c) Suppose Wilfred Trading Company only started operation on 1 December 2018, compute the followings according to the adjusted trial balance: i) Years of useful life for Equipment all purchased on the first day of business, with straight-line depreciation and residual value of $3,000, with partial year depreciation rounded to the nearest full month; ii) The depreciation expense for the year ended 2019 if double declining balance is used, with residual value of $3,000 and partial year depreciation rounded to the nearest full month; iii) Why may Wilfred Trading Company choose the double declining balance method? Name one more depreciation method and explain the difference between this and the other methods. d) Compute Cash flow from financing activities for the year ended 31 December 2019 assuming the following balance at 31 December 2018: $10,000 $12,000 Notes Payable Share Capital Dividend Payable . Interest Payable $100 ..... .... (For the purpose of part (ii), payments of interest and dividend are treated as financing activities.) The 6-year $10,000 notes payable was issued on 1 December 2018, with interest payable annually on December 1. Prepare all journal entries that should be prepared in relation to the notes payable and interests in 2019. Show the date of each journal entry.
c) Suppose Wilfred Trading Company only started operation on 1 December 2018, compute the followings according to the adjusted trial balance: i) Years of useful life for Equipment all purchased on the first day of business, with straight-line depreciation and residual value of $3,000, with partial year depreciation rounded to the nearest full month; ii) The depreciation expense for the year ended 2019 if double declining balance is used, with residual value of $3,000 and partial year depreciation rounded to the nearest full month; iii) Why may Wilfred Trading Company choose the double declining balance method? Name one more depreciation method and explain the difference between this and the other methods. d) Compute Cash flow from financing activities for the year ended 31 December 2019 assuming the following balance at 31 December 2018: $10,000 $12,000 Notes Payable Share Capital Dividend Payable . Interest Payable $100 ..... .... (For the purpose of part (ii), payments of interest and dividend are treated as financing activities.) The 6-year $10,000 notes payable was issued on 1 December 2018, with interest payable annually on December 1. Prepare all journal entries that should be prepared in relation to the notes payable and interests in 2019. Show the date of each journal entry.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Question 2 A and B part only
Transcribed Image Text:c) Suppose Wilfred Trading Company only started operation on 1 December 2018, compute
the followings according to the adjusted trial balance:
i) Years of useful life for Equipment all purchased on the first day of business, with
straight-line depreciation and residual value of $3,000, with partial year depreciation
rounded to the nearest full month;
ii) The depreciation expense for the year ended 2019 if double declining balance is used,
with residual value of $3,000 and partial year depreciation rounded to the nearest full
month;
iii) Why may Wilfred Trading Company choose the double declining balance method?
Name one more depreciation method and explain the difference between this and the
other methods.
d) Compute Cash flow from financing activities for the year ended 31 December 2019
assuming the following balance at 31 December 2018:
$10,000
$12,000
Notes Payable
Share Capital
Dividend Payable .
Interest Payable
$100
..... ....
(For the purpose of part (ii), payments of interest and dividend are treated as financing
activities.)
The 6-year $10,000 notes payable was issued on 1 December 2018, with interest payable
annually on December 1. Prepare all journal entries that should be prepared in relation to
the notes payable and interests in 2019. Show the date of each journal entry.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 4 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education