Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please answer a(b)(c)(d)questiontq. QUESTION 2 (20 marks) (25 minutes) Five Star Trading provided the Statement of Financial Position (extract) as at 30 September 2020 as

Please answer a(b)(c)(d)questiontq.
image text in transcribed
QUESTION 2 (20 marks) (25 minutes) Five Star Trading provided the Statement of Financial Position (extract) as at 30 September 2020 as follows: Below is the additional information related to company's non-current asset: (1) On 1 November 2020, Five Srar Trading acquired new equipment for RM56,000. After incurring transportation cost of RM1,500 and spending RM2,500 on installing the equipment the company is disappointed when it breaks down and cost RM750 to repair. The total cost of purchase is paid by cheque. (2) Due to obsolescence, Five Star Trading traded in old equipment for new sophisticated equipment on 1 April 2021. The cost of old equipment which was bought on 1 January 2019 for RM54,000 was trade in for RM42,000. This trade in value is to be set-off against the cost of the new equipment. The remaining amount of new equipment cost of RM28,000 was paid by cheque. (3) Depreciation for equipment had been provided at 10 percent per annum on reducing balance method on monthly basis. Required: For the year ended 30 September 2021, prepare: (a) Equipment account. (b) Accumulated depreciation for equipment account. (6 marks) (c) Disposal for equipment account. (8 marks) (d) Statement of Financial Position (extract). (3 marks) (3 marks) Note: All calculations must be rounded up to the nearest Ringgit Malaysia

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

Fraud examination

Authors: Steve Albrecht, Chad Albrecht, Conan Albrecht, Mark zimbelma

4th edition

538470844, 978-0538470841

More Books

Students also viewed these Accounting questions

Question

1 explain what leadership is.

Answered: 1 week ago

Question

=+1. Discuss the benefits of adopting HR valuation at Infosys.

Answered: 1 week ago