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- Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the purchase of the printer impacts not only depreciation expense each year but also the assets book value. What amount will be recorded as depreciation expense each year, and what will the book value be at the end of each year after depreciation is recorded?What is the journal entry Declan's Designs recorded to recognize the sale of PPE in 2022? Question 7 options: Dr. Cash $6,000Dr. Accumulated Depreciation $1,000Dr. Loss on Sale of PPE $5,000 Cr. PPE $12,000 Dr. Cash $4,000Dr. Accumulated Depreciation $3,000Dr. Loss on Sale of PPE $5,000 Cr. PPE $12,000 Dr. Cash $16,000Dr. Accumulated Depreciation $1,000Dr. Loss on Sale of PPE $5,000 Cr. PPE $22,000 Dr. Cash $4,000Dr. Accumulated Depreciation $1,000Dr. Loss on Sale of PPE $5,000 Cr. PPE $10,000You are presented with the following trial balance of Carl Ltd at 31 October 2018.Dr CrR,000 R,000Building at cost 740Buildings, accumulated depreciation, 1 November 2018 60Plant at cost 220Plant, accumulated depreciation, 1 November 2018 110Land at cost 235Bank balance 50Revenue 1,800Purchases 1,105Discounts received 90Returns inwards 35Wages 180Energy expenses 105Trade Payables 250Trade Receivables 320Inventory at 1 November 2018 160Allowance for debtors at 1 November 2018 10Administrative expenses 80Director's remuneration 70Accumulated profit at 1 November 2018 13010% Debenture 50Dividend paid 30R1 Ordinary shares 650Share premium account 803,280 3,280Additional information as at 31 October 2019.a. Closing inventory has been counted and is valued at R75,000b. An invoice of R15 000 for energy expenses for October 2019 has not been received.c. The allowance for debtors is to be increased to 5% of trade receivable.d. Buildings are depreciated at 5% per annum on their original cost,…
- You are presented with the following trial balance of Carl Ltd at 31 October 2018.Dr CrR,000 R,000Building at cost 740Buildings, accumulated depreciation, 1 November 2018 60Plant at cost 220Plant, accumulated depreciation, 1 November 2018 110Land at cost 235Bank balance 50Revenue 1,800Purchases 1,105Discounts received 90Returns inwards 35Wages 180Energy expenses 105Trade Payables 250Trade Receivables 320Inventory at 1 November 2018 160Allowance for debtors at 1 November 2018 10Administrative expenses 80Director's remuneration 70Accumulated profit at 1 November 2018 13010% Debenture 50Dividend paid 30R1 Ordinary shares 650Share premium account 803,280 3,280Additional information as at 31 October 2019.a. Closing inventory has been counted and is valued at R75,000b. An invoice of R15 000 for energy expenses for October 2019 has not been received.c. The allowance for debtors is to be increased to 5% of trade receivable.d. Buildings are depreciated at 5% per annum on their original cost,…You are presented with the following trial balance of Carl Ltd at 31 October 2018.Dr CrR,000 R,000Building at cost 740Buildings, accumulated depreciation, 1 November 2018 60Plant at cost 220Plant, accumulated depreciation, 1 November 2018 110Land at cost 235Bank balance 50Revenue 1,800Purchases 1,105Discounts received 90Returns inwards 35Wages 180Energy expenses 105Trade Payables 250Trade Receivables 320Inventory at 1 November 2018 160Allowance for debtors at 1 November 2018 10Administrative expenses 80Director's remuneration 70Accumulated profit at 1 November 2018 13010% Debenture 50Dividend paid 30R1 Ordinary shares 650Share premium account 803,280 3,280Additional information as at 31 October 2019.a. Closing inventory has been counted and is valued at R75,000b. An invoice of R15 000 for energy expenses for October 2019 has not been received.c. The allowance for debtors is to be increased to 5% of trade receivable.d. Buildings are depreciated at 5% per annum on their original cost,…On January 2, 2020, ABC Co. purchased a machine on credit terms 2/10, n/30. The invoice price was P40,000. Additional costs incurred in connection with the machine are as follows: Transportation-in: P1,200 Installation cost: P700 Testing costs prior to regular operation: P550 If the invoice is paid February 1, the acquisition cost of the machine must be a. P41,650 b. P41,100 c. P40,400 d. P39,200 e. answer not given
- A computer is sold on 1 June 2022. The details are as follows: (i) Cost $11,000 (being $10,000 plus $1000 GST) (ii) Accumulated Depreciation 1/7/2021 $4,000 (iii) Depreciation Method - Prime cost, 24% (iv) Consideration/sale proceeds of $3,000 (GST excl) which has been posted already from client to the computer asset account and has to be re-allocated). Prepared the required entries to correctly accouny for the disposal including depreciation up to the time of sale.Question 1 Hogwarts Traders: Vehicle 2DatePurchased:1 August 2019 Date CurrentdepreciationAccumulateddepreciationMake andreg.:Hyundai Atos2019 (ZV109GP)31 Dec2019? ?Purchasedfrom:HyundaiAuto(Cash) Cost Price: R150 000 Rate ofDepreciation:15% accordingto straight linemethod. Sold to: Type of Sale: Date sold: Selling Price: Required:Prepare the following accounts in the general ledger of Hogwarts Traders for the financial year ended 31 December 2019 ONLY. Start with the opening balances. Balance the accounts at the end of the month. Ignore VAT.‐ Vehicles‐ Accumulated depreciation: Vehicles‐ Depreciation‐ Asset Disposal‐ Profit/Loss on sale of vehicles.Hoot Enterprises buys a warehouse for $590,000 to use for its East Coast distributionoperations. On the date of the purchase, a professional appraisal shows a value of $650,000for the warehouse. The seller had originally purchased the building for $480,000. Hoothas a similar warehouse on the West Coast that has a book value of $603,000. Under thehistorical cost principle, Hoot should record the building fora. $650,000.b. $480,000.c. $590,000.d. $603,000.
- Subasta Corporation was able to acquire second hand goods worth P100,000 in an auction. The goods can be sold as is for P120,000 or reconditioned at a cost of P30,000 and sold for P170,000. 1. Identify the irrelevant cost in this problem. Why? 2. Which alternative should be chosen: sell as is or recondition. Why? 3. What is the opportunity cost of reconditioning the goods. Why?If the equipment account has a balance of $52,000 and its accumulated depreciation account has a balance of $10,000, what would be the book value of the equipment? Group of answer choices $10,000 $62,000 $42,000 $52,000Sea shores is a property investment company that focuses on buying landing and buildings for purposes for rental and resale purposes. The company currently own the following land and buildings. Use Purchase date Depreciation policy cost Model Fair value on 31 Dec 2020 Braamfontein land Rented to the local municipality 30 June 2019 10 000 000 Fair value 14 000 000 Umhlanga building Consists of 50 apartments 30 apartments are rented to tenants 01 May 2020 20% on cost 20 000 000 Cost 25 000 000 Richards bay building Will be sold on appreciation of the value 30 April 2020 ? 8 400 000 cost 8 400 000 Richards Bay land Occupied by sea shores 1 January 2020 12 000 000 Cost 10 000 000 Pretoria Building Rented to tenants 1 February 2019 20% on cost 8 000 000 Fair value 10 545 800 Required Prepare all the necessary journal entry for the year ended 31 December 2020.
