Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The accountant for Hobart Future Group Ltd prepared an aged analysis of accounts receivable balances at 3 0 June 2 0 2 3 . The
The accountant for Hobart Future Group Ltd prepared an aged analysis of accounts receivable balances at June The percentages of each age group are based on historical analysis and are presented in the table below. Ignore GST
It is company policy to use the allowance method to account for bad debts.
Age Estimated uncollectable Balance
Current $
days overdue $
days overdue $
days to months overdue $
Over months overdue $
a Calculate the estimated amount for the allowance for doubtful debts as at June
b Tasmanian Printers and Bookbinders Pty Ltd commenced business on July On July it spent $ on industrial printing and binding machinery, payable in two equal instalments on August and November They incurred $ in transport costs to deliver the machinery to the business premises and a further $ in electrical wiring and installation before the machinery could be used for production. These expenses were paid in cash. The supplier informed management the machinery has a productive capacity of hours. It is estimated the residual value would be $ in scrap metal at the end of the machinerys useful life.
On August the business purchased a secondhand truck for $ for deliveries. Stamp duty amounted to $ Four new tyres were fitted at a cost of $ to meet roadworthy conditions. The truck was expected to have a useful life of years and a residual value of $
The company has adopted the units of production method of depreciation for the printing and binding machinery and the diminishing balance method for the truck. The end of its reporting period is June. Ignore GST
Required
I. Calculate the depreciation expense for the financial years and for printing and binding machinery using:
units of production assuming the production totalled hours in financial year and hours in financial year
marks
II Calculate the depreciation expense for the financial years and for truck using:
diminishing or reducing balance assuming diminishing balance rate to be
c The personal training business owned by Joe Cheng made the following cash transactions during the reporting period.
purchased equipment, $
cash received for services, $
paid wages, $
paid rent, $
cash received for services, $
Required
Prepare a statement of cash flows using the direct method for the business for the period.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started