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- a) ABC Lid acquired a new packing line from QE Ltd on hire purchase on January 1, 201 1. The cash price (list price) was GHS54,000. The hire purchase agreement is as follows: • Initial deposit payment of GH59,000 on January 1, 2011; Payment of two annual instalment of GHS24,000 on December 31 of 2011, 2012 and a final instalment of GHS20,39 1 on December 31, 2013. • Implicit rate of interest is 25% per annum. It is the policy of ABC to depreciate the PL on straight line basis over 10 years, with no salvage value. Required: Show the ledger entries for the above transactions in the books of ABC Ltd b) On 1 October 2018 XYZ Ltd acquired a machine under the following terms. Hours Manufacturer's base price Trade discount (applying to base price only) Early settlement discount taken (on the payable amount of the base cost only) Freight charges Electrical installation cost Staff training in use of machine Preproduction testing Purchase of a three-year maintenance contract Estimated residual…COLLEGE Question 4: The following details regarding Machines are provided: Machine Date of purchase Cost Date of sale Cash Proceeds $ 1,000,000 02/06/2020 450,000 XX Y 05/04/2017 01/01/2019 2,000,000 The policy of the company is to depreciate its PP&E at 10% on cost. Depreciation is charged in full in the year of purchase disposal. Required: For year ended 31st December 2020 prepare: Machinery account Accumulated depreciation account Machinery disposal a/c SPOL Extract SFP Extract Question 5: A machine was purchased on 2nd July 2016 for $1,200,000. It was traded in for new one whose price was $1,000,000 on 2nd June exchange. The policy of the company is to charge depreciation for its PP&E at 10% on cost per annum Depreciation is charged in depreciation is charged in the year of disposal.On May 1, 2014 Barton Corporation purchased for cash of $37.500 a patent with a useful ife of 10 years, Give the entries to record: a. The purchase of the patent. b. The amortization on December 31, 2014 (calculated to the nearest whole month). Enter the transaction letter as the description when entering the transactions in the journal. Dates must be entered in the format ddimmm (1e. January 15 would be 15/Jan). Ensure accuracy in your calculations and round only your final answer to the nearest whole dollar, Date General Journal Account/Explanation Page GJ2 F Debit Credit
- Maxine Company sells a tractor on January 1, 2024 for $45,000 cash. At the time of the sale, the book value of the tractor is $41,000. The original purchase price of the machine was $50,000. Which of the following would be part of the correct journal entry to record the sale of the tractor? DEBIT to Gain on Sale of Equipment of $4,000 CREDIT to Equipment of $41,000 CREDIT to Gain on Sale of Equipment of $4,000 DEBIT to Loss on Sale of Equipment of $5,000 None of the above1.Record the following transactions in a general journal Amount(KD) Date Description 1/1/2020 Being capital bought in by owner in the business amounting to KD 30000 1/1/2020 Purchase of a High pressure system for KD 5000 which has a useful life of 5 years 1/1/2020 Purchase of a vaccum cleaner for KD 210 which has a useful life of 7 years 1/1/2020 Purchase of a Oil seperation unit for KD 2000 which has a useful life of 4 years, which helps in seperating oil and water. 1/1/2020 Purchase of a water tank for KD 200 which has a useful life of 10 years 1/1/2020 Purchase of a generator for power backup for KD 350 which has a useful life of 10 years 1/1/2020 Purchase of a drainage unit for KD 400 which has a useful life of 4 years 1/1/2020 Purchase of a upholestery cleaner for KD 150 which has a useful life of 5 years 1/1/2020 Purchase of…eBook Show Me How Intangibles: Balance Sheet Presentation and Income Statement Effects Han Company has provided information on intangible assets as follows: A patent was purchased from Lou Company for $1,395,000 on January 1, 2018. Han estimated the remaining useful life of the patent to be 10 years. The patent was carried in Lou's accounting records at a net book value of $1,065,000 when Lou sold it to Han. During 2019, a franchise was purchased from Rink Company for $330,000. In addition, 4% of revenue from the franchise must be paid to Rink. Revenue from the franchise for 2019 was $2,300,000. Han estimates the useful life of the franchise to be 5 years and takes a full year's amortization in the year of purchase. Han incurred R&D costs in 2019 as follows: Materials and equipment $136,000 Personnel 175,000 Indirect costs 53,000 $364,000 Han estimates that these costs will be recouped by December 31, 2020. On January 1, 2019, Han estimates, based on new…
- Hybrid dealers bought computer equipment for R54000 on 1 July 2018.The equipment is deprecated at 20% to the diminishing balance method. prepare the depreciation and closing transfer entries in the general journal of hybrid dealers on 31 March 2019 and 31 March 2020Hybrid Dealers bought computer equipment for R54 000 on 1 July 2018. The equipment is depreciated at 20% according to the diminishing balance method. Required: Prepare the depreciation and closing transfer entries in the general journal of Hybrid Dealers on 31 March 2019 and 31 March 2020. Please see attached for answer formatO Bookmarks < O 9.0 eBook Window Help ACCT-2010-DEM01 a. What was the depreciation fo e first year? $ Cash Show Me How Feedback v2.cengagenow.com Journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. Sale of Equipment Equipment was acquired at the beginning of the year at a cost of $33,000. The equipment was depreciated using the double-declining-balance method based on an estimated useful life of ten years and an estimated residual value of $640. b. Assuming the equipment was sold at the end of year 2 for $8,130, determine the gain or loss on the sale of the equipment. Loss Check My Work 7 more Check My Work uses remaining. APR 4 . G C CengageNOWv2 | Online teaching and learning resourc... ? O All work saved. Check My Work Be sure to record the selling price of the fixed asset. If the company no longer has the fixed asset what account(s) would need to be eliminated? Was or a loss on the sale? tv Ⓒệa 20 Tue Apr 4 Email Instructor Save and…
- Hybrid Dealers bought computer equipment for R54 000 on 1 July 2018. The equipment is depreciated at 20% according to the diminishing balance method.Required:Prepare the depreciation and closing transfer entries in the general journal of Hybrid Dealers on 31 March 2019 and 31 March 2020.Accounting Prepare the journal entry to record the exchange of the delivery truck on December 1, 2018. 1) On December 1, 2018, ABC Co. exchanges an old delivery truck for a new truck. The old truck originally cost $40,000 on December 1, 2014 and has a current fair value of $4,750. The Accumulated Depreciation account related to the old delivery truck was $36,250 on the date of exchange. The new truck has a list price of $35,000. The dealer gave ABC Co. a $5,000 trade-in allowance. 2) For the below transactions, record the appropriate adjusting journal entry for amortization at year-end on December 31, 2020. If no entry is required, state so and explain why. a) McLaughlin Inc. purchased another company on July 1, 2020, and recorded Goodwill of $400,000. b) McLaughlin Inc. purchased a Patent for $18,000 on January 1, 2020. In addition, $9,000 was spent in legal costs on January 1, 2020, to successfully defend the Patent in court against competitors. The Patent has a legal life of 20…VICHIURGICS Current Attempt in Progress Bridgeport Ltd. shows a patent on its statement of financial position. At its year end of October 31, 2022, the caption read Patent (net) $73,500 and at its year end of October 31, 2023, the caption read Patent (net) $47,000. Bridgeport's recorded amortization on the patent in the amount of $5,100 for the 2023 fiscal year and the remaining change in the account resulted from recording a loss on impairment for the year ended October 31, 2023. There were no purchases or sales of patents during the year. Determine the necessary caption(s) and amount(s) that should appear on Bridgeport's statement of cash flows, using the indirect method. Indicate where the item(s) would appear on the statement (the operating, investing, or financing section(s)). (Show amounts that decrease cash flow with either a-sign e.g. -15,000 or in parenthesis e.g. (15,000).) Bridgeport Ltd. Statement of Cash Flow (Partial) For the Year Ended October 31, 2023 Adjustments to…
