(Solved): 1. A company bought a telecommunication equipment for P280,000. Other expenses including installat ...

1. A company bought a telecommunication equipment for P280,000. Other expenses including installation amount to P35,000. The equipment is set to have 12 years with the salvage value at the end of life of P23,000. Determine the depreciation charge during the 5th year and the book value at the end of the 8th years by (a) declining balance method (b) straight-line method (c) sinking fund method with i=13% (d) double declining balance method and (e) SYD method. 2. In a business with financial years ended 31 December. A machine is bought for P420,000 on 1 January Year 1. The estimated useful life is 10years. In Year 5, the machinery has been sold for P280,000. Show the accounting entries for each year up to Year 5 using sinking fund at 18%. You are to show for each year up to 31 Dec Year 5: (a) Machinery account (b) Provision for depreciation (c) Disposal account (d) Profit and loss account (e) Balance sheet