Output-Based-Learning-Project-in-Auditing-Theory-of-ABP5B-1

Truck 6 104

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600,0 00 102. 04/01/ 15 103. Truck 6 104. 1,000,0 00 105. 150,0 00 106. 05/02/ 15 107. Repainting of Truck 4 108. 27,000 109. 110. 06/30/ 15 111. Truck 7 112. 720,00 0 113. 114. 115. ACCUMULATED DEPRECIATION-DELIVERY EQUIPMENT 116. Date 117. Particulars 118. Debit 119. Credit 120. 12/31/ 13 121. Depreciation expense 122. 123. P300, 00 0 124. 12/31/ 14 125. Depreciation expense 126. 127. 300,0 00 128. 12/31/ 15 129. Depreciation expense 130. 131. 300,0 00 132. a. On July 1, 2014, Truck 3 was traded in for a new truck, Truck 5, costing P850,000; the selling party allowed a P50,000 trade in value for the old truck. b. On April 1, 2015, Truck 6 was purchased for P1,000,000; truck 1 and cash of P850,000 being given for the new truck. c. The depreciation rate is 20% by unit basis. d. Unit costs of trucks 1 to 4 is at P800,000 each. 133. 134. QUESTIONS: 135. Based on the above and the result of your audit, answer the following: 136. 137. How much is the net loss on disposal of trucks in 2014? a. P510,000 b. P430,000 c. P590,000 d. P230,000
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138. What is the loss on trade-in of Truck 1? a. P410,000 b. P290,000 c. P250,000 d. P150,000 139. What is the adjusted balance of the Delivery Equipment account as of December 31, 2015? a. P4,170,000 b. P2,650,000 c. P3,170,000 d. P3,370,000 140. The 2015 depreciation expense in understated by: a. P372,000 b. P252,000 c. P92,000 d. P292,000 141. Which of the following procedures would least likely lead the auditor to detect unrecorded fixed asset disposals? a. Examine insurance policies. b. Review repairs and maintenance expense. c. Review property tax files. d. Scan invoices for fixed asset additions. 142. 143. PROBLEM NO. 5 144. 145. Maybe company is constructing a building. Construction began on January 1 and was completed on December 31. Expenditures were P2,400,000 on March 1, P1,980,000 on June 1, and P3,000,000 on December 31. Maybe Company borrowed P1,200,000 on January 1 on a 5-year, 12% note to help finance construction of the building. In addition, the company had outstanding all year a 10%, 3-year, P2,400,000 note payable and an 11%, 4-year, P4,500,000 note payable. 146. 147. What are the weighted-average accumulated expenditures? a. P4,380,000 b. P3,155,000 c. P7,380,000 d. P3,690,000 148. What is the weighted-average interest rate used for interest capitalization purposes? a. 11% b. 10.85% c. 10.5% d. 10.65% 149. What is the avoidable interest for Maybe Company? a. P144,000 b. P463,808 c. P164,281 d. P352,208 150. What is the actual interest for Maybe Company? a. P879,000 b. P891,000 c. P735,000 d. P352,208 151. What amount of interest should be charged to expense? a. P382,000 b. P735,000 c. P526,792 d. P415,192
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152. 153. 154. PROBLEM NO.6 155. 156. The following information relates to the obligations of Lakers Corporation as of December 31, 2015. 157. Accounts payable for goods and services purchased on open account amounted to P35,000 at December 31, 2015. 158. On December 15, 2015, Lakers declared a cash dividend of P.05 per share, payable on January 12, 2016, to shareholders of record as of December 31, 2015. Lakers had 1 million ordinary shares issued and outstanding. 159. On December 31, 2015, Lakers entered into a six-year finance lease on a warehouse and made the first annual lease payment of P100,000. The incremental borrowing rate was 12%, and the interest rate implicit in the lease, which was known to Lakers, was 10%.
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