Exercise 22Records of the equipment purchased by Sinta Company showed:Useful lifeItemsQtyCost/ UnitDate AcquiredScrap Valuein yearsComputer(2)P29,000Sept. 1, 2018P5,0004.AirconMar. 1, 20183,000(1)(3)10,000Airfan1,500Feb. 1, 2017300Direction: a) Adjusting entries on December 31, 2018b) Financial position presentation as of December 31, 2018.Using the data in No. 22 above, give the adjusting entries and the financial positionpresentation if the accounting period ends on December 31, 2019.6 6

Name: Exercise 22Records of the equipment purchased by Sinta Company showed
Uploaded: 2024-03-05T11:50:36.000Z
Channel: Bartleby
Description: Exercise 22Records of the equipment purchased by Sinta Company showed:Useful lifeItemsQtyCost/ UnitDate AcquiredScrap Valuein yearsComputer(2)P29,000Sept. 1, 2018P5,0004.AirconMar. 1, 20183,000(1)(3)10,000Airfan1,500Feb. 1, 2017300Direction: a) Adju

Depreciation as per straight line method = (Original Costs - Salvage Value)/ Useful Life

Business

Accounting

Records of the equipment purchased by Sinta Company showed: Useful life Items Qty Cost/ Unit Date Acquired Scrap Value in years Computer (2) P29,000 Sept. 1, 2018 P5,000 4 10,000 1,500 Aircon (1) Mar. 1, 2018 3,000 6. Airfan (3) Feb. 1, 2017 300 6. Direction: a) Adjusting entries on December 31, 2018 b) Financial position presentation as of December 31, 2018.

Records of the equipment purchased by Sinta Company showed: Useful life Items Qty Cost/ Unit Date Acquired Scrap Value in years Computer (2) P29,000 Sept. 1, 2018 P5,000 4 10,000 1,500 Aircon (1) Mar. 1, 2018 3,000 6. Airfan (3) Feb. 1, 2017 300 6. Direction: a) Adjusting entries on December 31, 2018 b) Financial position presentation as of December 31, 2018.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Question 6The following trial balance was extracted from the ledger of Juliana at 31 December2020. JulianaTrial Balance as at 31 December 2020 RM RMLand at cost 26,000Plant at cost 83,000Accumulated Depreciation at 1 January 2020- Plant 13,000Office Equipment 33,000Accumulated Depreciation at 1 January 2020 Office Equipment 8,000Receivables 198,000Payables 52,000Sales…
Question 5The following balances were extracted from the books of Billion Precision for the yearended 31 December 2020.Dr (RM) Cr (RM)Land 500,000Building 200,000Motor vehicles 120,000Plant and machinery 70,000Profit b/f as at 01.01.2020 237,650Capital 438,000Acc depreciation as at 1.1.2020 :-Building 60,000-Motor Vehicles 69,250-Plant & Machinery 40,000Returns 3,600 4,100Revenue 800,000Purchases 400,000Discounts 5,0006Carriage inwards 7,700Opening inventory 52,000Provision for bad debts 2,000Trade receivables / Trade payable 66,000 43,200Advertising 18,000Staff training cost 4,000Bad debts 12,500Motor expenses 27,000Rental 90,000Bank 7,600Wages and salaries 126,0001,701,800 1,701,800Additional information:i.i. The provision for bad debts should be 4% of trade receivables.ii. Depreciation is to be charged as follows:-Buildings 2% on cost.-Plant and machinery 20% on cost.-Vehicles 25% on cost.iii. The closing inventories is valued at RM57,000.Required:a. Prepare the Statement of…
QUESTION 1The following trial balance relates to Golden Ltd at 30th September 2018 GHS'000 GHS'000Sales (a) 760,000Material purchases (b) 128,000Production labour (b) 248,000Factory overheads (b) 160,000Distribution costs 28,400Administrative expenses (c) 92,800Finance costs 700Investment income 1,600Leased property - at cost (b) 100,000Plant and equipment - at cost (b) 89,000Accumulated amortisation/depreciation at 1/10/2017- leased property 20,000- plant and equipment…
help me Question 6The following trial balance was extracted from the ledger of Juliana at 31 December2020.JulianaTrial Balance as at 31 December 2020RM RMLand at cost 26,000Plant at cost 83,000Accumulated Depreciation at 1 January 2020- Plant 13,000Office Equipment 33,000Accumulated Depreciation at 1 January 2020Office Equipment 8,000Receivables 198,000Payables 52,000Sales 763,000Purchases 516,000Returns inwards 47,000Discount allowed 4,000Capital at 1st January 2020 230,000Drawings 14,000Provision for doubtful debts at 1 January 2020 23,000Salaries Expense 44,000Administration costs 38,000Bank 75,000Bad debts written off 77,000Inventory at 1 January 2020 84,0001,164,000 1,164,000Additional information: Closing inventory is RM74,000. Depreciation on plant is charged at 10% per annum on cost. Depreciationon office equipment is charged at 20% per annum using the reducingbalance method. Administration costs include insurance prepaid of RM3,000. Salary accrued amount to RM2,000. The…
i) Company X Financial Year ends March 31. A laptop purchased 02 August 2018 at a cost of P9,500 was disposed off in January 2020 for P6800. Assuming the organisation follows local GAAPS on depreciation, provide the Journal Entries for this transaction. Outline all assumptions used. (ii) The following in being considered: Purchase of an office building worth P1M from unrestricted funding. Currently, the office building is on a 2-year lease, with rentals of BWP22,000 per month. 11 Provide your recommendations to the Finance Manager. What would be the possible effect on the Financial Health of the organisation if these transactions are approved (iii) List any key financial controls for an NGO and why these are important. (iv) Company X’s year-end is March 31. It is now April 4. A staff member asks you to process an unpaid invoice with details as follows: The invoice is for bus transportation in the amount of P800 and is dated April 2. The invoice indicates the charges relate to…
FE20 Below details are from Carryit Inc and have approached you to assist with depreciationEquipment Cost $1,055,000Salvage Value $25,000Expected life Years 10Calculate Depreciation as per straight line method, provide necessary journal entry fordepreciation and advise the closing balance of the equipment at the end of year 3.
Exercise 10-24 On December 31, 2020, Vaughn Inc. has a machine with a book value of $1,353,600. The original cost and related accumulated depreciation at this date are as follows. Machine $1,872,000 Less: Accumulated depreciation 518,400 Book value $1,353,600 Depreciation is computed at $86,400 per year on a straight-line basis.Presented below is a set of independent situations. For each independent situation, indicate the journal entry to be made to record the transaction. Make sure that depreciation entries are made to update the book value of the machine prior to its disposal. Your answer is partially correct. Try again. A fire completely destroys the machine on August 31, 2021. An insurance settlement of $619,200 was received for this casualty. Assume the settlement was received immediately. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If…
P12.1B (L0 1,2,3,5) (Correct Intangible Asset Account) Dolphin Co., organized in 2019, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2020 and 2021: Instructions 3/1/2020 3/1/2020 4/1/2020 6/30/2020 9/1/2020 12/31/2020 6/30/2021 9/1/2021 Intangible Assets 10-year franchise agreement; expires 2/28/28 Organization costsAdvance payment for 2 years for office space Purchased a patent (8-year life) Cost to develop a patent (10-year life) Net operating loss for 2020Research and development costsLegal fee to successfully defend internally developed patent $ 60,000 7,000 24,000 80,000 40,000 61,000 265,000 13,500 Prepare the necessary entries to clear the Intangible Assets account and to set up separate accounts for distinct types of intangibles. Make the entries as of December 31, 2021, recording any necessary amortization and reflecting all balances accurately as of that date. (Ignore…
Q42 Dhofar LLC acquired an asset on 1st January 2019 for OMR 500,000 and the rate of depreciation is 10%p.a. Under Straight line method. Replacement cost of the asset on 31st December 2019 was OMR 700,000 and on 31st December 2020 was OMR 1,000,000. You are required to calculate for 2020 assuming switch year is made in the current year, the value of Backlog depreciation. a. OMR 50,000 b. None of these are correct c. OMR 85,000 d. OMR 15,000
QUESTION 1 Kamisan Enterprise provides for depreciation of its machinery at 20% per annum on cost; it chargesfor a full year in the year of purchase but no provision is made in the year of sale/disposal.Financial statements are prepared annually to 31 December.2017January 1 Bought machine “A” RM12,000July 1 Bought machine “B” RM9,0002018March 31 Bought machine “C” RM11,0002019October 8 Sold machine “A” – proceeds RM6,400November 7 Bought machine “D” RM14,0002020February 3 Sold machine “B” – proceeds RM3,500February 5 Bought machine “E” RM9,700October 12 Exchanges machine “D” for machine “F” valued at RM8,000 Required:(a) Prepare the machinery account for the period from 1 January 2017 to 31 December 2020.(b) Prepare the provision for depreciation on machinery account, for the period from 1 January2017 to 31 December 2020.(c) The disposal of machinery accounts showing the profit/loss on sale for each year.
Q.A company purchased an asset that has an installed cost of $3,000,000. The asset qualifies for a 20% CCA rate. What is the beginning UCC for year 2?
5. Lepat Trading prepared its account on 30 June every year. On 30 June 2019, the statement of financial position of Lepat Trading showed the folowing. Statement of Financial Position as at 30 June 2019 RM RM Non-Current Asset Machinery 100,000 Accumulated depreciation 20,000 80,000 Motor vehicles 160,000 Accumulated depreciation 96,000 64,000 During the year ended 30 June 2020, machinery worth RM20,000 and motor vehicles worth RM60,000 were purchased by cheques. The machinery was depreciated at 10%per annuum using the straight line method and the motor vehicles at 20% per year using the reducing balance method. Required: Show the following for the year 2020: a) Machinery account b) Motor vehicles account c) Accumulated depreciation accounts for machinery and motor vehicles respectively d) Statement of Financial Position (extract) as at 30 June 2020