CACN012- Accounting for Plant assets. 1) Three factors affect the computation of depreciation: cost, useful life, and residual value. Instructions Identify each statement as true or false. If false, indicate how to correct the statement. IL IV. VI. VII. Unrecorded transactions: 1. On May 1, 2020, Raymond purchased equipment for R13,000 plus sales taxes of R780 (all paid in cash). On July 1, 2020, Raymond sold for R3,500 equipment which originally cost R5,000. Accumulated depreciation on this equipment on January 1, 2020, was R1,800; 2020 depreciation prior to the sale of the equipment was R450. On December 31, 2020, Raymond sold on account R9,400 of inventory that cost R6,600. Raymond estimates that uncollectible accounts receivable year-end is R4,000. V. The note receivable is a one-year, 8% note dated April 1, 2020. No interest has been recorded. The balance in prepaid insurance represents payment of a R4,400 6-month premium on October 1, 2020. The building is being depreciated using the straight-line method over 40 years. The residual value is R20,000. VIIL The equipment owned prior to this year is being depreciated using the straight- line method over 5 years. The residual value is 10% of cost. The equipment purchased on May 1, 2020, is being depreciated using the straight-line method over 5 years, with a residual value of R1,000. The patent was acquired on January 1, 2020 and has a useful life of 10 years from that date. Unpaid salaries and wages on December 31, 2020, total R2,200. The unearned rent revenue of R6,000 was received on December 1, 2020, for 4 months' rent. Both the short-term and long-term notes payable is dated January 1, 2020 and carry a 9% interest rate. All interest is payable in the next 12 months. XIV. Income tax expense was R17,000. It was unpaid on December 31. Instructions a. Prepare a worksheet to use it to prepare financial statements for the period ended 31 December 2020. Handwritten on 8 money column worksheet IX. X. XI. XII. XIII. CACNO12- Accounting for Plant assets. b. Based on your worksheet in (a) prepare adjusting journal entries for the transactions listed above. c. Prepare the statement of profit or loss for the reporting period ended 31 December 2020 d. Prepare the statement of changes in equity for the period ended 31 December 2020. e. Prepare the statement of financial position as of 31 December 2020. Ieubmit the answer in the Relinlovided) CACN012- Accounting for Plant assets. 1) Three factors affect the computation of depreciation: cost, useful life, and residual value. Instructions Identify each statement as true or false. If false, indicate how to correct the statement. IL IV. VI. VII. Unrecorded transactions: 1. On May 1, 2020, Raymond purchased equipment for R13,000 plus sales taxes of R780 (all paid in cash). On July 1, 2020, Raymond sold for R3,500 equipment which originally cost R5,000. Accumulated depreciation on this equipment on January 1, 2020, was R1,800; 2020 depreciation prior to the sale of the equipment was R450. On December 31, 2020, Raymond sold on account R9,400 of inventory that cost R6,600. Raymond estimates that uncollectible accounts receivable year-end is R4,000. V. The note receivable is a one-year, 8% note dated April 1, 2020. No interest has been recorded. The balance in prepaid insurance represents payment of a R4,400 6-month premium on October 1, 2020. The building is being depreciated using the straight-line method over 40 years. The residual value is R20,000. VIIL The equipment owned prior to this year is being depreciated using the straight- line method over 5 years. The residual value is 10% of cost. The equipment purchased on May 1, 2020, is being depreciated using the straight-line method over 5 years, with a residual value of R1,000. The patent was acquired on January 1, 2020 and has a useful life of 10 years from that date. Unpaid salaries and wages on December 31, 2020, total R2,200. The unearned rent revenue of R6,000 was received on December 1, 2020, for 4 months' rent. Both the short-term and long-term notes payable is dated January 1, 2020 and carry a 9% interest rate. All interest is payable in the next 12 months. XIV. Income tax expense was R17,000. It was unpaid on December 31. Instructions a. Prepare a worksheet to use it to prepare financial statements for the period ended 31 December 2020. Handwritten on 8 money column worksheet IX. X. XI. XII. XIII. CACNO12- Accounting for Plant assets. b. Based on your worksheet in (a) prepare adjusting journal entries for the transactions listed above. c. Prepare the statement of profit or loss for the reporting period ended 31 December 2020 d. Prepare the statement of changes in equity for the period ended 31 December 2020. e. Prepare the statement of financial position as of 31 December 2020. Ieubmit the answer in the Relinlovided)