The following is an extract of balances for a company for the year: Heat and light...
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The following is an extract of balances for a company for the year: Heat and light paid during the year Rent paid during the year Non-current assets (at cost) Sales for the year £ 22,000 27,000 80,000 850,000 The gross profit margin for the year has been calculated as 10%. Accumulated depreciation on the non-current assets at the start of the year was £20,000. Depreciation is to be calculated at 25% on the reducing balance method. At the end of the year adjustments also need to be made for heat and light accrued of £4,000, and rent prepaid of £2,500. Calculate the depreciation expense for the year; the net book value of the non-current assets at the end of the year; and the net profit for the year. The following is an extract of balances for a company for the year: Heat and light paid during the year Rent paid during the year Non-current assets (at cost) Sales for the year £ 22,000 27,000 80,000 850,000 The gross profit margin for the year has been calculated as 10%. Accumulated depreciation on the non-current assets at the start of the year was £20,000. Depreciation is to be calculated at 25% on the reducing balance method. At the end of the year adjustments also need to be made for heat and light accrued of £4,000, and rent prepaid of £2,500. Calculate the depreciation expense for the year; the net book value of the non-current assets at the end of the year; and the net profit for the year.
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Solution ACalculation of depreciation expense for the year Depreciation expe... View the full answer
Related Book For
Interpreting and Analyzing Financial Statements
ISBN: 978-0132746243
6th edition
Authors: Karen P. Schoenebeck, Mark P. Holtzman
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