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    Benjo Lopez Co

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    novy
    Benjo Lopez Co. is preparing its financial statements for the year ended June 30, 2018. The document provides brought forward balances for non-current assets as of June 30, 2017 and details transactions during the year ended June 30, 2018 relating to land, property, fixtures and fittings, intangibles, and a new retail property. It asks for the carrying amounts of specific non-current assets as of June 30, 2018 and the total depreciation/amortization expense for the year then ended.

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    Benjo Lopez Co

    Uploaded by

    novy
    939 views2 pages
    Benjo Lopez Co. is preparing its financial statements for the year ended June 30, 2018. The document provides brought forward balances for non-current assets as of June 30, 2017 and details transactions during the year ended June 30, 2018 relating to land, property, fixtures and fittings, intangibles, and a new retail property. It asks for the carrying amounts of specific non-current assets as of June 30, 2018 and the total depreciation/amortization expense for the year then ended.

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    Benjo Lopez Co. is preparing its financial statements for the year ended June 30, 2018. The document provides brought forward balances for non-current assets as of June 30, 2017 and details transactions during the year ended June 30, 2018 relating to land, property, fixtures and fittings, intangibles, and a new retail property. It asks for the carrying amounts of specific non-current assets as of June 30, 2018 and the total depreciation/amortization expense for the year then ended.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    939 views2 pages

    Benjo Lopez Co

    Uploaded by

    novy
    Benjo Lopez Co. is preparing its financial statements for the year ended June 30, 2018. The document provides brought forward balances for non-current assets as of June 30, 2017 and details transactions during the year ended June 30, 2018 relating to land, property, fixtures and fittings, intangibles, and a new retail property. It asks for the carrying amounts of specific non-current assets as of June 30, 2018 and the total depreciation/amortization expense for the year then ended.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    Benjo Lopez Co.

    is a manufacturer and retailer of electronic equipment and owns a

    number of properties from which it operates. Benjo Lopez Co. is preparing its draft

    financial statements for the year ended 30 June 2018 and the following brought forward

    information has been collected in readiness for the preparation of information in relation

    to non-current assets.

    As of 30 June

    2017

    Cost

    (Phil. Pesos)

    Accumulated

    Deprn/Amort

    Depreciation/

    Amortization

    Method

    Land 1,500,000 1,360,000 n/a

    Property 3,400,000 126,000 4% pa straight line

    Fixtures and fittings 360,000 101,500 20% pa straight line

    Intangible - brand 290,000 10 year life

    Note: pa means per annum

    a) On 1 January 2017 Benjo Lopez Co acquired a piece of land (included above)

    on which it planned to build a new retail unit. Benjo Lopez Co built the new retail

    property during the year ended 30 June 2018 and opened it on 30 June 2018

    having incurred the following costs during the year:

    Site preparation costs 90,000

    Construction costs 1,200,000

    General overheads 30,000

    Staff relocation costs 10,500

    Professional fees 7,800

    Launch event 5,200

    1,343,500
    b) On 1 July 2017 fixtures and fittings which had cost P32,000 on 1 July 2015 were

    sold for cash, generating a profit on disposal of P1,200. On 1 April 2019 Benjo

    Lopez Co acquired new fixtures and fittings for P78,000.

    c) On 1 July 2017 Benjo Lopez Co carried out a review of its depreciation methods.

    As part of this review, it was decided that a 15% pa reducing balance policy for

    fixtures and fittings would now be more appropriate.

    d) During the current year Benjo Lopez Co incurred P96,000 of research and

    development costs on an electronic integrated kitchen appliance. Costs were

    incurred evenly between 1 September 2017 and 20 February 2018 and on 31

    October 2017 the new integrated appliance was judged to be economically

    viable. The appliance was launched on 1 April 2018 and has been selling well.

    Benjo Lopez Co expects to be able to sell it for four years.

    Questions:

    Based on the above and the result of your audit, you are to provide the answers to the

    following:

    1. How much is the total carrying amount of the property as of 30 June 2018?

    2. How much is the total carrying amount of the fixtures and fittings as of 30 June

    2018?

    3. How much is the total cost of the new retail outlet in 2018?

    4. How much is the total carrying amount of the intangibles as of 30 June 2018?

    5. How much is the total depreciation and amortization expense for the year ended

    30 June 2018?

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