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Hi, help me answer this question by tomorrow morning ya. And also show me step by step calculations as I'm a slow learner :( Chapter
Hi, help me answer this question by tomorrow morning ya. And also show me step by step calculations as I'm a slow learner :( Chapter PPE, Financial Accounting Reporting 2. ONLY ANSWER QUESTION B) & C). I have highlighted the main points that is a bit tricky tho. Question B) must calculate the depreciation for equipment & also the replacement of equipment, then provide journal entry. For Question C) intangible assets, must calculate both patent & sales order & prepare journal entry. Thank youuu!
Buy-N-Buy Bhd (BNB) is an e-business that was established on 1 July 2017 and has recently listed en main board or Bursa Malaysia. The company closes its accounts on 30 June each year and the schedule below is a partial statement of financial position of the company as at the financial yellt end 2019 RM Freehold land 3,000,000 Warehouse 2,000,000 Accumulated depreciation - Warehouse (200,000) Equipment 350,000 Accumulated depreciation - Equipment (105,000) Patent 600,000 Acoumulated amortization - Patent (240,000) Accumulated impairment loss - Patent (50,000) Additional information: 1) BNB decided to construct a new office building on May 2019 and the construction is expected to complete on 31 December 2020. The company obtained a 3-year term loan of RM300,000 with 5% interest rate from Mavi Bank on 1 August 2019 to finance the construction of the office building. The following expenditures were incurred during the construction period: Date I May 2019 1 June 2019 30 September 2019 4 February 2020 28 June 2020 12 November 2020 RM 100.000 120,000 150,000 50,000 80,000 90,000 In addition, BNB has an outstanding loan, 6%, 5-year note payable of RM500,000), dated 1 October 2017 2) On 1 January 2020, BNB purchased a new equipment at a cost of RM200,000 to replace an old equipment which was purchased when the company was firstly established. The book value of the old equipment on this date was RM56,000. The company chose to dispose the old equipment and net-off the cost of the new equipment against the one-off subsidy of RM50,000 awarded by the government. government grant Cintangiblos acset) 3) On 1 December 2019, BNB purchased an online sales order control computer package for RM100,000 from Ercel-Com. Included in the purchase price is a maintenance service of 3 years for RM3,000 each year. BNB employed the services of a consultant to install and test the software for RM2,000. Gintangible asset) 4) On 30 June 2020, BNB determines the present value of cash flows expected from the use of the potent to be RM250,000 and the fair values less cost to sell will be RM245,000. The useful life of the patent following the impairment test on 30 June 2019 is 4 years. 5) The accounting policies related to the depreciation of the assets are as follows: Warehouse Equipment 15% 6) Amortisation is recognised on a straight-line basis over the estimated useful lives of intangible assets of 5 years from the date that they are available for use. REQUIRED: (Round your answer to the whole number) Calculate the amount of interest to be capitalised for the financial years 2019 and 2020. Prepare the journal entries to record the replacement and depreciation of the equipment on 1 January 2020. Prepare the journal entries related to the intangible assets for the financial year 2020. Show all the workings. (c)
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