Question 8.3 explanation please. (2 marks)profit.The carrying amount of a Billing's non-current assets was $200,000 at 1 August 20X0. During the yearended 31 July 20X1, the company sold non-current assets for $25,000 on which it made a loss of$5,000. The depreciation charge for the year was $20,000. What was the carrying amount ofnon-current assets at 31 July 20X1?8.2$150,000$155,000$160,000$180,000ACed(2 marksY purchased some plant on 1 January 20X0 for $38,000. The payment for the plant was correctlyentered in the cash book but was entered on the debit side of the plant repairs account.8.3Y charges depreciation on the straight line basis at 20% per year, with a proportionate charge in theyears of acquisition and disposal, and assuming no scrap value at the end of the life of the asset.How will Y's profit for the year ended 31 March 20X0 be affected by the error?Understated by $30,400Understated by $36,100Understated by $38,000Overstated by $1,900C(2 markB acquired a lorry on 1 May 20XO at a cost of $30,000. The lorry has an estimated useful life of fouryears, and an estimated resale value at the end of that time of $6,000. B charges depreciation on thestraight line basis, with a proportionate charge in the period of acquisition.8.4What will the depreciation charge for the lorry be in B's accounting period to 30 September 20X0?$3.000

When ever any fixed asset is purchased , then we should not take it as expenses in the year of…

ABCD Y purchased some plant on 1 January 20X0 for $38,000. The payment for the plant was correctli entered in the cash book but was entered on the debit side of the plant repairs account. 8.3 Y charges depreciation on the straight line basis at 20% per year, with a proportionate charge in years of acquisition and disposal, and assuming no scrap value at the end of the life of the asset. How will Y's profit for the year ended 31 March 20X0 be affected by the error? Understated by $30,400 Understated by $36,100 Understated by $38,000 Overstated by $1,900 (2

ABCD Y purchased some plant on 1 January 20X0 for $38,000. The payment for the plant was correctli entered in the cash book but was entered on the debit side of the plant repairs account. 8.3 Y charges depreciation on the straight line basis at 20% per year, with a proportionate charge in years of acquisition and disposal, and assuming no scrap value at the end of the life of the asset. How will Y's profit for the year ended 31 March 20X0 be affected by the error? Understated by $30,400 Understated by $36,100 Understated by $38,000 Overstated by $1,900 (2

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter3: Basic Accounting Systems: Accrual Basis

Section: Chapter Questions

Problem 3.23E: Adjustment for depreciation The estimated amount of depredation on equipment for the current year is...

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Adjustment for depreciation The estimated amount of depredation on equipment for the current year is $133,000. a. How is the adjustment recorded? Indicate each account affected, whether the account is increased or decreased, and the amount of the increase or decrease. b. If the adjustment in (a) was omitted, which items would be erroneously stated on (1) the income statement for the year and (2) the balance sheet as of December 31?
The net book value of a company's non-current assets was $200,000 at 1 August 20X8. During the year ended 31 July 20X9, the company sold non-current assets for $25,000 on which it made a loss of $5,000. The depreciation charge for the year was $20,000. What was the net book value of non-current assets at 31 July 20X9? A $150,000 B $155,000 C $160,000 D $180,000
Kolonas, Inc., sold equipment for $5,200 cash. The equipment cost of $74,100 and had accumulated depreciation through the date of the sale of $72,000. At the date of the sale, the journal entry to record the sale will have. A. a Gain on Sale of Equipment for $3,100. B. a Loss on Sale of Equipment for $2,100. C. a Loss on sale of Equipment for $3,100. D. A gain on sale of equipment for $2,100.
A company has depreciation of $250,000 for the year. Interest is $75,000 on an outstanding loan of $1,000,000. Employee pay, outside services, repairs, utilities, transportation, legal fees, and similar expenses are $2,150,000. Taxable income is $225,000. What is the gross income for the year? a. $3,700,000 b. $2,700,000 c. $2,625,000 d. $1,700,000.
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The income statement disclosed the following items for the current year: Depreciation expense $36,000 Gain on disposal of equipment 21,000 Net income 317,500 Balances of the current assets and current liabilities accounts changed between December 31, last year, and December 31, this year, as follows: Increase in accounts receivable $5,600 Decrease in inventory 3,200 Decrease in prepaid insurance 1,200 Decrease in account payable 3,800 Increase in income taxes payable 1,200 Increase in dividends payable 850 Required: Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments. Operating Activities Section
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