WILL YOU PLEASE HELP ME WITH QUESTION 1 SOLUTION PLEASE

Major Assignment ACT501 -Accounting Principles Semester 2, 2017 Maximum Marks: 45 Instructions: If you create your worksheets in excel, please copy and paste them into MSWord before converting your document to PDF. Points are given for the quality of your calculation formats even if your final calculations are not correct. Once you have completed the assignment, it needs to be lodged through the Assessments section of Learnline. Your assessments must be lodged using PDF. Required: 1) Make sure your entire assignment can be readily printed on A-4 paper in portrait (preferred) or landscape format with appropriate page breaks 2) Make sure your name and student number are on every page of your submission. Ethics: This is not a group assignment; it is an individual assessment. Your solutions will likely be different from other students. If portions of your assignment are copied or very close to copying, all parties will be penalised for copying. Copying would be considered plagiarism and CDU has strict policies. It is up to you to keep your assessment confidential. ACT501\tSemester\t2,\t2017 Page\t1 Q. 1 (Max. Marks: 30) Barbari Ltd acquires a bus for a list price of $330,000 (GST inclusive) on 1.1.2005 by paying $260,000 and trading in an older bus which is on the books at a historical cost of $250,000 & an accumulated depreciation of $190,000. The new bus is expected to have a useful life of six years, after which it will be donated to Red Cross. On January 1 2007, the bus is revalued to $250,000 and its useful life is reassessed: it is expected, at that date, to have a remaining useful life of five years. On 1 July 2008, the bus is unexpectedly sold for $105,000 Required: Provide journal entries in accordance with AASB 116 to record a. b. c. Purchase of new bus on 1 January 2005 the revaluation on 1 January 2007 & the subsequent sale on 1 July 2008. Marks :10 Marks : 8 Marks: 12 Note: Barbari Ltd used accelerated depreciation method. The accelerated depreciation rate is 1.2 times the straight line rate. Barbari Ltd is registered for GST. ACT501\tSemester\t2,\t2017 Page\t2 Q.2 (Max Marks: 15) Consider the following March transactions for Indoor Dcor & Furnishing Store: March 3 March 6 March 14 March 18 March 21 March 24 March 28 March 31 Completed interior decoration job & received $2,900 from a client Purchased 120 sofas on credit for $28,800, plus freight in of $1,800 Sold 65 sofas to Ancora Hotels Ltd for $425 each on credit 1/10, net 30. Offered consultancy services to a client for interior decoration for a fee of $1,700 on credit. Purchased 50 table lamps for $1,250 total Ancora Hotels settled their account in full. Sold 30 table lamps for cash, $875 Posted depreciation of $150 on plant & equipment. The physical count of inventory recorded 54 sofas & 20 table lamps. Provided for bad debt expenses for the month of March. Required: Record the above transactions for Indoor Dcor & Furnishing Store. (Ignore GST) Note: Indoor Dcor & Furnishing Store follows perpetual inventory system & provides for bad debt expenses at 2% of credit sales. ACT501\tSemester\t2,\t2017 Page\t3