A company depreciates its plant at the rate of 25% per annum, straight-line method, for each month
Question:
A company depreciates its plant at the rate of 25% per annum, straight-line method, for each month of ownership. From the following details, draw up the plant at cost account and the accumulated depreciation account for each of the years 2017, 2018, 2019 and 2020.
You are also required to draw up the plant disposal account and relevant extracts from the balance sheet as at the end of each year.
Transcribed Image Text:
2017 2019 2020 Bought plant costing 2,600 on 1 January. Bought plant costing 2,100 on 1 October. Bought plant costing 2,800 on 1 September. Sold plant which had been bought for 2,600 on 1 January 2017 for the sum of 810 on 31 August 2020.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (1 review)
2017 Jan 1 Bank Oct 1 Bank 2018 Jan 1 Balance bd Plant ...View the full answer
Answered By
JAPHETH KOGEI
Hi there. I'm here to assist you to score the highest marks on your assignments and homework. My areas of specialisation are:
Auditing, Financial Accounting, Macroeconomics, Monetary-economics, Business-administration, Advanced-accounting, Corporate Finance, Professional-accounting-ethics, Corporate governance, Financial-risk-analysis, Financial-budgeting, Corporate-social-responsibility, Statistics, Business management, logic, Critical thinking,
So, I look forward to helping you solve your academic problem.
I enjoy teaching and tutoring university and high school students. During my free time, I also read books on motivation, leadership, comedy, emotional intelligence, critical thinking, nature, human nature, innovation, persuasion, performance, negotiations, goals, power, time management, wealth, debates, sales, and finance. Additionally, I am a panellist on an FM radio program on Sunday mornings where we discuss current affairs.
I travel three times a year either to the USA, Europe and around Africa.
As a university student in the USA, I enjoyed interacting with people from different cultures and ethnic groups. Together with friends, we travelled widely in the USA and in Europe (UK, France, Denmark, Germany, Turkey, etc).
So, I look forward to tutoring you. I believe that it will be exciting to meet them.
3.00+
2+ Reviews
10+ Question Solved
Related Book For
Frank Woods Business Accounting An Introduction To Financial Accounting
ISBN: 9781292365435
15th Edition
Authors: Alan Sangster, Lewis Gordon, Frank Wood
Question Posted:
Students also viewed these Business questions
-
How is Apple able to stay at the cutting edge of the market? What made the iPod more marketable than its competitors?
-
What equations should I use or how should i find the correctanswer for the incorrect boxes diplayed?Jake's Gems mines and produces diamonds, rubies, and other gems. The gems are produced by way of...
-
A company depreciates its plant at the rate of 25 per cent per annum, straight line method, for each month of ownership. From the following details draw up the plant account and the provision for...
-
Using the information for Sarot, Inc., in SE 4 and SE 5, compute the current ratio, quick ratio, receivable turnover, days sales uncollected, inventory turnover, days inventory on hand, payables...
-
Refer to the 10-K reports of Under Armour, Inc., and Columbia Sportswear that are available for download from the companion website at CengageBrain.com. Required: 1. Describe each company's revenue...
-
Target Corporation prepares its financial statements according to U.S. GAAP. Targets financial statements and disclosure notes for the year ended February 3, 2018, are available in Connect. This...
-
Two pumps are being considered for purchase: Determine the service life, \(n_{\mathrm{y}}\), at which the two pumps are competitive. The annual effective interest rate is \(10 \%\). A Initial cost...
-
Pitino acquired 90 percent of Breys outstanding shares on January 1, 2009, in exchange for $342,000 in cash. The subsidiarys stockholders equity accounts totaled $326,000 and the noncontrolling...
-
What are some strategies to make use of Opportunities to minimize the Weaknesses of the company Revlon? What are some strategies to minimize the potential dangers lying in sectors where Weaknesses...
-
Distance Limited owned three lorries at 1 April 2019: Depreciation is charged annually at 20 per cent of cost on all vehicles in use at the end of the year. During the year ended 31 March 2020, the...
-
A company maintains its non-current assets at cost. A separate accumulated depreciation account is used for each type of asset. Machinery is to be depreciated at the rate of 15% per annum, and...
-
Multiple Choice Questions 1. Because Elaine has a family history of significant medical problems, she buys health insurance, whereas her friend Jerry, who has a healthier family, goes without. This...
-
We use the dataset "MASchools" in the package "AER" like we did in R-Exercise 2. The dataset contains information on test performance, school characteristics and student demographic backgrounds for...
-
D D Question 3: In a small college town, the demand for delivery pizza is given by QD = 800-32P, where measures the number of pizzas demanded each week. Use negative signs where appropriate. Unless...
-
Beginning Direct Materials $ 6,000 Ending Direct Materials 9,000 Beginning Work-in-Process Inventory 12,000 Ending Work-in-Process Inventory 17,000 Beginning Finished Goods Inventory 3,000 Ending...
-
6. The four capacitors in the combination illustrated below each has a capacitance C. If all the capacitors are then filled with a dielectric having a dielectric constant of 2, what is the new total...
-
Lawson Consulting had the following accounts and amounts on December 31. Cash $ 8,000 Dividends $ 2,100 Accounts receivable 5,100 Services revenue 13,800 Equipment 7,100 Rent expense 2,600 Accounts...
-
Cordell Co. is planning to finance an expansion of its operations by borrowing $100,000. City Bank has agreed to loan Cordell the funds. Cordell has two repayment options: (1) To issue a note with...
-
The diameter of a sphere is 18 in. Find the largest volume of regular pyramid of altitude 15 in. that can be cut from the sphere if the pyramid is (a) square, (b) pentagonal, (c) hexagonal, and (d)...
-
From the following trial balance, construct the financial statements for Boothroyd Ltd for the year ended 31 December 2011. Additional information: 1 Depreciation is to be provided on non-current...
-
Ramshaw plc issues 2,000,000 25p ordinary shares at a premium of 5p per share. It also decides to revalue property originally valued at 700,000 to 1m. Show the journal entries required to record this...
-
Woodbridge plc issues the following shares: 100,000 1.50 ordinary shares at a 25p premium 50,000 2 preference shares at face value. Show the journal entries required to record this share issue.
-
Assume that Schmidt Machinery Company had the standard costs reflected in Exhibit 14.5. In a given month, the company used 3,475 pounds of aluminum to manufacture 925 units. The company paid $29.00...
-
How can one describe the relationship between Cassatt and Degas, given the ways they interacted with each other ?
-
Royal Oaks Realty's net revenue and net income for the following five-year period, using 2021 as the base year, follow: (Click the icon to view net revenue and net income for the five years.)...
Study smarter with the SolutionInn App