Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question Two On January 1, 2020, Lebosky Ple acquired a 200KVA generator at the cost of N125million and the vendor gave a The installation and

image text in transcribed
image text in transcribed
Question Two On January 1, 2020, Lebosky Ple acquired a 200KVA generator at the cost of N125million and the vendor gave a The installation and setting up period took three montns anu aur ovwmonm. ..., 00,000 was spent on cost directly relating to bringing the generator to its working condition. The generator was ready for use on April 1, 2020 and it has an estimated useful life of 15 years and a residual value of N1.500,000. It was also estimated that the generator would be dismantled at a cost of N1,250,000 after the end of the useful life. You are required to: i. Calculate the cost of the generator to be included in the non-current asset schedule of the statement of financial position as at December 31, 2017. ii. The depreciation charge to be included in statement of profit or loss for the year ended December 31. 2020 assuming the company uses straight line method. Question Three (Any Two) a) A motor van was bought for 2,000,000 on 1 January 2017 and sold for N880,000 on 31" December 2019. If depreciation was charged at 20% using the straight line method on yearly basis, prepare the Motor van disposal account. b) The carrying value of Zen's property at the end of the year amounted to N108 m. On this date the property was revalued and was deemed to have a fair value of N95m. The balance on the revaluation reserve relating to the original gain of the property was N10m. What is the double entry to record the revaluation? c) IQ Limited, purchased a Lexus coolant at a cost of N1,200,000 on 1H January 2018. The generator was expected to have a useful life of 4 years with no scrap value. The company depreciates equipment on the straight-line basis with depreciation being charged for every month of use. On 3111 December 2020 , before charging the depreciation for the year, it was decided that the expected useful life be increased by 2 more years in view of the fact that the generator was in Question Five Aluko Lid sells an inventory named WY12 at Kano. The product is bought at Lagos and transported to the company's warehouse at Kano. In the month of April 2020 , the first month of the current accounting period, the following transactions took place April 1": : inventory of 10 cartons (a) N1,500 each During April: a) Purchased 180 cartons @ a cost fNI,500 each b) Cost of transportation (including incidental expenses) N38,550 c) 3 cartons were found to have been damaged but the damage was considered to be within normal limit d) Sales were made as follows: 50cartons@N1,70089,1070cartonsN1,850129,20055carton@N2,000v10,000 Required: i. Ascertain the value of closing inventory at 30th April 2020 using FIFO ii. Prepare the Statement of profit or loss for the month of April 2020

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

Horngrens Cost Accounting A Managerial Emphasis

Authors: Srikant Datar, Madhav Rajan

16th Global Edition

1292211547, 9781292211541

More Books

Students also viewed these Accounting questions

Question

=+How can you personalize the language?

Answered: 1 week ago

Question

=+Can your message work in another locale?

Answered: 1 week ago

Question

=+Can you create an idea that spins out?

Answered: 1 week ago