An item of equipment bought in November 1999 for Shs.105,000 is now recognised to have a...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
An item of equipment bought in November 1999 for Shs.105,000 is now recognised to have a useful life of at least 20 years. b) A vehicle bought in June 2011 for Sh.85,000 was traded in at a value of Sh.44,000 in part exchange for a new vehicle costing Shs.140,000. Required: a) Prepare a schedule of fixed assets movements and balances suitable for inclusion in the company's published accounts for the year to 30th September, 2014. Show clearly the amount to be charged against the year's profits and the balances to be shown in the balance sheet. Explain why: i) ii) it is considered necessary to provide for depreciation; some business enterprises do not provide depreciation on freehold land and buildings. (20 marks) An item of equipment bought in November 1999 for Shs.105,000 is now recognised to have a useful life of at least 20 years. b) A vehicle bought in June 2011 for Sh.85,000 was traded in at a value of Sh.44,000 in part exchange for a new vehicle costing Shs.140,000. Required: a) Prepare a schedule of fixed assets movements and balances suitable for inclusion in the company's published accounts for the year to 30th September, 2014. Show clearly the amount to be charged against the year's profits and the balances to be shown in the balance sheet. Explain why: i) ii) it is considered necessary to provide for depreciation; some business enterprises do not provide depreciation on freehold land and buildings. (20 marks)
Expert Answer:
Answer rating: 100% (QA)
a Date Particulars Dr Cr 300999 Dr Cash CrBank Shs105000 Shs105000 300999 DrCash DrCash Cr Expense C... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
The equipment was expected to have a useful life of three years, or 25,000 operating hours, and a residual value of $4,500. The equipment was used for 12,000 hours during 2008, 9,000 hours in 2009,...
-
A company used straight-line depreciation for an item of equipment that cost RM12,000, had a residual value of RM2,000, and had a five-year useful life. After depreciating the asset for three...
-
An asset costs $825,000, will have a useful life of 10 years, and a salvage value at that time of $165,000. The before-tax net revenue will be $200,000 per year. The company's after-tax MARR is 15%...
-
A U.S Company David Inc. sold merchandise to Fernando SA for 10,000 on September 14, 2017. The spot rate for euro is $0.720 on this day. On October 12, 2018, David Inc. purchased merchandise from...
-
Two forces are applied to an eye bolt fastened to a beam. Determine graphically the magnitude and direction of their resultant using (a) The parallelogram law, (b) The triangle rule. 4.5 kN 50 6 kN
-
The sugar content in grams of three different brands of candy bars is shown. At α = 0.05, is there a difference in the number of calories in each type? Brand B 9.2 Brand A 7.6 9.3 Brand...
-
Classify accounts is used to specify the account numbers needed to generate the payroll journal entries. (True/False)
-
On June 24, 2012, Sudweeks Company sold merchandise to Brooke Bowman for $70,000 with terms 2/10, n/30. On June 30, Bowman paid $39,200 on her account and was allowed a discount for the timely...
-
XYZ has a joint processing activity that involves the production of three sandwiches Sandwich A Sandwich B Sandwich C The date related to costs and sales values are as follows: Cost Data: Cost 1:...
-
The decision maker wishes to maximize the total benefit associated with three activities X, Y, and Z. The price per unit of activities, X, Y, and Z is $1, $2, and $3 respectively. The following table...
-
S. Pagan and T. Tabor share income on a 7:3 basis. They have capital balances of $120,000 and $51,000, respectively, when W. Wolford is admitted to the partnership. Prepare the journal entry to...
-
Explain me in detail that Where can i use Leading Indicators and what importance does it have.
-
. If 3 2 % of the residents of Toronto wear glasses, 1 1 % have green eyes and wear glasses, and 4 5 % have neither green eyes nor wear glasses, what is the probability that a randomly selected...
-
1.1 Discuss the firm's dividend pay-out policy and whether it has an impact on share price. 1.2 Explain why the different sources of capital have different levels of risk and return. 1.3 Discuss...
-
You are going to open a burger point. give a list of the costs that are important for the performance of your Future Business. Explain why each cost is important. How those costs impact the...
-
What is the price of a 30-year, 7% coupon rate, $1,000 face value bond that pays interest semi-annually, if the yield to maturity on similar bonds is 7.5%?
-
The observation is that a security now has a return rate of 0.12. It has a beta of 1.5. The risk-free rate is 0.05 and S&P 500 index fund expected rate of return is 0.09. According to the Capi...
-
Consider the reaction of acetic acid in water CH 3 CO 2 H(aq) + H 2 O(l) CH3CO 22 (aq) + H 3 O + (aq) where Ka 5 1.8 3 1025. a. Which two bases are competing for the proton? b. Which is the stronger...
-
During 2013, Lacee Enterprises had gross sales of $247,000. At the end of 2013, Lacee had accounts receivable of $83,000 and a credit balance of $5,600 in Allowance for Bad Debts. Lacee has used the...
-
On January 3, 2012, Airflow Corporation, a company selling stunt kites, purchased a large number of personal computers. The cost of these computers was $170,000. On the date of purchase, Sandy's...
-
The company owns 2,000 shares of Stock A and 6,000 shares of Stock B. The company received dividends of $1.75 per share from Stock A and $0.97 per share from Stock B. The company classifies Stock A...
-
Name the various components of a measurement system.
-
Kemico Ltd manufactures a variety of chemicals which it supplies in bulk to industrial customers. Its factory at Gritborough employs 50 people, and its annual turnover in 1995 was 7.5M. During 1995,...
-
Define the term measurement.
Study smarter with the SolutionInn App