should the airline recognise a liability (and expense) under the PROBLEMS 3. A new vehi pany's nonm Basic CONCEPTUAL FRAMEWORK Moderate After conducting an audit of the accounts of Parramatta Ltd. you discover that the followins system. 1. The company borrowed S6000 from a bank at an interest rate of 10% to construct a ne actions and events were recorded during the current year. Parrmatta Lid uses the histori 4. Ignition s of $180 recorded a new house. At the completion of construction,the loan was repaid and the following entry was m 600000 60 000 Bank Loan Cash at Bank 660 000 2. A patent with a cost of $160000 was being amortised over its useful life of 8 years. The ane 5. Buildis the cu tisation entry made at the end of the current year was: Retained Earnings 20 000 rent y 20000 a cost of 3. A speed-control device was installed on each of the company's 8 delivery trucks at a cou ot S300 each plus GST. The transaction was recorded as follows: Maintenance Expense GST Receivable 2 400 240 Requ For ea why Cash at Bank 2640 4. At the beginning of the current year, a new vehicle was purchased for $36000. The vehicle had an estimated useful life of 4 years. Depreciation expense for the year was recorded as follows in order to avoid reporting a loss: A le Depreciation Expense 2000 Accumulated Depreciation-Vehicle 2000 5. Inventory was acquired at $30 per unit throughout the current year until the last purchase was made in the last month of the year. At that time the company was able to negotiate a special deal and acquired 10000 units at $25 per unit. Ignore GST. The purchase was recorded as follows: Inventory 300 000 Cash at Bank Income 250000 50000