Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Jom Kawen Enterprise produces custom made door gifts for weddings. Due to increase in demand, Jom Kawen Enterprise wanted to purchase a machine from Heavy

  1. Jom Kawen Enterprise produces custom made door gifts for weddings. Due to increase in demand, Jom Kawen Enterprise wanted to purchase a machine from Heavy Machine Sdn Bhd based on the information provided below:

RM

Purchase price

95,000

Installation cost

1,500

Transportation cost

3,000

Inspection staff

500

Special lubricants for 3 years supplies

1,200

An agreement was signed between Jom Kawen Enterprise and Heavy Machine Sdn Bhd to purchased the machine at cash. A discount of 10% of the purchase price was given by the Heavy Machine Sdn Bhd to Jom Kawen Enterprise.

The machine was fully operated on 12 August 2017. It is the companys policy to depreciate the machine at 10%, straight-line method monthly basis.

Required:

  1. Calculate the initial costs.
  2. Calculate the net carrying amount of the machine as at 31 December 2018.
  3. On 30 April 2019, the machine was struck by lightning. The lightning has caused severe damage to the machine. As a result, the machine cannot be repaired. Hence, the management wanted to scrap the machine.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of External Auditing

Authors: Brenda Porter, David Hatherly, Jon Simon

3rd Edition

0470018259, 9780470018255

More Books

Students also viewed these Accounting questions

Question

5. Explain the supervisors role in safety.

Answered: 1 week ago

Question

7. Explain how an employee could reduce stress at work.

Answered: 1 week ago