Fylder Construction Sdn Bhd bought a full hydraulic carrier-mounted crane. The cost was RM155,000. The company...

 

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Fylder Construction Sdn Bhd bought a full hydraulic carrier-mounted crane. The cost was RM155,000. The company expected to used the crane for 5 years and provides for salvage value at the end of five years to be RM15,000. As the Finance Manager for the company, you suggested that the company implements a straight line method depreciation. Your company director has no knowledge on depreciation, therefore you are preparing a report on the carrier-mounted crane depreciation to present to him. You needed the following information to be included in the report. REQUIRED: (a) Calculate the annual depreciation. (b) Prepare the depreciation schedule (c) Prepare the accumulated depreciation account for the first 3 years. The following balances are taken from the accounting book of Creative Media Sdn Bhd as at 1 December 2019 Particular Motor Vehicle Furnitures and Fitting Bank Account Receivable - Warna Lensa Account Payable - Art Design The following are transactions that incurred in December 2019 December 7512722 9 23 28 30 RM 50,000 45,000 35,000 9,600 14,500 (a) (b) (c) Creative Media bought goods on credit from Art Design amounting RM8,800 Haniff brought in his motor vehicle to be used for delivery valued at RM20,000 Cash sales of RM2,150 was recorded at end of day REQUIRED: Credit sales was made to Warna Lensa for RM600 Return inwards from Warna Lensa due to defects. Sales amount was RM320. Creative Media return RM2,500 to Art Design due to defects Creative Media delivered custom order RM6,000 specially designed paper bag to ZARA Enterprise for their grand opening events. ZARA Enterprise paid RM2,500 and balance are invoiced at 1/10 net 30 credit terms. Creative Media received RM4,000 from Warna Lensa being partial payment Creative Media pays the following: RM2,200 of rent, RM3,200 of staff wages and utilities RM520 Haniff withdraw RM1,500 from bank account for his personal use Prepare the Journal entries to record all transactions. Post all the entries to the ledger and close the account. Prepare Trial Balance as at 31 December 2019. Fylder Construction Sdn Bhd bought a full hydraulic carrier-mounted crane. The cost was RM155,000. The company expected to used the crane for 5 years and provides for salvage value at the end of five years to be RM15,000. As the Finance Manager for the company, you suggested that the company implements a straight line method depreciation. Your company director has no knowledge on depreciation, therefore you are preparing a report on the carrier-mounted crane depreciation to present to him. You needed the following information to be included in the report. REQUIRED: (a) Calculate the annual depreciation. (b) Prepare the depreciation schedule (c) Prepare the accumulated depreciation account for the first 3 years. The following balances are taken from the accounting book of Creative Media Sdn Bhd as at 1 December 2019 Particular Motor Vehicle Furnitures and Fitting Bank Account Receivable - Warna Lensa Account Payable - Art Design The following are transactions that incurred in December 2019 December 7512722 9 23 28 30 RM 50,000 45,000 35,000 9,600 14,500 (a) (b) (c) Creative Media bought goods on credit from Art Design amounting RM8,800 Haniff brought in his motor vehicle to be used for delivery valued at RM20,000 Cash sales of RM2,150 was recorded at end of day REQUIRED: Credit sales was made to Warna Lensa for RM600 Return inwards from Warna Lensa due to defects. Sales amount was RM320. Creative Media return RM2,500 to Art Design due to defects Creative Media delivered custom order RM6,000 specially designed paper bag to ZARA Enterprise for their grand opening events. ZARA Enterprise paid RM2,500 and balance are invoiced at 1/10 net 30 credit terms. Creative Media received RM4,000 from Warna Lensa being partial payment Creative Media pays the following: RM2,200 of rent, RM3,200 of staff wages and utilities RM520 Haniff withdraw RM1,500 from bank account for his personal use Prepare the Journal entries to record all transactions. Post all the entries to the ledger and close the account. Prepare Trial Balance as at 31 December 2019.

Answer rating: 100% (QA)

a Annual Depreciation The formula for straightline depreciation is Annual Depreciation Cost of Asset Salvage Value Useful Life RM155000 RM15000 5 RM140000 5 RM28000 per year b Depreciation Schedule As... View the full answer