Juicy Wiggle Limited, a company involved in the manufacture of energy juices, purchased new manufacturing machine...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Juicy Wiggle Limited, a company involved in the manufacture of energy juices, purchased new manufacturing machine on the 1 March 2017 for an amount of R275 000. The machine had a useful life of 5 years on this date and a RO residual value. The machine had a carrying value of R165 000 on the 28th February 2019. On the 1 March 2019, the residual value of the equipment was now estimated to be R20 000. Required: 1. Prepare the journal entries in respect of depreciation for the year ended 29th February 2020 using the Re-allocation Method assuming no journals had been passed yet. (10) 2. Prepare the Profit before tax note AND the note in terms of IAS 8, the statement on Accounting policies, estimate and errors for the year ended 29th February 2020 (10) All workings must be shown. Include comparatives where applicable. Ignore tax implications. Juicy Wiggle Limited, a company involved in the manufacture of energy juices, purchased new manufacturing machine on the 1 March 2017 for an amount of R275 000. The machine had a useful life of 5 years on this date and a RO residual value. The machine had a carrying value of R165 000 on the 28th February 2019. On the 1 March 2019, the residual value of the equipment was now estimated to be R20 000. Required: 1. Prepare the journal entries in respect of depreciation for the year ended 29th February 2020 using the Re-allocation Method assuming no journals had been passed yet. (10) 2. Prepare the Profit before tax note AND the note in terms of IAS 8, the statement on Accounting policies, estimate and errors for the year ended 29th February 2020 (10) All workings must be shown. Include comparatives where applicable. Ignore tax implications.
Expert Answer:
Answer rating: 100% (QA)
Before answering this question we must first understand what the depreciation is Depreciation is an ... View the full answer
Related Book For
Cost Management Measuring Monitoring and Motivating Performance
ISBN: 978-0470769423
2nd Canadian edition
Authors: Leslie G. Eldenburg, Susan Wolcott, Liang-Hsuan Chen, Gail Cook
Posted Date:
Students also viewed these accounting questions
-
MacHine Company produces a part used in the manufacture of farm machinery. The following information pertains to the past three years of operations. MacHine Company uses FIFO costing. REQUIRED A....
-
A constant objective in the manufacture of contact lenses is to improve those features that affect lens power and visual acuity. One such feature involves the tooling from which lenses are ultimately...
-
A constant objective in the manufacture of contact lenses is improving the level and variation for those features that affect lens power and visual acuity. One such feature involves the tooling from...
-
just finished the business plan of his start-up company. According to the projections he carried-out, the initial investment is 1,500,000 SAR (assume that we are in the beginning of 2023), which will...
-
Develop three recommendations to help researchers increase the response rates in direct mail and telephone administered surveys.
-
If the strPresident variable contains the string Abraham Lincoln, what value will the strPresident.IndexOf("Lincoln") method return? a. 1 b. 8 c. 9 d. True
-
Show that \[\int_{C} \frac{d z}{(z-1-i)^{n+1}}=\left\{\begin{array}{cc} 0, & n eq 0 \\ 2 \pi i, & n=0 \end{array} ight.\] for \(C\) the boundary of the square \(0 \leq x \leq 2,0 \leq y \leq 2\)...
-
Cookie Creations is gearing up for the winter holiday season. During the month of December 2011, the following transactions occur. Dec. 1 Natalie hires an assistant at an hourly wage of $8 to help...
-
Question 1 Fred Murray has the following income and expenses during the tax year 2019/20: i) Fred has been working as a manager in a major music club earning 55,000 per year. He is provided with a...
-
It is now January 2018. The year 2017 finished well. The finalized year-end financial statements for 2017 are provided in the excel file associated with this assignment. Randolf and Tenisa at Comfy...
-
A cone has its tip at the point (0, 0, 5) and its base the disk D, x + y 9, in the plane z = 1. The surface of the cone is the curved and slanted face, S, oriented upward, and the flat base, D,...
-
Explain the principles and applications of root cause analysis (RCA) in quality control, examining methods such as the "5 Whys," fishbone diagrams, and fault tree analysis for identifying underlying...
-
Examine the integration of renewable energy sources into the electrical grid, focusing on the challenges of grid stability, demand response, and smart grid technologies to ensure reliability and...
-
What are your thoughts on reduction to restructure the organization? Can this be good or bad? Explain in details.
-
Explore the role of ocean energy technologies, such as wave energy converters and tidal stream generators, in diversifying renewable energy sources, emphasizing the engineering challenges,...
-
Explore the principles of statistical process control (SPC) in manufacturing systems, discussing the use of control charts, process capability analysis, and process performance indices to monitor,...
-
* please solve part "C" Weighted-Average With allcalculation steps !!!! 10A. Read Books has the following transactions in August related to merchandise inventory. i. (Click the icon to view the...
-
Should we separate the debt and equity features of convertible debt? Team 1: Pro separation: Present arguments in favor of separating the debt and equity features of convertible debt. Team 2: Against...
-
Snow Blowers produces and sells snow blowers. Production levels are high in the summer and beginning of fall and then taper off through the winter. Sales are high in the fall and early winter and...
-
Refer to the information in Problem 5.48. Suppose you work for a CA firm and are part of the team auditing the financial statements of Flexible Manufacturers. You have been assigned the...
-
Nova Scotia Lobsters Company is a privately held company that buys lobsters from local fishermen and then delivers them to restaurants in several of Nova Scotia's larger cities. The owners use...
-
To determine whether your firm should change its dividend policy, based on an analysis of its investment opportunities and comparable firms. Key Questions How much could this firm have returned to...
-
What are the current trends in software platforms?
-
One early morning in the fall of 2007, Dennis Jonsson was reading the latest reports on global warming and thought that someone ought to do something about it. Then he realized that he and his fellow...
Study smarter with the SolutionInn App