on construction for the difference between costs incurred and the price at which the machine could have been purchased. e. Machine tools have an estimated life of 3 years; machinery has an estimated life of 10 years. The machinery was used for warehousing. B. Jetro uses a straight line method of depreciating plant, property and equipment. Verification shows that the last quarter depreciation for machineries was not recorded. C. Jetro assumed that abovementioned assets have no residual value. D. Building fixtures for additional movable display racks in the amount of P 500,000 is included in the cost of the building. Said display racks were finished February, 2018. E. The building was pledged to secure the mortgage payable. A. Composition of these account as of December 31, 2018 are as follows: Estimated Life Cost of Assets Accumulated Depreciation Particular Land Building Machineries Equipments Total 50 years 15 years 10 years P 920,000.00 7,000,000.00 - 1,200,000.00 500,000.00 P 9.620,000.00 P 1,570,000.00 270,000.00 120,000.00 P 1.960,000.00 B. During 2018, the following transactions took place affecting PPE: The machinery account includes a machine assembled by Jetro Corp. On December 31, 2019, Jetro presented a detailed of the complete transaction on said assembled machine. Machinery and Equipment (Job Order #62) Cost of dismantling old machine P 570 1 Cash proceeds from sale of old Raw materials used in construct- ion of new machine equipment 13,600 Labor in the construction of new 1 Depreciation for 2019 P 500 machine (10% of P34,620) 9,8001 3.462 Cost of installation 1,400 1 Materials spoiled in machine trial 600 1 Profit on construction 6,900 1 Purchase of machine tools 2,2501 An analysis of the details in the account discloses the following: a. The old machine, which was removed upon the installation of the new one, had been fully depreciated. b. Cash discounts received on the payments for materials used in construction totaled P400 and these were reported in the purchases discount account. c. The factory overhead account shows a balance of P52,000 for the year ended December 31, 2019, this balance exceeds normal overhead on regular plant activities by approximately P2,900 and is attributable to machine construction. d. A profit was recognized on construction for the difference between costs incurred and the price at which the machine could have been purchased. e. Machine tools have an estimated life of 3 years; machinery has an estimated life of 10 years. The machinery was used for warehousing. B. Jetro uses a straight line method of depreciating plant, property and equipment. Verification shows that the last quarter depreciation for machineries was not recorded. C. Jetro assumed that abovementioned assets have no residual value. D. Building fixtures for additional movable display racks in the amount of P 500,000 is included in the cost of the building. Said display racks were finished February, 2018. E. The building was pledged to secure the mortgage payable
