EXERCISES14 The following data for the property and equipmen

EXERCISES-14. The following data for the property and equipment of BINONDO TRADERS as of the end of its current accounting period on December 31, 2007 are available: Building, acquired April 1, 2005, estimated life is 40 years? estimated scrap value is 5% of cost; cost - P5, 000,000. 2. Office Equipment, acquired January 1, 2005, estimated life is estimated scrap value is P5,000; cost P65, 000 3. Furniture and fixtures: acquired January 1, 2005, estimated annual depreciation rate is 10%; no estimated scrap value: cost P70, 000 a. pg. 36

Solution

Answer - Part -1 Deprec

Computation of Depreciation :

Part - B Journal Entry for Depreciation

Depreciation A/c                 Dr                                      P182,850

To Accumulated Dep on Building                                                  118750

To Accumulated Dep on Office equipment                                   12000

To Accumulated Dep on Furniture                                                  14600

To Accumulated Dep on Delivery Truck                                          37500

Property / Equipment	Cost	Accumulated Depreciation Balance Jan. 1 2005	Depreciation 2007	Accumulated Depreciation Dec, 31,2007	Book Value Dec. 31 , 2007
Building	50,00,000.00	-	1,18,750.00	3,26,562.50	46,73,437.50
Office equipment	65,000.00	-	12,000.00	36,000.00	29,000.00
Furniture/
Equipment
a.	70,000.00		7,000.00	21,000.00	49,000.00
b.	80,000.00		7,600.00	12,666.67	67,333.33
Delivery Truck	5,00,000.00		37,500.00	4,62,500.00	37,500.00