Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following information relates to the extract of BBS Bank Limited as at 1 January 2021 and the year end for BBS Limited is 31st

The following information relates to the extract of BBS Bank Limited as at 1 January 2021 and the year end for BBS Limited is 31st December yearly.

Buildings cost P2,000 Land cost P1,000 Buildings accumulated depreciation P420 PPE cost P80 PPE accumulated depreciation P48

The depreciation policy for BBS limited is as follows:

a. Land is not depreciated

b. Buildings are depreciated a 2% yearly on cost using straight line method of depreciation.

c. PPE depreciated on reducing balance at a rate of 25%

d. Full year depreciation charged on all new acquisitions and none in the year of disposal on all assets.

The following information relates to transactions that took place during the year to 31st December 2021.

I. 1 st March 2021 Computers costing P16,000 and NBV of P4,000 were sold for P6,000.

II. 10th June 2021 Purchased new computers at P32,000to to replace old ones and we give as part exchange at a cost of P8,000 and their original value was P16,000 with a net book value of P4,000. Cash paid was only P24,000.

III. 8 th October 2021 the building was extended with a conferences room at a cost of P100,000.

IV. Land was revalued upward with P400,00 based on prevailing market prices.

Required.

Prepare extracts of the PPE section in the financial statements with explanatory notes as at 31 December 2021 for BBS Limited

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Markets And Institutions

Authors: Anthony Saunders, Marcia Cornett

4th Edition

0077262379, 978-0077262372

More Books

Students also viewed these Finance questions

Question

b. Did you suppress any of your anger? Explain.

Answered: 1 week ago