QUESTION 2 Ameera's Statement of Financial Position extract as at 31 December 2020 was given as follows: Date of purchase Non-current Cost (RM) Depreciation rate 1.05.2020 asset Furniture 44,000 10% per annum on straight line method 30.8.2020 Motor vehicle 72,000 20% per annum on reducing balance On 3 January 2021, Ameera purchased a new furniture costing RM 20,000 for cash. You are required to prepare: (a) Furniture and motor vehicle accounts. (2 marks) (b) Depreciation and Accumulated Depreciation accounts of each asset for 2020 and 2021. (6 marks)

QUESTION 2 Ameera's Statement of Financial Position extract as at 31 December 2020 was given as follows: Date of purchase Non-current Cost (RM) Depreciation rate 1.05.2020 asset Furniture 44,000 10% per annum on straight line method 30.8.2020 Motor vehicle 72,000 20% per annum on reducing balance On 3 January 2021, Ameera purchased a new furniture costing RM 20,000 for cash. You are required to prepare: (a) Furniture and motor vehicle accounts. (2 marks) (b) Depreciation and Accumulated Depreciation accounts of each asset for 2020 and 2021. (6 marks)

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 3E: Depreciation Methods Nickle Company purchased three identical assets for 17,000 on January 2, 2019....

See similar textbooks

Similar questions

An extract of the Asset Register of Ace Pty Ltd (“Ace”) for the 2018 - 2019 Income year isshown as follows:Asset Cost OpeningAdjustableValueMethod EffectiveLifeDecline inValue forThis PeriodClosingAdjustableValuePrinter 1,200 1,200 DiminishingValue3 years 400 800Desks 3,000 2,400 Prime Cost 10 years 300 2,100Appliances 2,600 1,040 Prime Cost 5 years 520 520All depreciable assets are 100% for business use and Ace uses a low-value pool for all eligibleassets. The closing value of the low-value pool at 30 June 2019 was $8,000. Ace purchased a camera on 20 Jan 2020 for $840.Advise Ace of the Income Tax consequences arising out of the above information for the 2019 - 2020 Income year assuming Ace is not a small business entity.
Q4 Dhofar LLC acquired an asset on 1st January 2019 for OMR 500,000 and the rate of depreciation is 10%p.a. Under Straight line method. Replacement cost of the asset on 31st December 2019 was OMR 700,000 and on 31st December 2020 was OMR 1,000,000. You are required to calculate for 2020 assuming switch year is made in the current year, the value of additional depreciation. a. OMR 15,000 b. None of these are correct c. OMR 50,000 d. OMR 35,000
Q42 Dhofar LLC acquired an asset on 1st January 2019 for OMR 500,000 and the rate of depreciation is 10%p.a. Under Straight line method. Replacement cost of the asset on 31st December 2019 was OMR 700,000 and on 31st December 2020 was OMR 1,000,000. You are required to calculate for 2020 assuming switch year is made in the current year, the value of Backlog depreciation. a. OMR 50,000 b. None of these are correct c. OMR 85,000 d. OMR 15,000
Property 1This property was purchased at a cost of R4 500 000 on 1 January 2019. An upfront payment ofR450 000 was made on this date and the remaining R4 050 000 is payable on 31 December 2019.A discount rate of 10% is applicable. The present value factor for R1 at 10% per annum is 0.909.5% of the property is used by the company as its sales and administration office. This isconsidered to be an insignificant portion of the property. The remaining 95% is leased to thirdparties under operating leases. The property cannot be apportioned off and sold separately.Transfer duties of R328 000 plus other abnormal costs of labour amounting to R50 000 wereincurred in getting the property ready to be let out to third parties.During the year, rentals of R775 000 were earned and repairs and maintenance expenses ofR65 000 were paid.The fair value of the property at year end on 31 December 2019 was R5 400 000. Q.2.1 Determine the cost at initial recognition for Property 1. Q.2.2 If the company chooses…
Property 1This property was purchased at a cost of R4 500 000 on 1 January 2019. An upfront payment ofR450 000 was made on this date and the remaining R4 050 000 is payable on 31 December 2019.A discount rate of 10% is applicable. The present value factor for R1 at 10% per annum is 0.909.5% of the property is used by the company as its sales and administration office. This isconsidered to be an insignificant portion of the property. The remaining 95% is leased to thirdparties under operating leases. The property cannot be apportioned off and sold separately.Transfer duties of R328 000 plus other abnormal costs of labour amounting to R50 000 wereincurred in getting the property ready to be let out to third parties.During the year, rentals of R775 000 were earned and repairs and maintenance expenses ofR65 000 were paid.The fair value of the property at year end on 31 December 2019 was R5 400 000. Q.2.2 If the company chooses to use the fair value model for measurement after recognition…
help me Question 6The following trial balance was extracted from the ledger of Juliana at 31 December2020.JulianaTrial Balance as at 31 December 2020RM RMLand at cost 26,000Plant at cost 83,000Accumulated Depreciation at 1 January 2020- Plant 13,000Office Equipment 33,000Accumulated Depreciation at 1 January 2020Office Equipment 8,000Receivables 198,000Payables 52,000Sales 763,000Purchases 516,000Returns inwards 47,000Discount allowed 4,000Capital at 1st January 2020 230,000Drawings 14,000Provision for doubtful debts at 1 January 2020 23,000Salaries Expense 44,000Administration costs 38,000Bank 75,000Bad debts written off 77,000Inventory at 1 January 2020 84,0001,164,000 1,164,000Additional information: Closing inventory is RM74,000. Depreciation on plant is charged at 10% per annum on cost. Depreciationon office equipment is charged at 20% per annum using the reducingbalance method. Administration costs include insurance prepaid of RM3,000. Salary accrued amount to RM2,000. The…
ncial Reporting and Analysis Jul22 Y1 S2 Chad Partners: Balances on 30 June 2021. Vehicles R300 000 Accumulated depreciation R50 000. Adjustment Depreciation is calculated at 10% on cost. An old vehicle was disposed on 01 January 2022 for R20 000 cash. The disposed vehicle originally costed R25 000 and the Accumulated depreciation is R 3 000. Profit/loss for the disposed vehicle is: OA. Profit/loss R3 000 B. Profit/loss R750 OC. Profit/loss R500 O D. Profit /loss R1 250 Clear my choice Tyne here to search 0 sage
Vorst depreciates Asset A on the double-declining-balance method. How much depreciation expense should Vorst record in 2020 for Asset A? a. 32,000 b. 25,600 c. 14,400 d. 6,400
Depreciation Methods Nickle Company purchased three identical assets for 17,000 on January 2, 2019. Each asset has an expected residual value of 1,000. The depreciation expense for 2019 and 2020 is shown below for three assets: Required: 1. Next Level Which depreciation method is the company using for each asset? 2. Compute the depreciation expense for 2021 and 2022 for each asset.
Depreciation Methods Sorter Company purchased equipment for 200,000 on January 2, 2019. The equipment has an estimated service life of 8 years and an estimated residual value of 20,000. Required: Compute the depreciation expense for 2019 under each of the following methods: 1. straight-line 2. sum-of-the-years-digits 3. double-declining-balance 4. Next Level What effect does the depreciation of the equipment have on the analysis of rate of return?
Subject:- Account On 1 January 2019 the carrying value of equipment was R19 720 (cost price, R25 670 and accumulated depreciation, R5 950). On 1 January 2019 equipment costing R5 670 was purchased (not included in the R25 670). The depreciation policy is to provide for depreciation, on all equipment held at year-end, at 25% per annum on the diminishing-balance method. Prepare the PPE note..
9. These are the books of Riya Distributers as at 28 February 2021. Equipment R20 000, Accumulated Depreciation R16 000. Depreciation is calculated at 20% p. a. on a diminishing method. An old equipment was disposed for R1 500 cash on 1 December 2020. The equipment originally costed R3 000. The Accumulated depreciation is R 700. The depreciation for the disposed equipment is A.R460 B.R345 C.R225 D.R92 10. These are the books of Riya Distributers as at 28 February 2021. Equipment R20 000, Accumulated Depreciation R16 000. Depreciation is calculated at 20% p. a. on a diminishing method. An old equipment was disposed for R1 500 cash on 1 December 2020. The equipment originally costed R3 000. The Accumulated depreciation is R 700. The profitloss for the disposed equipment is A.Profitloss R300 B.Profit/loss R92 C.Profit/loss R455 D.Profit/loss R460