Assignment 3 Sound Help Save & Ex Submit This question will be sent to your instructor for grading, Question 2 (90 marks 1 The financial year of Sandy Company Limited ends on 31 December. The company had the following transactions/ events relating to its machine during 2018, 2019 and 2020: 100 Dots 2018 1 January 1 January Purchased a machine at an invoice price of $480,000 Pald transportation costs of $6,000, maintenance fees of $1600 and installation costs of $2.400 for the machine Recorded annual depreciation using straight line method on the machine. The machine is estimated to have a useful life of 4 years and residual value of $30,000 31 December . 2019 1 January Paid $60,000 to improve the service potential of the machine. It is expected that the estimated useful life of the machine will be increased by 2 years to a total of 6 years. The residual value is estimated to be nil Paid $10,000 to repair the machine Recorded annual depreciation using straight line method on the machine 1 March 31 December 2020 30 June Due to the technological changes, the machine became no longer useful. The company sold the machine Yor $200.000 cash Required: MC 911 This question will be sent to your instructor for grading. . 1 1 a) Prepare journal entries to record the above transactions/events for 2018, 2019 and 2020. Show your calculations clearly. Narratives are not required. (Hint: depreciation on 30 June 2020 just before the machine is sold is calculated according to how many months the machine had been used in 2020). (70 marks) 100 points b) A junior accountant made the following comment about a machine. "Machine must be a property, plant and equipment because this is worth a lot of money. It is not possible for it to be an inventory supped Do you agree with the accountant? Explain your answer. (20 marks) eBook Rerences Short Answer Toolba navigation Igs Ini !!! > A | Assignment 3 Sound Help Save & Ex Submit This question will be sent to your instructor for grading, Question 2 (90 marks 1 The financial year of Sandy Company Limited ends on 31 December. The company had the following transactions/ events relating to its machine during 2018, 2019 and 2020: 100 Dots 2018 1 January 1 January Purchased a machine at an invoice price of $480,000 Pald transportation costs of $6,000, maintenance fees of $1600 and installation costs of $2.400 for the machine Recorded annual depreciation using straight line method on the machine. The machine is estimated to have a useful life of 4 years and residual value of $30,000 31 December . 2019 1 January Paid $60,000 to improve the service potential of the machine. It is expected that the estimated useful life of the machine will be increased by 2 years to a total of 6 years. The residual value is estimated to be nil Paid $10,000 to repair the machine Recorded annual depreciation using straight line method on the machine 1 March 31 December 2020 30 June Due to the technological changes, the machine became no longer useful. The company sold the machine Yor $200.000 cash Required: MC 911 This question will be sent to your instructor for grading. . 1 1 a) Prepare journal entries to record the above transactions/events for 2018, 2019 and 2020. Show your calculations clearly. Narratives are not required. (Hint: depreciation on 30 June 2020 just before the machine is sold is calculated according to how many months the machine had been used in 2020). (70 marks) 100 points b) A junior accountant made the following comment about a machine. "Machine must be a property, plant and equipment because this is worth a lot of money. It is not possible for it to be an inventory supped Do you agree with the accountant? Explain your answer. (20 marks) eBook Rerences Short Answer Toolba navigation Igs Ini !!! > A |