Chapter 9: Fixed assets: Utilization & Impairment 9.1 Manufacturing company, In May/N with the situation on the repair of fixed assets are as follows: Balance at the beginning of the month of the account 242 (detailed cost overhaul of fixed assets): 10.000. Following is situation related to repairing of fixed assets during the month 1. Allocate the cost of repairs of fixed assets incurred last month: 2000 which is assigned to the cost of selling department 2. Company had an production equipment fixed, amount payable to the fixing servicer is 10.000 (without 10% VAT). Company also issued spare parts from warehouse replacing broken part of this equipment, 2.000; Other expenses related to repairing activities are paid in cash on hand, 1.000. The repairing process is completed and its costs are expected to be allocated during 5 months from this month. 3. Repaired fixed assets in Administration department. Overhaul costs incurred are: - Materials issued from warehouse: 20.000 - Labor costs: 4.000 -Spare parts (purchased directly from suppliers): price without tax is 26.000, VAT 10% paid by bank transfer. -Other expenses is 1,200 in cash. Repair work has been completed. Overhaul expenses is expected to cost allocation for 24 months starting from this month. 4. Upgraded 1 fixed asset in the production department. Paid cash in bank to the supplier of the upgrading services, 120.000 (excluded VAT rate at 5%). Issuing spare parts to upgrade the fixed asset, 40,000. At the end of the month, upgrading activities was completed and all cost fulfilled the requirement to be capitalized. This activities is sponsored by the investment and development fund. 5. The total cost of regularly repairs of machinery at production department in the month, charged to expenses in the month: Materials: 2.000; workers: 3.000, depreciation: 2.000 and other expenses in cash: 1.500. Requirements: Established the accounting entries for transactions above? 9.2 On September 16, 20X2, Company purchased machinery for 115.000.000 VND paid by cash in bank. The estimated service life of the machinery is 10 year and the estimated residual value is 5.000.000 VND. Required: a/Calculated depreciation of this machinery for September of 20X2 using straight-line method. b/Provided that new machinery is used for manufacturing; depreciation for other fixed assets for manufacturing (excluded the new machinery) is 40.000.000 VND. Prepare journal entries for depreciation expense of manufacturing activities in September. Chapter 9: Fixed assets: Utilization & Impairment 9.1 Manufacturing company, In May/N with the situation on the repair of fixed assets are as follows: Balance at the beginning of the month of the account 242 (detailed cost overhaul of fixed assets): 10.000. Following is situation related to repairing of fixed assets during the month 1. Allocate the cost of repairs of fixed assets incurred last month: 2000 which is assigned to the cost of selling department 2. Company had an production equipment fixed, amount payable to the fixing servicer is 10.000 (without 10% VAT). Company also issued spare parts from warehouse replacing broken part of this equipment, 2.000; Other expenses related to repairing activities are paid in cash on hand, 1.000. The repairing process is completed and its costs are expected to be allocated during 5 months from this month. 3. Repaired fixed assets in Administration department. Overhaul costs incurred are: - Materials issued from warehouse: 20.000 - Labor costs: 4.000 -Spare parts (purchased directly from suppliers): price without tax is 26.000, VAT 10% paid by bank transfer. -Other expenses is 1,200 in cash. Repair work has been completed. Overhaul expenses is expected to cost allocation for 24 months starting from this month. 4. Upgraded 1 fixed asset in the production department. Paid cash in bank to the supplier of the upgrading services, 120.000 (excluded VAT rate at 5%). Issuing spare parts to upgrade the fixed asset, 40,000. At the end of the month, upgrading activities was completed and all cost fulfilled the requirement to be capitalized. This activities is sponsored by the investment and development fund. 5. The total cost of regularly repairs of machinery at production department in the month, charged to expenses in the month: Materials: 2.000; workers: 3.000, depreciation: 2.000 and other expenses in cash: 1.500. Requirements: Established the accounting entries for transactions above? 9.2 On September 16, 20X2, Company purchased machinery for 115.000.000 VND paid by cash in bank. The estimated service life of the machinery is 10 year and the estimated residual value is 5.000.000 VND. Required: a/Calculated depreciation of this machinery for September of 20X2 using straight-line method. b/Provided that new machinery is used for manufacturing; depreciation for other fixed assets for manufacturing (excluded the new machinery) is 40.000.000 VND. Prepare journal entries for depreciation expense of manufacturing activities in September