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- Question 1 The following information was taken from the fixed assets register of Hogwarts Traders. The vehicles indicated below are the only vehicles owned by the sole trader. The company has a 31 December year end. Hogwarts Traders: Asset Register Hogwarts Traders: Vehicle 1 Date 1 May 2015 Date Current Accumulated Purchased: depreciation depreciation Make and Toyota Hilux 31 Dec 21 333.33 21 333.33 reg.: 2014 (FG765GP) 2015 Purchased Benji's Car Sales 31 Dec 29 866.67 51 200.00 from: (Credit) 2016 Cost Price: 320 000.00 31 Dec 26 880.00 78 080.00 2017 Rate of 10% according 31 Dec 24 192.00 102 272.00 Depreciation: to reducing 2018 balance method. Sold to: V. Limited. 31 Dec 2019 Type of Sale: Cash Date sold: 1 July 2019 Selling Price: 250 000.00COLLEGE 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
- 1.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…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 aboveO 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. Please see attached for answer formateBook 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 2020
- The following information pertains to the acquisition of an asset by Torres Company during the year; FURNITURE Invoice price P 30,000 Date bought February 1 Trade discount 10% Terms 20% down, balance 2/10, n/30 Freight paid P500 Allowance granted 3,000 Date allowance granted February 3 Partial payment made P6,000 Date of partial payment February 5 Date of full payment of account February 10 Required: 1. From the given information, journalize a. the acquisition b. the incurrence of expense C. the granting of allowance d. the partial payment e. the full payment of account 2. Determine the cost of the asset.TB MC Qu. 7-107 Kansas Enterprises purchased equipment for... Kansas Enterprises purchased equipment for $79,000 on January 1, 2021. The equipment is e of $7,950 at the end of ten years. Using the straight-line method, the book value at December 31, 2021, would be: Multiple Cholce $71,895. $71,050.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…