Solve the first task, with explanation 1. The following items have been extracted from the accounts of a company for the31 December 2020:endedyearDepreciation chargeProfit on sale of tangible non-current assets 5.0002$30,000Proceeds from sale of tangible non-current assets 20000Purchase of tangible non-current assets25,000If the carrying amount of tangible non-current assets was $110,000 on 31December 2019, what was it on 31 December 2020?2. On I January 2020 a company had plant and equipment with a cost of $150.000 andaccumulated depreciation thereon of $60,000. During the year ended 31 December 2020 thecost of plant additions was $30,000 and plant was disposed of with a cost of $20,000 for$18.000. This plant was bought on 30 September 2018.The depreciation policy is to make an allowance of 25% per annum on the declining balancewith a full charge in the year of acquisition and none in the vear of disposal.What is the depreciation charge for the vear ended 31 December 2020?3. Frederick. a wholesaler, has the following information relating to the year ended 31 March2020(a)Sales are made on both cash and credit terms.(b)At 1 April 2019 trade receivable were $40.000 and the receivables loss allowance was7.5% of this amount.(c)Included in opening receivable was an amount of $4.000 relating to Lean which wentinto liquidation on 2 January 2020(d)Credit sales during the vear were $195.600 and cash sales $87.800.(e)Cash received from trade receivables amounted to $192.300.(1)Apart from Lean's debt. $3.200 of other debts were found to be irrecoverable duringthe year.(g)The receivables loss allowance at the end of the year is to be 7.5% of year end tradereceivables.Required:Writethe ledger accounts for the above transactions.up

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1. The following items have been extracted from the accounts of a company for the year ended 31 December 2020: 2$ Depreciation charge Profit on sale of tangible non-current assets 5.000 30,000 Proceeds from sale of tangible non-current assets 20.000 Purchase of tangible non-current assets 25,000 If the carrying amount of tangible non-current assets was $110,000 on 31 December 2019, what was it on 31 December 2020?

1. The following items have been extracted from the accounts of a company for the year ended 31 December 2020: 2$ Depreciation charge Profit on sale of tangible non-current assets 5.000 30,000 Proceeds from sale of tangible non-current assets 20.000 Purchase of tangible non-current assets 25,000 If the carrying amount of tangible non-current assets was $110,000 on 31 December 2019, what was it on 31 December 2020?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter7: Operating Assets

Section: Chapter Questions

Problem 24CE

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