Name: Kheny E.

Regoniel Date: 05/31/21

Year/Course/Section: 1/BSAccty/B Score:

Problem 15-1 (AICPA Adapted)

Warehouse Building Land

Appraised Value 3,000,000 2,000,000

Original Cost 2,800,000 1,400,000

Cost of Building Cost of Land

= 3/5 (5,400,000) = 2/5 (5,400,000)
= P3,240,000 = P2,160,000

Office building and the land on which it is located

Purchase Price 7,500,000

Mortgage 2,500,000
Total Cost 10,000,000

Cost of building Cost of land

= 10,000,000 (60%) = 10,000,000 (40%)

= P6,000,000 = P4,000,000

Acquired a tract of land in exchange for 25,000 shares of Trisha Company

Cost of land 25,000 x P120 = 3,000,000

Share Capital 25,000 x P100 = 2,500,000
Share Premium 3,000,000 – 2,500,000 = 500,000

1. What is the total cost of land? 2. What is the total cost of building?

2,160,000 3,240,000
4,000,000 6,000,000
3,000,000 P9,240,000
P9,160,000
Problem 15-6

What amount should Yola Company record as cost of the oil inventory received in
exchanged?

Carrying amount of oil inventory given 1,000,000

Add: Cash payment 300,000
Total cost of oil P1,300,000

Problem 15-9

What is the total cost of office equipment after the apportionment of factory overhead?

Materials 600,000
Direct labor 500,000
Overhead ( 15,000/50,000 x 1,200,000) 360,000
Total cost of equipment P1,460,000