You are required to prepare an income statement of profit or loss and other comprehensive income and the statement of financial position for the year ended 28 February 2020 . NOMINAL ACCOUNTS SECTIONSales3 100 000Cost of Sales1450 000Salaries and Wages1 480 000205 000Water and Electricity122 000Stationery88 000Repairs and Maintenance585 000Telephone400 000Depreciation180 000Interest on Loan60 000Interest on Fixed Deposit20 000Credit losses recovered68 000Credit losses1 000Allowances for credit losses adjustment6 498 0006 498 000 QUESTION 1The following information was obtained from the records of Reutlwile General Dealers for the year ended 28 FebruPOST ADJUSTMENT TRIAL BALANCEDEBITCREDITBALANCE SHEET SECTION2 058 000Capital100 000Drawings680 000Vehicles at cost320 000Plant and Machinery at cost280 000Office Furniture at cost280 000Accumulated Depreciation on VehiclesAccumulated Depreciation on Plant and Machinery120 00080 000Accumulated Depreciation on FurnitureFixed Deposit90 000650 00015% Long-term LoanDebtors/ Accounts receivable126 000150 000Inventory50 000Bank125 000Accrued Expenses55 000Prepaid Expenses

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Description: You are required to prepare an income statement of profit or loss and other comprehensive income and the statement of financial position for the year ended 28 February 2020 . NOMINAL ACCOUNTS SECTIONSales3 100 000Cost of Sales1450 000Salaries and Wag

Debit Side total as per Above question figure is 6,430,000 and Credit Side Total is 6,493,000 which…

Business

Accounting

NOMINAL ACCOUNTS SECTION Sales 3 100 000 Cost of Sales 1 450 000 1 480 000 Salaries and Wages Water and Electricity 205 000 122 000 Stationery 88 000 Repairs and Maintenance Telephone 585 000 400 000 Depreciation 180 000 Interest on Loan 60 000 Interest on Fixed Deposit 20 000 Credit losses recovered 68 000 Credit losses 1 000 Allowances for credit losses adjustment 6 498 000 6 498 000

NOMINAL ACCOUNTS SECTION Sales 3 100 000 Cost of Sales 1 450 000 1 480 000 Salaries and Wages Water and Electricity 205 000 122 000 Stationery 88 000 Repairs and Maintenance Telephone 585 000 400 000 Depreciation 180 000 Interest on Loan 60 000 Interest on Fixed Deposit 20 000 Credit losses recovered 68 000 Credit losses 1 000 Allowances for credit losses adjustment 6 498 000 6 498 000

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter19: Accounting For Plant Assets, Depreciation, And Intangible Assets

Section19.3: Journalizing Depreciation Expense

Problem 1OYO

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Prior to adjustment at the end of the year, the balance in Trucks is $437,500 and the balance in Accumulated Depreciation—Trucks is $133,000. Details of the subsidiary ledger are as follows: TruckNo. Cost EstimatedResidualValue EstimatedUsefulLife AccumulatedDepreciationat Beginningof Year MilesOperatedDuringYear 1 $84,500 $12,675 210,000 miles — 31,500 miles 2 119,000 14,280 330,000 miles $23,800 33,000 miles 3 104,000 14,560 219,000 miles 83,200 21,900 miles 4 130,000 15,600 350,000 miles 26,000 42,000 miles Question Content Area a. Determine for each truck the depreciation rate per mile and the amount to be credited to the accumulated depreciation section of each subsidiary account for the miles operated during the current year. Keep in mind that the depreciation taken cannot reduce the book value of the truck below its residual value. Round the rate per mile to two decimal places. Enter all values as positive…
Prior to adjustment at the end of the year, the balance in Trucks is $437,500 and the balance in Accumulated Depreciation—Trucks is $133,000. Details of the subsidiary ledger are as follows: TruckNo. Cost EstimatedResidualValue EstimatedUsefulLife AccumulatedDepreciationat Beginningof Year MilesOperatedDuringYear 1 $84,500 $12,675 210,000 miles — 31,500 miles 2 119,000 14,280 330,000 miles $23,800 33,000 miles 3 104,000 14,560 219,000 miles 83,200 21,900 miles 4 130,000 15,600 350,000 miles 26,000 42,000 miles Question Content Area a. Determine for each truck the depreciation rate per mile and the amount to be credited to the accumulated depreciation section of each subsidiary account for the miles operated during the current year. Keep in mind that the depreciation taken cannot reduce the book value of the truck below its residual value. Round the rate per mile to two decimal places. Enter all values as positive…
ent-player/index.html?launchId=5e8570d9-7885-4557-a756-8a59bb69135c#/question Question 6 of 9 View Policies Current Attempt in Progress (a1) At the end of its first year, the trial balance of Blossom Company shows Equipment $23,100 and zero balances in Accumulated Depreciation Equipment and Depreciation Expense. Depreciation for the year is estimated to be $2,700. Date Prepare the annual adjusting entry for depreciation at December 31. (List debit entry before credit entry. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Dec. 31 WP NWP Assessment Player Ul Ap X + Account Titles and Explanation eTextbook and Medial List of Accounts Save for Later -/15 : Debit Credit Attempts: 0 of 3 used (a2) The parts of this question must be completed in order. This part will be available when you complete the part above. (a3) The parts of this question…
Depreciation by units-of-activity Method Prior to adjustment at the end of the year, the balance in Trucks is $385,500 and the balance in Accumulated Depreciation—Trucks is $115,400. Details of the subsidiary ledger are as follows: TruckNo. Cost EstimatedResidualValue EstimatedUsefulLife AccumulatedDepreciationat Beginningof Year MilesOperatedDuringYear 1 $78,500 $11,775 240,000 miles — 36,000 miles 2 114,500 13,740 320,000 $22,900 32,000 3 90,000 12,600 213,000 $72,000 21,300 4 102,500 12,300 370,000 $20,500 44,400 a. Determine for each truck the depreciation rate per mile and the amount to be credited to the accumulated depreciation section of each subsidiary account for the miles operated during the current year. Keep in mind that the depreciation taken cannot reduce the book value of the truck below its residual value. Round the rate per mile to two decimal places. Enter all values as positive amounts. Truck…
Depreciation by units-of-activity Method Prior to adjustment at the end of the year, the balance in Trucks is $404,300 and the balance in Accumulated Depreciation—Trucks is $118,560. Details of the subsidiary ledger are as follows: TruckNo. Cost EstimatedResidualValue EstimatedUsefulLife AccumulatedDepreciationat Beginningof Year MilesOperatedDuringYear 1 $84,500 $12,675 230,000 miles — 34,500 miles 2 116,300 13,956 320,000 $23,260 32,000 3 91,000 12,740 200,000 $72,800 20,000 4 112,500 13,500 350,000 $22,500 42,000 a. Determine for each truck the depreciation rate per mile and the amount to be credited to the accumulated depreciation section of each subsidiary account for the miles operated during the current year. Keep in mind that the depreciation taken cannot reduce the book value of the truck below its residual value. Round the rate per mile to two decimal places. Enter all values as positive amounts.…
The plant and machinery at cost account of a business for the year ended 30 June 20X4 was as follows: PLANT AND MACHINERY – COST 1.7.20X3 Balance 240,000 30.9.20X3 Disposal 60,000 1.1.20X4 Cash 160,000 30.6.20X4 Impairment 10,000 30.6.20X4 Revaluation 40,000 The company's policy is to charge depreciation on the straight line method, with proportionate depreciation in the years of purchase and disposal. Plant and machine have 5 years useful life. None of asset has used more than 3 years. Required: i, Explain key transactions incurred with non-current asset during the year? ii, Determine the depreciation charge for the year ended 3o June 20X4 (show working)?
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m/ilrn/takeAssignment/takeAssignmentMain.do?invoker-assignments&takeAssignmentSession Locator-assign... eBook Show Me How A ✩ Comparing three depreciation methods Dexter Industries purchased packaging equipment on January 8 for $112,500. The equipment was expected to have a useful life of 3 years, or 22,500 operating hours, and a residual value of $4,500. The equipment was used for 9,000 hours during Year 1, 6,750 hours in Year 2, and 6,750 hours in Year 3. Required: 1. Determine the amount of depreciation expense for the 3 years ending December 31, by (a) the straight-line method, (b) the units-of-activity method, and (c) the double-declining-balance method. Also determine the total depreciation expense for the 3 years by each method. Do not round intermediate calculations when determining the depreciation rate. Round the final answers for each year to the nearest whole dollar. Year Year 1 Year 2 Year 3 Total Straight-Line Method Depreciation Expense Units-of-Activity Method 2. What…
Prior to adjustment at the end of the year, the balance in Trucks is $403,000 and the balance in Accumulated Depreciation—Trucks is $120,400. Details of the subsidiary ledger are as follows: TruckNo. Cost EstimatedResidualValue EstimatedUsefulLife AccumulatedDepreciationat Beginningof Year MilesOperatedDuringYear 1 $84,500 $12,675 220,000 miles —     33,000 miles 2 119,000 14,280 360,000 $23,800     36,000 3 94,500 13,230 210,000 $75,600     21,000 4 105,000 12,600 340,000 $21,000     40,800 a. Determine for each truck the depreciation rate per mile and the amount to be credited to the accumulated depreciation section of each subsidiary account for the miles operated during the current year. Keep in mind that the depreciation taken cannot reduce the book value of the truck below its residual value. Round the rate per mile to two decimal places. Enter all values as positive amounts. Truck No. Rate per Mile(in cents)…
Prior to adjustment at the end of the year, the balance in Trucks is $407,000 and the balance in Accumulated Depreciation—Trucks is $120,300. Details of the subsidiary ledger are as follows: TruckNo. Cost EstimatedResidualValue EstimatedUsefulLife AccumulatedDepreciationat Beginningof Year MilesOperatedDuringYear 1 $78,500 $11,775 200,000 miles —     30,000 miles 2 110,000 13,200 350,000 $22,000     35,000 3 91,000 12,740 210,000 $72,800     21,000 4 127,500 15,300 340,000 $25,500     40,800 a. Determine for each truck the depreciation rate per mile and the amount to be credited to the accumulated depreciation section of each subsidiary account for the miles operated during the current year. Keep in mind that the depreciation taken cannot reduce the book value of the truck below its residual value. Round the rate per mile to two decimal places. Enter all values as positive amounts. Truck No. Rate per Mile(in cents)…
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