need solution as soon as possible

Task #1 - PP&E:

On Jan 1, 2022 A&W (A&W) wants to purchase a new Bitcoin Mining Technology. The computers will cost $130,000 to purchase. A&W purchased the computers on Jan 1, 2022 with cash.

The computers will have a useful life that is based upon the hours it is operated. Based upon the manufacturer the computers will last 26,000 hours and at that time the technology will be outdated. A&W purchased the computers on Jan 1, 2022 with cash.

A&W has done some estimates and has come up with the following usage:

Year Actual % of Average Hours Total Hours Per

Day

2022

7,920

33.00%

21.70

2023

8,640

36.00%

23.67

2024

7,440

31.00%

20.38

Total 24,000 33.33%

A&W knows they cant run the computers for 26,000 hours over the next 3 years, and instead can only run them for 24,000 hours due to maintenance that needs to occur. As they are only running them for 24,000 hours A&W will be able to sell some of the parts of the computers for $10,000 in 2025 (hence once the computer is no long usable).

Based upon their analysis A&W determined the average usage % per years is 30%

A&W is unsure how to expense this asset and needs your help.

Current:

Determine the accounting entries for the purchase and depreciation of the ma- chine for each of the following method of depreciation.

Future:

Assume on Jan 10, 2025 and GNC can sell the machine for $8,000. Determine the journal entry to record the sale.

Required - Complete the above using each of the depreciation methods provided below for 2022, 2023, 2024 and 2025:

a) Journal Entries - Straight-line

b) Journal Entries - Declining balance

c) Journal Entries - Activity

2

Business Administration 285 Assignment #3

Fall 2021

IGNORE THE WORK COMPLETED IN TASK #1

Task #2 - Financial Statements:

A&W. currently wants to increase their bank financing and in order to do so they are being required by the bank to provide more accurate financial statements. The bank is requiring that A&W Inc. prepare the following financial statements:

a) Statement of Income - Multi-Step format

b) Statement of Changes in Equity

c) Statement of Financial Position (Current and Non-Current)

Using the information provided please prepare the above-required financial statements for year-ending Dec 31, 2022.

Task #3 - Financial Statements:

A&W Inc. currently wants to increase their bank financing and in order to do so they are being required by the bank to provide more accurate financial statements. The bank is requiring that A&W Inc. prepare the following financial statement:

a) Statement of Cash Flow

Using the information provided please prepare the above-required financial statement for year-ending Dec 31, 2022.

support for task 1 and 2

financial statement

A&W Trial Balance as at December 31, 2022 Account DescriptionDebitCreditNotes Cash54300 Accounts receivable5000(1) Prepaid - Power800(2) Investments300(3) PP&E - Computer equipment4,00000 Accumulated depreciation - PP&E - Computer equipment03,2000 Accounts payable02000 Salaries payable080(4) Bank loan0500(5) Common shares 01000 Retained earnings - Jan 1, 202201,3500 Dividends paid50000 Sales04,5000 Interest income0100 Dividend income050 Capital gain on the sale of an asset080 Cost of goods sold - Power1,7000(6) Repairs and maintenance14000 Salaries and wages1,3500(7) Administrative and interest expenses 5000 Depreciation expense90000 Travel expense9000 Income taxes7000 9,9539,953 Notes (1)All of A&W's sales are done on account with customers. (2)

A&W prepays for its power bills as they receive a discount when paying in advance.

(3)

The investments will be held till 2031. During 2022 the business sold some investments for $5 and received the proceeds in cash. The investments sold had a cost of ?????

(4)

A&W doesn't collect it's final payments from customers till Jan 2023, therefore A&W doesn't pay it's employee's their final wages till early 2023.

(5)

The loan wll be paid back in full by the end of 2029, with $180 of the principle being paid back in 2022.

(6)

Power directly relates to operating the mining machines and should be included as part of the gross margin.

(7)

The employees are paid solely based on Bitcoin they mine. The salaries and wages are paid at a rate of 30% of sales.

Jan 1, 2022 balances relevant to the "Statement of Cash Flow": Dr.Cr. Cash430 Accounts receivable 6000 Prepaid - Power1100 Investments350 Accounts payable0300 Salaries payable0110 Other 2022 events

(a) During 2022 the business sold some equipment for $30 and received the proceeds in cash. The equipment had a NBV of $22.

(b) The business issued $10 of new shares during 2022. (c) During 2022 the business paid $160 to reduce its loan balance.