The document contains several accounting questions related to depreciation and disposal of plant assets. Some key details:
- Company A purchased equipment for $750,000 in 2000 that was depreciated using the diminishing balance method at a rate of 10% annually.
- Company B purchased machinery for $100,000 in 2001 with a 10-year life and estimated residual value of $25,000, using straight-line depreciation. The machinery was sold in 2003 for $65,000.
- Company C sold a van in 2005 that was purchased for $9,500 with a 5-year life and $500 salvage value, using straight-line depreciation. The accumulated de
It explains the IASB’s Regulatory framework including the Companies act, Stock exchange listing rules and IFRS. It also explains the IASB relationship with other bodies and how they operate and how the IFRS are produced
The ppt gives a description of how different theories define working of forex market. ?
when & where do these theories fail?
What is the impact of macro-economic factors like inflation, unemployment etc on forex exchange.?
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presentation slides on international funds flow prepared by the group members in a new way thanks guys for providing such a beneficial, knowledgeable slides.
It explains the IASB’s Regulatory framework including the Companies act, Stock exchange listing rules and IFRS. It also explains the IASB relationship with other bodies and how they operate and how the IFRS are produced
The ppt gives a description of how different theories define working of forex market. ?
when & where do these theories fail?
What is the impact of macro-economic factors like inflation, unemployment etc on forex exchange.?
A nicely formatted presentation.
What are the different types of forex market?
presentation slides on international funds flow prepared by the group members in a new way thanks guys for providing such a beneficial, knowledgeable slides.
Este é um sidur messiânico [português|hebreu|transliterado] com comentarios e diversos recursos adicionais de muita utilidade, e muito recomendável para todos aqueles que estão de retorno à prática (halachah) da fé/fidelidade (emunah) em Yeshua o Messías prometido de Israel, de acordo com o contexto e tradição hebraico-messiânicas.
A continuação, o resumen do conteúdo deste sidur:
שחֲרִית SHACHARIT
Modeh Aní pág. 1
Bircot HaShachar pág. 1
Derech HaYESHUAH pág. 1
Birkat HaTalit pág. 2
Birkat HaTefilín pág. 2
Veerastích Lí pág. 2
Birkat HaTorah pág. 2
Birkat HaBerit Chadashah pág. 3
Birkat Cohanim pág. 3
Aseret HaDibrot pág. 3
Mitsvá Guedolá pág. 5
Al Tachshevu pág. 6
Im-Ahavtêm Otí pág. 6
Barukh Habá pág. 7
Hoshá-Ná Bam’romim! pág. 7
Boah-na HaAdon YESHUA pág. 7
SHEMA ISRAEL pág. 7
VeHayah pág. 8
Vayomer pág. 9
Tefilah AVÍNU pág. 10
Birkat HaTorah pág. 11
Birkat HaBerit Chadashah pág. 11
מִנְחָה MINCHAH
SHEMA ISRAEL pág. 12
Tehilim 122 pág. 12
HaTiqvah pág. 13
ערְבִית ARBIT
KERIAT SHEMA AL HAMITÁ pág. 14
SHEMA ISRAEL pág. 14
Tehilim 91 pág. 15
Tehilim 121 pág. 16
קבָ לת שבָת QABALAT SHABAT
Sobre o Shabat pág. 18
Preparação da Mesa pág. 18
Acendido de velas pág. 18
KIDUSH pág. 19
Benção por YESHUA Hamashiach pág. 20
SHEMA ISRAEL pág. 20
Benção pelo vinho pág. 21
Benção pela esposa pág. 21
Benção pelos filhos pág. 21
Benção pelo pão pág. 22
Birkat Hamazon pág. 22
HAVDALAH pág. 24
Cálice da Salvação pág. 24
Benção pelo vinho pág. 24
Benção pelo pão pág. 24
Benção sobre as especiarias pág. 25
Benção sobre o fogo pág. 25
Havdalah entre os primeiros seguidores de YESHUA pág. 25
RECURSO AUXILIAR
O ALEFBET pág. a
As letras hebraicas/aramaicas pág. a
As vogais pág. a
Sílabas tônicas pág. b
TEFILAH (Um guía orientativo) pág. b
PROGRAMA DE LEITURAS pág. d
Leituras diárias para Shacharit pág. d
Leituras diárias para Minchah pág. e
PARASHIOT pág. e
Sugestões de leitura para o Brit Chadashah pág. p
MATERIAL ADICIONAL
FESTIVIDADES pág. A
Datas sinaladas (Moedim) de YHVH pág. A
Lista dos principais YAMIM TOVIM (Feriados) pág. B
Outras datas comemorativas para os judeus pág. B
TRADIÇÃO pág. B
Shmoneh Esreh / Amidah pág. B
Sobre as indumentárias tradicionais… pág. C
Leis de Kashrut pág. D
Os 7 preceitos universais pág. F
Os 13 principios de fe de Maimônides pág. F
Os 39 trabalhos proibidos no Shabat pág. G
Sobre a eletricidade no Shabat pág. N
Os 7 mandamentos estabelecidos pelos sábios pág. N
Os livros da Bíblia (por ordem cronológica) pág. O
Os livros da Bíblia e seus nomes em hebreu pág. Q
HISTORIA
A historia de Israel em 12 partes pág. T
Os 12 filhos de Yaacov pág. W
Disposição dos acampamentos pág. X
YESHUA pág. X
Evidências de que YESHUA é o Messias pág. X
Outras evidências pág. Z
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Chapter Review10-8dDiscussion Questions
1. O'Neil Office Supplies has a fleet of automobiles and trucks for use by salespersons and for delivery of office supplies and equipment. Collins Auto Sales Co. has automobiles and trucks for sale. Under what caption would the automobiles and trucks be reported in the balance sheet of (a) O'Neil Office Supplies and (b) Collins Auto Sales Co.?
2. Bullwinkle Co. acquired an adjacent vacant lot with the hope of selling it in the future at a gain. The lot is not intended to be used in Bullwinkle business operations. Where should such real estate be listed on the balance sheet?
3. Alpine Company solicited bids from several contractors to construct an addition to its office building. The lowest bid received was for $1,200,000. Alpine decided to construct the addition itself at a cost of $1,100,000. What amount should be recorded in the building account?
4. Keyser Company purchased a machine that has a manufacturer's suggested life of 20 years. The company plans to use the machine on a special project that will last 12 years. At the completion of the project, the machine will be sold. Over how many years should the machine be depreciated?
5. Is it necessary for a business to use the same method of computing depreciation for all classes of its depreciable assets?
6.
1. Under what conditions is the use of the straight-line depreciation method most appropriate?
2. Under what conditions is the use of the units-of-activity depreciation method most appropriate?
3. Under what conditions is the use of the double-declining-balance depreciation method most appropriate?
7. Distinguish between the accounting for capital expenditures and revenue expenditures.
8. Immediately after a used truck is acquired, a new motor is installed at a total cost of $3,850. Is this a capital expenditure or a revenue expenditure?
9. For some of the fixed assets of a business, the balance in Accumulated Depreciation is equal to the cost of the asset. (a) Is it permissible to record additional depreciation on the assets if they are still useful to the business? Explain. (b) When should an entry be made to remove the cost and the accumulated depreciation from the accounts?
10.
1. Over what period of time should the cost of a patent acquired by purchase be amortized?
2. In general, what is the required accounting treatment for research and development costs?
3. How shoul10-8ePractice Exercises
PE 10-1AStraight-line depreciation
1. Obj. 2
Example Exercise 10-1
A building acquired at the beginning of the year at a cost of $1,450,000 has an estimated residual value of $300,000 and an estimated useful life of 10 years. Determine (a) the depreciable cost, (b) the straight-line rate, and (c) the annual straight-line depreciation.
PE 10-1BStraight-line depreciation
1. Obj. 2
Example Exercise 10-1
Equipment acquired at the beginning of the year at a cost of $340,000 has an estimated residual value of $45,000 and an estimated useful life of 10 years. ...
For this exam, omit all general journal entry explanations.Ensur.docxbudbarber38650
For this exam, omit all general journal entry explanations.
Ensure to include correct dollar signs, underlines & double underlines,
when required. Ensure to use proper financial document format details
such as blank lines where required. Unless otherwise noted, all fiscal
years end on December 31.
Question 1: 25%points: Presented below is information related to Woozie Floozy
Company for 2014. (All balances are normal.)
Retained earnings balance, January 1, 2014 $ 980,000
Sales for the year 25,000,000
Cost of goods sold 17,000,000
Interest revenue 70,000
Selling and administrative expenses 4,700,000
Write-off of goodwill (not tax deductible) 820,000
Income taxes for 2014 905,000
Gain on the sale of investments (normal recurring) 110,000
Loss due to flood damage—extraordinary item (net of tax) 390,000
Loss on the disposition of the wholesale division 815,000
Loss on operations of the wholesale division 200,000
Income tax benefit from discontinued wholesale division 285,000
Dividends declared on common stock 250,000
Dividends declared on preferred stock 50,000
Woozie Floozy Company decided to discontinue its entire wholesale operations and
to retain its manufacturing operations. On September 15, Woozie Floozy sold the
wholesale operations to Flippy-Floppy Company. During 2014, there were 200,000
shares of common stock outstanding all year.
Requirement: Prepare a multistep income statement.
Question 2: 20%points:
On June 1, 2014, Flippy-Floppy purchased a manufacturing machine for
$864,000. The machine has an eight-year estimated life and a $44,000 estimated
salvage value. Flippy-Floppy expects to manufacture 1,800,000 units over the life
of the machine.
Required: Complete the required depreciation schedules on the manufacturing
machine for each method listed. (Do not provide any supporting calculations.)
The aditional production information is as follows:
Year Production
2014 110,000
2015 300,000
2016 350,000
2017 350,000
2018 500,000
2019 450,000
2020 375,000
2021 400,000
Schedules for:
a. Straight-line.
Year Depreciation Expense Accumulated Depreciation.
Strayer university acc 304 week 4 chapter 11 homework newshyaminfotech
ACC 304 Week 4 Chapter 11 Homework
1) Lockard Company purchased machinery on January 1, 2014, for $102,960. The machinery is estimated to have a salvage value of $10,296 after a useful life of 8 years.
2) Compute 2014 depreciation expense using the double-declining-balance method.
3) Compute 2014 depreciation expense using the double-declining-balance method,
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1. Kraft Enterprises owns the following assets at December 31, 2012.
Cash in bank–savings account
67,516
Checking account balance
26,445
Cash on hand
9,478
Postdated checks
753
Cash refund due from IRS
40,324
Certificates of deposit (180-day)
Number of Pages 2 (Double Spaced)Language Style English (U.S.).docxhopeaustin33688
Number of Pages: 2 (Double Spaced)
Language Style: English (U.S.)
Writing Style: APA
Number of sources: 1
Choose one (1) of the topics below and develop a three to four (3-4) paragraph essay (of at least 250-500 words) which adequately address the topic you have chosen. The topic I have chosen is:
Considered the “Mummy’s Curse,” a series of unexplainable, unfortunate, or tragic events that happened to the people who were present at the opening of Tutankhamen’s tomb.
The instructions are as follows:
Write a 3-4 paragraph paper in which you:
1. Clearly state the “mystery” and provide a brief summary of at least two (2) theories which could explain the mystery. Because some theories may sound far-fetched, include the source or promoter of each theory – such as a scientist, a historian, a theologian, etc.
2. Identify one (1) of the theories and provide at least two (2) convincing reasons why the theory you have chosen is the best one to explain the mystery.
3. Use at least two (2) sources besides the textbook.
The assignment must follow these formatting requirements:
? Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA Style format.
? Include a cover page containing the tile of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.
Acct 210
Spring 2013
1. What is meant by a classified balance sheet?
2. Why do we record accounts receivable on the balance sheet at net realizable value?
3. Which is required by GAAP, the direct write-off method or the allowance method for accounting for receivables?
4. Why is it important for the company to focus on improving the accounts receivable turnover ratio (why do they want to collect receivables as quickly as possible)?
5. There are two methods for calculating the allowance account, percent of sales and aging of accounts receivable. Briefly describe the difference between these two methods.
Nassau Auto Parts sells new and used auto parts. Although a majority of its sales are cash sales, it makes a significant amount of credit sales. During 2013, its first year of operations, Dixie Auto Parts experienced the following:
Sales on account
$
275,000
Beginning accounts receivable balance
550,000
Collections of accounts receivable
368,000
Uncollectible accounts charged off during the year
1,200
Beginning allowance for uncollectible accounts balance
14,500
Assume that Dixie Auto Parts uses the allowance method of accounting for bad debts and estimates that 1% of its sales on account will not be collected
a. What is the Accounts Receivable balance at December 31, 2013?
b. What is the ending balance of Allowance for Uncollectible Accounts (Allowance for Doubtful Accounts) at December 31, 2013, after all entries and adjusting entries are posted (the adjustment for bad debt expens.
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Details of All 180 Questions Given Below
SET 1
1. Kraft Enterprises owns the following assets at December 31, 2012.
Cash in bank–savings account 67,516 Checking account balance 26,445
Cash on hand 9,478 Postdated checks 753
Cash refund due from IRS 40,324 Certificates of deposit (180-day) 94,754
What amount should be reported as cash?
B-0301This chapter introduces important concepts in income measure.docxikirkton
B-0301This chapter introduces important concepts in income measurement. Accountants oftentimes discuss these concepts using accounting "jargon" or "terminology. Effective business communication requires that all parties attach the same meaning to the words that are used to express concepts. Match the accounting terms in the list on the left to the accounting concept described in the list on the right.(1)Depreciation(a)The basic conditions require that an exchange has occurred and the earnings process is complete.(2)Calendar Year(b)An asset reflecting advance payment for something that will be consumed over the future.(3)Revenue Recognition(c)An entry usually prepared coincident with the end of an accounting period to update the accounting for prepaids, accruals, and other allocations.(4)Cash Basis(d)An annual reporting period that runs from January 1 through December 31.(5)Prepaids(e)Monies collected from customers for services that have not yet been provided.(6)Unearned Revenue(f)An approach that results in the initial recording of prepaids to an asset account and unearned revenues to a liability account.(7)Balance Sheet Approach(g)The notion that a continuous business process can be divided into time intervals such as years, quarters, or months for reporting purposes.(8)Adjusting Entry(h)A systematic and rational allocation scheme to spread a portion of the total cost of a productive asset to each period of use.(9)Accruals(i)Expenses and revenues that gradually accumulate with the passage of time.(10)Periodicity Assumption(j)A simplified non-GAAP based method to record revenues as received and expenses as paid.
&R&"Myriad Web Pro,Bold"&20B-03.01
B-03.01
Worksheet(1)Depreciation(h)A systematic and rational allocation scheme to spread a portion of the total cost of a productive asset to each period of use.(2)Calendar Year(3)Revenue Recognition(4)Cash Basis(5)Prepaids(6)Unearned Revenue(7)Balance Sheet Approach(8)Adjusting Entry(9)Accruals(10)Periodicity Assumption
&L&"Myriad Web Pro,Bold"&12Name:
Date: Section: &R&"Myriad Web Pro,Bold"&20B-03.01
B-03.01
B-03.02Accounting "failures" occur when reported results are not presented in accordance with generally accepted accounting principles. These failures can produce significant financial losses to investors and creditors. Oftentimes, an accounting failure results from an incorrect application of revenue recognition concepts. Revgression Corporation included each of the following described transactions in revenue during 20X5. Three of these transactions were appropriate, and three were not. Determine which are "ok" and which are "not ok."(1)Goods were sold and shipped in late 20X5, but the product still requires substantial installation and setup services. The price and terms of sale stipulate that seller must satisfactorily complete all installation and setup at the buyer's location.(2)Goods were produced according to a customer purchase order, but had not y ...
Describe depreciation concepts and methods of depreciation.
Identify other depreciation issues.
Explain the accounting issues related to asset impairment.
Discuss the accounting procedures for depletion of mineral resources.
Apply the accounting for revaluations.
Demonstrate how to report and analyze property, plant, equipment, and mineral resources.
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Francesca Gottschalk - How can education support child empowerment.pptxEduSkills OECD
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The Roman Empire A Historical Colossus.pdfkaushalkr1407
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The empire's roots lie in the city of Rome, founded, according to legend, by Romulus in 753 BCE. Over centuries, Rome evolved from a small settlement to a formidable republic, characterized by a complex political system with elected officials and checks on power. However, internal strife, class conflicts, and military ambitions paved the way for the end of the Republic. Julius Caesar’s dictatorship and subsequent assassination in 44 BCE created a power vacuum, leading to a civil war. Octavian, later Augustus, emerged victorious, heralding the Roman Empire’s birth.
Under Augustus, the empire experienced the Pax Romana, a 200-year period of relative peace and stability. Augustus reformed the military, established efficient administrative systems, and initiated grand construction projects. The empire's borders expanded, encompassing territories from Britain to Egypt and from Spain to the Euphrates. Roman legions, renowned for their discipline and engineering prowess, secured and maintained these vast territories, building roads, fortifications, and cities that facilitated control and integration.
The Roman Empire’s society was hierarchical, with a rigid class system. At the top were the patricians, wealthy elites who held significant political power. Below them were the plebeians, free citizens with limited political influence, and the vast numbers of slaves who formed the backbone of the economy. The family unit was central, governed by the paterfamilias, the male head who held absolute authority.
Culturally, the Romans were eclectic, absorbing and adapting elements from the civilizations they encountered, particularly the Greeks. Roman art, literature, and philosophy reflected this synthesis, creating a rich cultural tapestry. Latin, the Roman language, became the lingua franca of the Western world, influencing numerous modern languages.
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Synthetic Fiber Construction in lab .pptxPavel ( NSTU)
Synthetic fiber production is a fascinating and complex field that blends chemistry, engineering, and environmental science. By understanding these aspects, students can gain a comprehensive view of synthetic fiber production, its impact on society and the environment, and the potential for future innovations. Synthetic fibers play a crucial role in modern society, impacting various aspects of daily life, industry, and the environment. ynthetic fibers are integral to modern life, offering a range of benefits from cost-effectiveness and versatility to innovative applications and performance characteristics. While they pose environmental challenges, ongoing research and development aim to create more sustainable and eco-friendly alternatives. Understanding the importance of synthetic fibers helps in appreciating their role in the economy, industry, and daily life, while also emphasizing the need for sustainable practices and innovation.
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Acetabularia Information For Class 9 .docxvaibhavrinwa19
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Home assignment II on Spectroscopy 2024 Answers.pdf
Depreciation Questions
1. 1 | Page
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DEPRECIATION QUESTIONS
Q # 3- Accounting for Plant Assets:
On 5th April 2000, M/s Brilliant Company acquired Equipment having a cost of Rs. 750000; the useful life
of equipment is 10 years. The company uses diminishing balance method to calculate depreciation and
allowance method to record it. The Rate of Depreciation is 10%. The company closed its book of account
on December 31st each year. On 1st January 2003 the above equipment was trade in with new
equipment, which has a cost of Rs. 900000 and the dealer granted a trade in allowance of Rs. 500000 for
the old equipment. The depreciation was charged with the same method and rate on the new equipment
Required:
a. Compute and record depreciation from 2000 to 2004.
b. Compute the gain/loss on trade-in of equipment and the amount to be paid in Cash at the time of
trade in.
c. Record entry in journal for the trade in of equipment.
JULY 2005
Q # 5 In January 1, 2001 Beta Industries purchased equipment with an estimated 10-year life for Rs.
100,000. The Residual value was estimated at Rs. 25,000. Beta Industries uses straight-line depreciation
and applies the half-year convention.
On June 7, 2003, Beta Industries closed of its plants and sold this equipment for Rs. 65,000.
Calculate:
(a) Depreciation Expense for 2001, 2002 & 2003
(b) Book value at the date of sale in 2003.
(c) Gain loss on the sale in 2003.
JULY 2006
Q # 4 On September 30, 2005 Shahid Maintenance Service sold one of its vans. The acquisition cost of
the van was Rs. 9,500. it had an estimated useful life of 5 years and a salvage value of Rs. 500. Straight
line depreciation was used. The balance in the accumulated depreciation account at December 31, 2004
was Rs. 4,950.
Instructions:
a. Calculate the gain or loss on the sale assuming that the asset is sold for either
(1) Rs. 4,000 or
(2) Rs. 2,500. In both cases the sales is for cash.
JULY 2008
Q.3 (a) (i) Does the accounting principles of consistency require a company to use the same method of
depreciation for of all its plant assets?
(ii) Is it acceptable for a corporation to use different depreciation methods in its financial statements and
its income tax returns?
(b) Grain Products uses straight-line depreciation on all its depreciable assets. The accounts are adjusted
and closed at the end of each calendar year. On January 4 ,1992, the corporation purchase machinery for
2. 2 | Page
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cash at a cost of $80,000. Useful life was estimated to be 10 years and residual value $12,000.
Depreciation for partial years in recorded to the nearest full month.
In 1994, after almost 3 years of the experience with the equipment, management decided that the
estimated life of the equipment should be revised from 10 years to 6 years. No change was made in the
estimate residual value. The revised estimate of useful life was decided upon prior to recording
depreciation for the period ended December 31, 1994.
JANUARY 2009
Q # 3 (a) what is the distinction between a capital expenditure and revenue expenditure?
Q3 (b) Ogilvie Construction traded in a used crane on a similar new one. The original cost of the old
crane was $ 60,000, and in both Ogilvie’s accounting records and income tax returns the accumulated
depreciation amounted to $ 48,000. The new crane cost $ 75,000, but Ogilvie was given a trade-in
allowance of 4 15,000.
Required:
a. What amount of cash must Ogilvie pay?
b. Compute the gain or loss that would be reported on disposal of the old crane under generally accepted
accounting principles.
c. Record journal entry for exchange of crane.
June 2009
Q3 (a) On January 2, 1991, Kelly Camera Shop disposed of a machine that cost $ 84,000 and had been
depreciated $ 45,250. Present the general entries to record the disposal under each of the following
unrelated assumptions:
a. The machine was sold for $ 32,500.
b. The machine was trade in a new machine of like purpose having a $ 117,000 cash price. A $ 40,000
trade-in Allowance was received, and the balance was paid in cash.
c. A %$ 30,000 trade-in allowance was received for the machine on a new machine of like purpose
having a $ 117,000 cash price. The balance was paid in cash.
d. The machine was traded for vacant land adjacent to the shop to be used as parking lot. The land had
a fair value of $ 75,000 and Kelly paid $ 25,000 cash in addition to giving the seller the machine.
Q3 (b) On January 1, 1991, Lake Excavating Services Purchased a trencher for $ 500,000. The machine
was expected to last five years and has a salvage value of $ 50,000. Calculate depreciation expense for
1992, using
(a) the straight-line method and
(b) the declining balance method, assume rate of depreciation 20%.
January 2010
Q # 5 The Yasir Company acquired an asset that had a cost of Rs. 130,000. The asset is being
depreciated over five years using the sum-of-the-years-digits methods of depreciation. The asset has an
3. 3 | Page
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estimated salvage value of Rs. 10,000. Make the general entry to record the disposition of the asset
under each of the following independent assumptions:
a) At the end of the third year, the asset was sold for Rs. 38,000.
b) At the end of the second year, the asset was traded in for a similar one. The new asset had a list price
of Rs. 150,000. The firm received a trade-in allowance of Rs. 60,000. Assume that the trade-in allowance
represents the fair market value of the old asset.
c) At the end of the sixth year, the asset was retired and given to a scrape dealer in exchange for Rs.
1,000.
d) At the end of the third year, the asset was traded in for a similar one with a list price of Rs. 80,000.
The firm paid Rs. 62,000 cash. The trade-in allowance represented the fair market value of the old asset.
December 2010
Q # 2 Grain Products uses straight-line depreciation on all its depreciable assets. The accounts are
adjusted and closed at the end of calendar year. On January 4, 1999, the corporation purchased
machinery for cash at a cost of $80,000. Its useful life was estimated to be 10 years with a residual value
of $12,000. Depreciation for partial years is recorded to the nearest full month. In 2001, after almost 3
years of experience with the equipment, management decided that the estimated life of the equipment
should be revised from 10 years to 6 years. No change was made in the estimated of residual value. The
revised estimate of useful life was decided on prior to recording depreciation for the period ended
December 31, 2001.
Required:
a) Prepare journal entries in chronological order for the above events, beginning with the purchase of the
machinery on January 4, 1999. Show separately the depreciation for 1999, 2000 and 2001.
b) What factors may have caused the company to revise its estimate of the equipment’s useful life?
June 2011
Q # 2 Gemini Fitness Club used a straight-line deprecation for a machine that cost $43,500, under the
assumption it would have a four-year life and a $4,500 trade-in value. After two years, Gemini
determined that the machine still had three more years of remaining useful life, after which it would have
an estimated $3,600 trade-in value. Required:
1) Calculate the machine’s book value at the end of its second year.
2) Calculate the amount of depreciation to be charged during each of the remaining years in the
machine’s revised useful life.
January 2012
Q # 3 A tractor which cost $30,000 had an estimated useful life of 5 years and an estimated salvage
value of $10,000. Straight-line depreciation was used.
Required:
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Give an entry (in general journal form) required by each of the following alternative assumptions:
1. Tractor was sold for cash $ 19,500.
2. The tractor was traded-in after 3 years on another tractor with a fair market value of $37,000. The
allowance was $ 21,000. (Record in implied gain or loss).
3. The tractor was scrapped after 7 year’s use. Since scrape dealers were unwilling to pay anything for
the tractor, it was given to a scrape dealer for his services in removing it.
July 2012
Q # 2 Gemini Fitness Club used a Straight-line deprecation for a machine that cost $43,500, under the
assumption it would have a four-year life and a $4,500 trade-in value. After two years, Gemini
determined that the machine still had three more years of remaining useful life, after which it would have
an estimated $3,600 trade-in value.
Required:
1) Calculate the machine’s book value at the end of its second year.
2) Calculate the amount of depreciation to be charged during each of the remaining years in the
machine’s revised useful life.
December 2012
Q # 2 The following data are obtained from Delta Company Ltd.
Cost of depreciable asset Rs. 20,000
Less: Estimated residual value 2,000
Total amount to be depreciated Rs. 18,000
Estimated useful life 4 years
Depreciation expense each year (18,000/4) Rs. 4500
Required:
Prepare a depreciation schedule under 50% Diminishing Balance Method.
Assuming the asset was sold for cash on 3rd year December 31 for Rs. 3,000, record
i) Adjusting entry on 3rd year December 31,
ii) Sale of the asset
June 2013
Q # 2 (a) Faraz & Co. acquired a new delivery truck at the beginning of its current fiscal year. The truck
cost Rs. 52,000 and has an estimated useful life of 4 years and estimated salvage value of Rs. 8,000.
Required:
(a) Calculate depreciation for last three years of the truck’s life using:
i. Straight-line depreciation
ii. Declining-balance depreciation and rate based on the given life of the truck.
(b) Calculate the truck’s net book value at the end of its third year of use under each depreciation
method.
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(c) Assume the Faraz Co. had no more use for the truck after the end of the third year and that at
the beginning of the fourth year it had an offer from a buyer who was willing to pay Rs. 12,400
for the truck. Show computation pass entry for the sale of truck at the end of third year.
December 2013
Q #3 (a) A plant asset cost Rs. 27,000 when it was purchased on Jan. 1, 2008. It was depreciated by
the straight-line method based on a 9-year life with no salvage value. On June 30, 2013, the asset was
discarded with no cash proceeds. What gain loss should be recognized on the retirement?
b) On June 30, 2010, B. Co sells furniture for Rs 60,000 cash. The office furniture originally cost Rs
150,000 when purchased on Jan 01, 2005. Depreciation recorded by the straight-line method over 10
years with a salvage value of Rs 15,000.
i) What gain or loss should be recognized on the sale?
ii) If the asset sold for Rs 80,000 pass the entries for both conditions.
c) H Co. exchanges a used truck (original cost, Rs 41,000) plus Rs 20,000 cash for a new truck casting
Rs. 45,000. At the time of exchange, accumulated depreciation on the used truck is Rs 23,000. What gain
or loss should H recognize? Pass the entry.
June 2014
Q # 2 Crown developers disposed of plant assets in the following transactions. Pass the entries for all of
the cases:
1) Office equipment costing Rs. 140,000 was given to scrap dealer. No proceeds were received from
the dealer. At the date of disposal accumulated depreciation on the equipment was amounted to
Rs 119,000.
2) Crown sold land and a building for Rs 6,300,000 receiving 2,000,000 in cash and a 5 year 10%
note receivable for the remaining balance. Crown’s accounting record shows the following
amounts. Land 1,200,000, Building 3,500,000. Accumulated depreciation on building was
1,150,000.
3) Crown traded in an old truck for a new one. The old truck had cost Rs 1,110,000 and
accumulated depreciation amounted to Rs. 700,000. The list price of the new truck was
1,700,000. Crown received Rs. 500,000, trade in allowance.
June 2015
Q # 4 Equipment acquired at a cost of Rs 126,000 and a book value of Rs 42,000. Journalize the
disposal of the equipment under the following independent assumptions.
(a) The equipment had no market value and was discarded.
(b) The equipment is sold for Rs 53,000.
(c) The equipment is sold for Rs 27,000.
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(d) The equipment is traded-in for a similar asset. The list price of the new equipment is Rs 63,000.