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Accounting 502 Finals Part1 F
Accounting 502 Finals Part1 F
2
ACCOUNTING 502|QUIZ 1 MAY 6, 2018
Requirements:
Compute for the following
1. Initial value of Computer Software
2. Carrying value of Patent as of December 31, 2014
3. Total expense related to the franchise
4. Total expense for 2014
PROBLEM II
Sakura Company has been monitoring the value of his
favorite machinery that he uses for his manufacturing
operations. The machinery was acquired on January 1,
2010 for a price of P380,600. The Company should have
availed of P20,000 discount if they have paid it on time
but such was forfeited by the seller due to late payment.
Freight charges of P17,000 and installation costs of
P120,000 were also paid. Sakura tested the machinery
and incurred P5,000 for the sample products and sold it
for P2,600. Salvage value was estimated to be P50,000
and useful life is 10 years.
Requirements:
5. Compute for the initial cost of machinery
6. Compute for the depreciation expense for 2012
7. Compute for the gain on remeasurement for 2015
8. Compute for the depreciation expense for 2016