Assessment No. 3-Midterm - Exam Sheet
Assessment No. 3-Midterm - Exam Sheet
I. Instruction:
a. For those questions without choices kindly type your answer in the given box. If the answer
requires numbers, follow the necessary format, for example the correct answer is P1,000,000,
your answer should be 1,000,000
III. Multiple Choice: Shade the circle of the letter of your corresponding answer
7. On July 1, 2021, Markwell Company acquired equipment. Markwell paid $160,000 in cash on July 1, 2021,
and signed a $640,000 noninterest-bearing note for the remaining balance which is due on July 1, 2022. An
interest rate of 5% reflects the time value of money for this type of loan agreement. (PV of $1, PVA of $1)
(Use appropriate factor(s) from the tables provided.)
13. The property, plant and equipment section of Naruto Corporation’s balance sheet at December 31, 2021
Land P 2,500,000
Building 3,600,000
During 2022 the following data were available to you upon your analysis of the accounts:
Interest that would have been earned had the money used during the period of construction
Allowances, hotel accommodations, etc., paid to foreign technicians during instillation and test
480,000
14. Compute for the amount of Land Improvement as of December 31, 2022? 1,000,000
16. Compute for the amount of Machinery and Equipment as of December 31, 2022?
17,000,000
17. Compute the total amount of depreciable assets as of December 31, 2022? 29,000,000
Dividends 100,000
A portion og the building site had been temporarily used by Sasuke to operate a car park while
the building was being constructed. A total of P325,000 was earned by Sasuke from this
incidental activity