Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Raza Hospital purchased X-ray machine on 4 Jan, 2015 at a list price of Rs.850,000 with a trade discount of 20% the payment was made

Raza Hospital purchased X-ray machine on 4 Jan, 2015 at a list price of Rs.850,000 with a trade discount of 20% the payment was made within the discount time as per term, that was 2/10, n/30. Sale Tax of 16% was also paid on the net cash price the hospital also incurred the following expenses Transportation Charges Installation and Testing cost Packaging Charges License fees for the current year 3 Years life insurance Insurance in transit 1,200 1,828 1,000 1,200 3,600 1,170 During installation work of the machine, an adjacent machine was damaged and the repair cost paid Rs. 650. After four months of successful use, the machine was cleaned, Imbricated, and overhauled at a cost of Rs.1,200 it was estimated that the x-ray machine has scrap value of Rs.8,000 at the end of its estimated life of 8 years. The manufacture has also estimated that it will run 14,900 working hours efficiently. Required a) List the expenditures that would become part of the fixed assets account b) Calculate the total cost of the machine c) Show Partial Balance Sheet as on December 31,2015 if the machine had worked 2000 hours during the year. d) Show adjusting entries for depreciation on 31 December 2016 assuming that the machine has worked 2500 hours in the years

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

Accounting For Deferred Income Taxes

Authors: Bobby Carmichael

2nd Edition

1119724562, 9781119724568

More Books

Students also viewed these Accounting questions

Question

=+3. List the touchpoints where you'd reach your audience.

Answered: 1 week ago