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could you please explain thoroughly how to solve it, I have a ready answers but dont know how they got it? Question 11.2 On 1
could you please explain thoroughly how to solve it, I have a ready answers but dont know how they got it?
Question 11.2 On 1 October 2014 Ballina acquired a machine under the following terms. Hours E Manufacturer's base price 2,500,000 Trade discount (applying to base price only) 20% Early settlement discount taken (on the payable amount of the base cost only) Freight (carriage) charges 30,000 Installation cost 52,000 Stall training in use of machine 85,000 Pre production testing 45,000 Purchase of a three year maintenance contract 120,000 Estimated residual value 50,000 Estimated life in machine hours 15,000 Hours used-year ended 30 September 2015 3,000 - year ended 30 September 2016 3,600 -year ended 30 September 2017 (see below) 1,500 On 1 October 2016 Ballina decided to upgrade the machine by adding new components at a cost of 410,000, This upgrade led to a reduction in the production time per unit of the goods being manufactured using the machine. The upgrade also increased the estimated remaining life of the machine at 1 October 2016 to 9,000 machine hours and its estimated residual value was revised to 75,000 Prepare extracts from the income statement and statement of financial position for the above machine for each of the three years to 30 September 2017 Question 11.2 On 1 October 2014 Ballina acquired a machine under the following terms. Hours E Manufacturer's base price 2,500,000 Trade discount (applying to base price only) 20% Early settlement discount taken (on the payable amount of the base cost only) Freight (carriage) charges 30,000 Installation cost 52,000 Stall training in use of machine 85,000 Pre production testing 45,000 Purchase of a three year maintenance contract 120,000 Estimated residual value 50,000 Estimated life in machine hours 15,000 Hours used-year ended 30 September 2015 3,000 - year ended 30 September 2016 3,600 -year ended 30 September 2017 (see below) 1,500 On 1 October 2016 Ballina decided to upgrade the machine by adding new components at a cost of 410,000, This upgrade led to a reduction in the production time per unit of the goods being manufactured using the machine. The upgrade also increased the estimated remaining life of the machine at 1 October 2016 to 9,000 machine hours and its estimated residual value was revised to 75,000 Prepare extracts from the income statement and statement of financial position for the above machine for each of the three years to 30 September 2017Step by Step Solution
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