Blyth Traders are a well-established wholesale business operating in the north of England and south Scotland. Their trial balance for year ended 31" December 2021 is presented below: Dr (E] Cr [£] Non-current assets (cost): Plant and machinery 150,000 Vehicles 100,000 Premises 600,000 Accumulated depreciation (1-1-21): Plant and equipment 90,000 Vehicles 50,000 Premises 96,000 Sales 829,000 Sales returns 2,000 Purchases 335,000 Carriage in Wages and salaries 15,000 114,000 Discounts allowed 4,500 Electricity costs 37,500 2,500 Vehicle maintenance 8.000
Q: Trotman Company had three intangible assets at the end of 2019 (end of the accounting year):…
A: Given: Purchased computer software and website development technology - $71,000. A patent…
Q: Tibra Inc.'s trial balance TBAcontained the following accounts at December 31, 2021, the end of…
A: The income statement is prepared by the business organization so as to know how much amount of gross…
Q: BTS Corporation provided the following balances in its trial balance for the year ended December 31,…
A: Balance sheet The purpose preparing the balance sheet to know the actual position which are incurred…
Q: HELL'S KITCHEN Company has the following accounts information for the year ended December 31, 2021.…
A: Total Assets: Total assets are a depiction of the value of everything a person has after taking into…
Q: Karane Enterprises, a calendar-year manufacturer based in College Station, Texas, began business in…
A: (a)
Q: Use the following information for the next two (2) questions: On February 1, 2019, Fowl Company…
A:
Q: 4. Orange Enterprises had the following transactions: On December 28, 2021, paid property taxes for…
A: The expense recognition is based on the concept of accrual accounting. Property taxes paid for the…
Q: De Guzman Furniture has an Operating Income of P4,012,000.00 in the year ended December 31, 2019.…
A: Hi student Since there are multiple quuestions, we will answer only first question.
Q: Merit is a Company that operates in the Retail business and has a 30 June 2021 year end. The Books…
A: "Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: The following balances were extracted from the books of Billion Precision for the year ended 31…
A: Typically, following are the main components of the work sheet 10 Colounm Worksheet: Trail…
Q: 358,500 Cash and cash equivalents 817,300 Notes payable (due April 1,…
A: Balance sheet The purpose preparing the balance sheet to know the actual position which are…
Q: Robertson Inc. prepares its financial statements according to International Financial Reporting…
A: As per IAS 16, Property, plant, and equipment, On revaluation, the balance of the accumulated…
Q: Bailey Company was formed in January 2017 and is preparing its financial statements under GAAP for…
A: Working Notes: Amortization of Patents Patents: $150,00 Number of years: 15 years Amortization…
Q: HELL'S KITCHEN Company has the following accounts information for the year ended December 31, 2021.…
A: Total assets includes both Current assets and Non current assets. Current assets: Current assets are…
Q: Blue Company shows the following entries in its Equipment account for 2021. All amounts are based on…
A: The depreciation expense is charged on the basis of usage time of the fixed assets.
Q: Wildhorse Limited sells equipment on September 30, 2021, for $43,210 cash. The equipment originally…
A: Depreciation as per straight line method = (Cost - Residual value) /useful life = (150700-4400) /5 =…
Q: BTS Corporation provided the following balances in its trial balance for the year ended December 31,…
A: The income statement of the business shows all incomes and expenses of the business at the end it…
Q: Paris Company's trial balance of profit or loss accounts for the year ended December 31, 2021…
A: Solution: Company profit before taxes = Total of sales and other revenues - Total of Expenses
Q: The following items are related to Berjaya Bhd's financial statements for the year ended 30 June…
A: Change in accounting estimates or an error states the results from new information or new…
Q: The following trial balance relates to Glory plc at 31 December 2020:” “£000” “£000”…
A: GLORY PLC STATEMENT OF PROFIT OR LOSS FOR THE YEAR ENDED ON 31.12.2020 PARTICULARS…
Q: Sumit Ltd reported the following assets in its statement of financial position at 30 June 2021:…
A: Impairment Loss- The impairment loss is calculated when the asset's carrying value exceeds its…
Q: The trial balance below was extracted from the books of CiciCaca Enterprise as at 31 Mac 2020:…
A: Income statement is prepared from the figure of adjusted trial balance and the figure in trial…
Q: Paris Company's trial balance of profit or loss accounts for the year ended December 31, 2021…
A: Cost of goods manufactured = Cost of goods sold + ending finished goods inventory - beginning…
Q: mpson Ltd was established on 1 July 2019 with share capital totalling $132,000. One year later at…
A: Journal: Journal is considered as a book of original entry because all the transactions that have…
Q: Tibra Inc.'s trial balance TBAcontained the following accounts at December 31, 2021, the end of…
A: 1. Income Statement 2. Balance Sheet The first statement shows the income earned and loss incurred…
Q: The following transactions were completed by CCL Company in 2022, whose fiscal year ends December…
A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: De Luna Bhd is a major retailer of branded cars in Peninsular Malaysia. The comparative Statement of…
A: The statement of cash flows is an important financial document that illustrates all of the…
Q: Wildhorse Limited sells equipment on September 30, 2021, for $43,210 cash. The equipment originally…
A: Depreciation refers to a decline in the value of a fixed asset over its useful life. Straight line…
Q: Permai Bhd is one of the main manufacturers and suppliers of industrial chemical products and…
A: Calculation of Depreciation and Capital allowances: Amount in RM Year Depreciation…
Q: The trial balance below was extracted from the books of CiciCaca Enterprise as at 31 Mac 2020:…
A: Statement of Financial Position or Balance Sheet refers to a financial statement representing an…
Q: 4. Orange Enterprises had the following transactions: On December 28, 2021, paid property taxes for…
A: As per accrual basis of accounting, Income and expenditures are to be recognized as and when they…
Q: Perry Corp. reports operating expenses in two categories: (1) selling and (2) general and…
A: Selling expenses is the expense that is associated with the marketing and distributing of the…
Q: ABC Ltd started business on January I 2014, and its financial year end on December 31 each year. It…
A: Depreciation means decline in the estimation of benefit inside its valuable life because of mileage…
Q: Trotman Company had three intangible assets at the end of 2019 (end of the accounting year):…
A: 1. Amortization of Intangible assets have been correctly stated based On straight line method. 2.…
Q: Blyth Traders are a well-established wholesale business operating in the north of England and south…
A: Profit and Loss Account The purpose preparing the income statement to know the actual net income of…
Q: Permai Bhd is one of the main manufacturers and suppliers of industrial chemical products and…
A: Amount in RM Year Depreciation Capital Allowances 2015 356000*10%=35600 356000*20%=71200…
Q: Selling; and (2) General and Administrative
A: Total selling Expenses for 2021 is Correct answer :- B P480,000
Q: The Outdoors Corporation, which sells camping and hiking equipment, had the following adjusted…
A: Income Statement for M/s Outdoors Corporation for the year ended December 31, 2021 Particulars…
Q: The following information was extracted from the records of Lodh Ltd for the year ended 30 June…
A: A deferred tax liability is a balance-sheet item that indicates taxes that are owed but are not due…
Q: REQUIRED: a) Determine the tax base of asset and liabilities for Permai Bhd and calculate the…
A:
Q: Trotman Company had three intangible assets at the end of 2019 (end of the accounting year):…
A: The question is related to Intangible Assets. The amortization in case of Intangible Assets is…
Q: HELL'S KITCHEN Company has the following accounts information for the year ended December 31, 2021.…
A: Total assets includes current and non current assets. Current assets: Current assets are all those…
Q: On January 1, 2021 Asset of ABC Company was P2,500,000 and its liabilities was P800,000. By December…
A: Solution Concept The increase / decrease in assets and liabilities can not give the implication…
Q: Presented below are selected transactions for Rangers Ltd during the year 2021. 1 Jan. Sold…
A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…
Q: Trinidad Manufacturing Limited extracted the following balances from the books of account at the end…
A: The Cost of Goods Manufactured Schedule shows the total production costs that have occurred during a…
Q: Sabana S.A acquired specialized equipment on June 28, 2020. Its cost of 17000000, its residual value…
A: Yearly depreciation expense = Cost of asset - Residual value Estimated useful life Yearly…
Q: A. Amina Importers Sdn. Bhd. is involved with importation of canned products and genera trading. The…
A:
Q: A company whose accounting year is the financial year, purchased on 1 April 2018 machinery costing…
A: Depreciation is the decrement in the value of asset due to usage, wear and tear obsolence or passage…
Q: Additional information: • A new building was purchased for cash on the 1st September 2020 for R1 000…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: The trial balance below was extracted from the books of CiciCaca Enterprise as at 31 Mac 2020:…
A: Financial statement is prepared from the trial balance which include :- Profit and loss and…
Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
Step by step
Solved in 3 steps with 1 images
- The following trial balance was extracted from the ledger of Juliana at 31 December 2020. Juliana Trial Balance as at 31 December 2020 RM RMLand at cost 26,000Plant at cost 83,000 Accumulated 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…The following trial balance was extracted from the ledger of Juliana at 31 December 2020.JulianaTrial Balance as at 31 December 2020RMRMLand at cost26,000Plant at cost83,000Accumulated Depreciation at 1 January 2020- Plant13,000Office Equipment33,000Accumulated Depreciation at 1 January 2020Office Equipment8,000Receivables198,000Payables52,000Sales763,000Purchases516,000Returns inwards47,000Discount allowed4,000Capital at 1st January 2020230,000Drawings14,000Provision for doubtful debts at 1 January 202023,000Salaries Expense44,000Administration costs38,000Bank75,000Bad debts written off77,000Inventory at 1 January 202084,0001,164,0001,164,000Additional information: Closing inventory is RM74,000. Depreciation on plant is charged at 10% per annum on cost. Depreciation on office equipment is charged at 20% per annum using the reducing balance method. Administration costs include insurance prepaid of RM3,000. Salary accrued amount to RM2,000. The allowance for receivables is to…The following trial balance relates to Golden Ltd at 30th September 2018GHS'000GHS'000Sales (a)760,000Material purchases (b) 128,000Production labour (b) 248,000Factory overheads (b) 160,000Distribution costs 28,400Administrative expenses (c) 92,800Finance costs 700Investment income1,600Leased property - at cost (b) 100,000Plant and equipment - at cost (b) 89,000Accumulated amortisation/depreciation at 1/10/2017- leased property20,000- plant and equipment29,000Equity investments (e) 36,000Inventory at 1/10/17 93,400Trade receivables 67,100Trade payables55,600Bank4,600Stated capital (GHS0.2)100,000Income surplus (1/10/2017)67,200Deferred tax (f)5,4001,043,4001,043,400The following notes are relevant:(a) Sales include goods sold and dispatched in September 2018 on a 30-day right of return basis. Their sellingprice was GHS4.8m and they were sold at a gross profit margin of 25%. In the past, Golden Ltd’scustomers have always met their obligations under this type of agreement.(b)…
- 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 R460ENGEN acquired the following assets. Financial Year: 31 December 2019.1. Motor vehicle $ 100 000 acquired on 30 June 2015 Custom clearance cost N$ 8 500Transport cost from Walvis Bay to Windhoek $ 10 000Vehicle registration cost N$ 1 500Depreciation: 4 years’ straight lineScrap value $ 2 000 2. Furniture and FittingsN$ 150 000 acquired on 01 January 2015Depreciation: 20% diminishing balanceN$ 49 152 residual value a)Calculate depreciation each year for both assets? Show each year depreciation expense and accumulated depreciation.
- Required information [The following information applies to the questions displayed below.] The plant assets section of the comparative balance sheets of Anders Company is reported below. ANDERS COMPANY Comparative Balance Sheets 2019 2018 Plant assets Equipment Accumulated depreciation-Equipment $ 180,000 (100,e00) $ 80,000 $ 380,000 (100,000) $ 280,000 $ 270,000 (210,000) $ 60,000 $ 400,000 (285,000) $ 115,000 Equipment, net Buildings Accumulated depreciation-Buildings Buildings, net During 2019, a building with a book lue of $70,000 and an original cost of $300,000 was sold at a gain of $60,000. 1. How much cash did Anders receive from the sale of the building? 2 How much denreciation evnense was recorded on buildinas during 20192 ... ChatRefer to the information for Cox Inc. above. What amount would Cox record as depreciation expense for 2019 if the units-of-production method were used ( Note: Round your answer to the nearest dollar)? a. $179,400 b. $184,000 c. $218,400 d. $224,000Ballet Pte Ltd acquired the following items of plant and Machinery, all from GST registered traders except paper shredder, which was purchased from a non registered trader for the quarter ended 31 March 2020. Description Cost (inclusive of 7% GST) Canon Printer $3,959 Paper Shredder $2,880 Boutique table $984.40 Machinery $11,877 Ballet Pte Ltd will claim its capital allowance to the maximum. Assuming the financial year ends on 30 June every year, determine the maximum capital allowance which can be claimed for the year of Assessment 2021 (to the nearest dollar). Assume paper shredder claimed by S19A, and Canon printer is not claimed under S19A. a. $6,567 b. $6,200 c. $4,967 d. $8,667
- Study the information given below and answer the following questions:5.1 Calculate the profit or loss on the disposal of the equipment. 5.2 Prepare the following note to the financial statements as at 28 February 2020:* Property, plant and equipment INFORMATIONThe following balances appeared in the general ledger of Umzinto Traders on 01 March 2019, the beginning of the financial year:RVehicles 300 000Accumulated depreciation on vehicles 140 000Equipment 130 000Accumulated depreciation on equipment 75 000Additional information1) A new vehicle, cost price R160 000, was purchased on credit on 01 December 2019.2) Equipment with a cost price of R10 000, was sold for cash on 31 August 2019 for R2 000. The accumulated depreciation on the equipment sold amounted to R7 000 on 01 March 2019.3) Depreciation is calculated on equipment at 10% per annum on cost.4) Depreciation is calculated on vehicles at 20% per annum on the diminishing balance.Required information (The following information applies to the questions displayed below.) The plant assets section of the comparative balance sheets of Anders Company is reported below. ANDERS COMPANY Comparative Year-End Balance Sheets 2021 2020 Plant assets Equipment Accumulated depreciation-Equipment Equipment, net Buildings Accumulated depreciation-Buildings $ 180,000 (100,000) $ 80,000 $ 380, 000 (100,000) $ 280,000 $ 270,000 (210,000) $ 60, 000 $ 400,000 (285,000) $ 115,000 Buildings, net During 2021, equipment with a book value of $40,000 and an original cost of $210,000 was sold at a loss of $3,000. 1. How much cash did Anders receive from the sale of equipment? 2. How much depreciation expense was recorded on equipment during 2021? 3. What was the cost of new equipment purchased by Anders during 2021? 1. Cash received from the sale of equipment 2. Depreciation expense 3. Purchase of equipmentThe plant asset and accumulated depreciation accounts of Pell Corporation had the following balances at December 31, 2020: Accumulated Depreciation $ Land Land improvements Building Equipment Automobiles Plant Asset $ 380,000 195,000 1,650,000 1,164,000 165,000 Transactions during 2021 were as follows: a. On January 2, 2021, equipment were purchased at a total invoice cost of $275,000, which included a $5,800 charge for freight. Installation costs of $30,000 were incurred. b. On March 31, 2021, a small storage building was donated to the company. The person donating the building originally purchased it three years ago for $22,000. The fair value of the building on the day of the donation was $16.000. c. On May 1, 2021, expenditures of $53,000 were made to repave parking lots at Pell's plant location. The work was necessitated by damage caused by severe winter weather. The repair doesn't provide future benefits beyond those originally anticipated. d. On November 1, 2021, Pell acquired a…