intermediate accounting 1 // There are 3 questions in a photo Instruction: Answer all the Questions. Each question carries Five (5) Marks (10 Q*5 Marks-50

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intermediate accounting 1 // There are 3 questions in a photo

Instruction: Answer all the Questions. Each question carries Five (5) Marks (10 Q*5 Marks-50 Marks) Use the following information for the questions 1 2 & 3 On 1" January 2015 Musheer LLC Company started a business of selling and buying Garments products at Muscat. The company has brought few assets while starting the business namely cash balance RO 32250, Bank balance RO 29750, short term investments RO 22150. The company was running successfully the garments products business and started earning good profits and the company gradually improved their business during the first six months also purchased a machinery 1"March 2015 RO 175690 and installation 11810 and life of the machine is 5 years with scrap value of RO 22000. The company has brought additional capital of RO 1050000 in addition to the regular profits and purchased a building for RO 142750 on 1" September 2015 and a loan also borrowed from the Bank Muscat by showing the past months profits on October 2015 of RO 105000 at 7% interest payable every year. The company with the positive progress in the garment products business they also started a new branch at Ibra with a capital of RO 122900. The company had bought one Equipment on 1"June 2016 in another branch for RO 97280 with the installation value of RO 22820 which has estimated life of 5 years with the estimated scrap value of The Company of 13500 and the equipment is depreciated at 25% per annum on reducing balance method/written down value method. The Company closes it books of account every year on 31" December and Mr. Muneer a new accountant has been appointed in the company who is a fresh Bachelor Graduate in accounting with high GPA but he wants your expertise knowledge to understand the concept of the depreciation and You are required to prepare depreciation schedule for the following non-current assets showing all the working notes Q1. Equipment for five years under reducing balance method or written down value method (5 Marks) Q2.Machinery for five years under Straight Line Method Marks) Q3. Building for five years under straight line method