The property, plant and equipment section of San Miguel Corporation’s balance sheet at December 31, 2014 included the following items: Land P 2,500,000 Land improvements 560,000 Building 3,600,000 Machinery and equipment 6,600,000 During 2015 the following data were available to you upon your analysis of the accounts: Cash paid on purchase of land P10,000,000 Mortgage assumed on the land bought, including interest at 16% 16,000,000 Realtor’s commission 1,200,000 Legal fees, realty taxes and documentation expenses 200,000 Amount paid to relocate persons squatting on the property 400,000 Cost of tearing down an old building on the land 300,000 Amount recovered from the salvage of the building demolished 600,000 Cost of fencing the property 440,000 Amount paid to a contractor for the building erected 8,000,000 Building permit fees 50,000 Excavation expenses 250,000 Architect’s fee 100,000 Interest that would have been earned had the money used during the period of construction been invested in the money market 600,000 Invoice cost of machinery acquired 8,000,000 Freight, unloading, and delivery charges 240,000 Customs duties and other charges 560,000 Allowances, hotel accommodations, etc., paid to foreign technicians during instillation and test run of machines 1,600,000 Royalty payment on machines purchased (based on units produced and sold) 480,000 REQUIRED: Based on the above, compute for the following as of December 31, 2015: 1. Machinery and equipment 2. Total depreciable property, plant and equipment

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

The property, plant and equipment section of San Miguel Corporation’s balance sheet at December 31, 2014 included the following items: Land P 2,500,000 Land improvements 560,000 Building 3,600,000 Machinery and equipment 6,600,000 During 2015 the following data were available to you upon your analysis of the accounts: Cash paid on purchase of land P10,000,000 Mortgage assumed on the land bought, including interest at 16% 16,000,000 Realtor’s commission 1,200,000 Legal fees, realty taxes and documentation expenses 200,000 Amount paid to relocate persons squatting on the property 400,000 Cost of tearing down an old building on the land 300,000 Amount recovered from the salvage of the building demolished 600,000 Cost of fencing the property 440,000 Amount paid to a contractor for the building erected 8,000,000 Building permit fees 50,000 Excavation expenses 250,000 Architect’s fee 100,000 Interest that would have been earned had the money used during the period of construction been invested in the money market 600,000 Invoice cost of machinery acquired 8,000,000 Freight, unloading, and delivery charges 240,000 Customs duties and other charges 560,000 Allowances, hotel accommodations, etc., paid to foreign technicians during instillation and test run of machines 1,600,000 Royalty payment on machines purchased (based on units produced and sold) 480,000 REQUIRED: Based on the above, compute for the following as of December 31, 2015: 1. Machinery and equipment 2. Total depreciable property, plant and equipment

Definition Definition Financial market that deals in securities or assets that are short-term in nature. The money market is responsible for keeping up the liquidity of the businesses and the organizations. These securities are usually held for a period of 12 months or less and are issued by institutions that require cash or funds for their short-term cash flow requirements. The money market is regulated by the federal government.

Expert Solution

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Accounting for Property, Plant and Equipment

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions