‘Problem 3 ‘The mutcrobile accoure ofthe Juraica Corporation spews a shown below st Decenbar 21, 2006 Vehicles VA Balance PRHOOO 77s CRO 30,000 vaoM 790 7A ves 284,000 | Your examination revesled thet P7,900 represents the 2006 registration fees of Jamaica's motor vehicles The charge of P2S¢,000 represents the invoice price ofa new SL Lancer Car, including a P4,000 camprshensive car insurance premnium fer one year ‘Ths crest of P30,000 represents the proceeds from the sale of Toyoea crew cab costing P120,000 and had been fuly deprecated 50% of the beginnung balance represets fully deprecated mctor vehicles ‘The company policy cn depreciation is detailed es follows: AW 20% sraigh line B-Noresidual value (C—Full m the year of acquisition and none in the year of disposition. Required: 1. Adjused balance of the mater vehicles accounts. 2. The correct 2006 depreciation expense for motor vehicles, 3. Adjusting entries. Problems On December 31, 2007, the CARP Company shows the fellowing account for machinery that it had assembled for its own use during 2007: Debits Cost of dismantling old machine P 1,000 ‘Raw maarial used in construction of new machine 60,000. ‘Labr in cnsrniction of new machine 40,000 (Cost of installation 3,000 ‘Materials spoiled in machine rial nms 4,500 Profit on construction 3,000 ‘Purchases on machine tools, 7,500 Credits: (Gash proceeds from sale of old machine P70 Depreciation for 2007 11,530 ‘An mslysis of the details in the account discloses the following: 1. The old machine which was removed inthe insulation of the new ane had been fully depreciated 2 Cash discount received on the payment of materials used in construction totaled P2,000 and this was reported in the purchases discount account The factory overhead account shows a balmce of 250,000 for the year ended December 31, 2007, this balance exceeds ‘ormnal overhead on regular plant activities by approximately P'17,500 and is attributable tomachine construction. ‘4 Aproti wes recognized on constuction forthe difference between cost incurred and the price at which the machine could hevebem purchase, ‘Machine tots have an eximated life of 3 years; machinery has an estimated life of ten years. The machinery was used for roduction beginning Septeraber 1, 2007 ce is Whel is dhe comet cost of the sew machneny ?