During 2016-2017, Winter Ltd. purchased three types of machines. Because of frequent employee turnover in the...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
During 2016-2017, Winter Ltd. purchased three types of machines. Because of frequent employee turnover in the accounting department, a different accountant was in charge of selecting the depreciation method for each machine, and various methods have been used. Information concerning the machines is summarised in the table below. Machine Date Initial Initial site Initial delivery Residual Useful Depreciation type acquired cost preparation and assembly value life Method costs costs Diminishing- 1 30/09/2016 $36,300 $1,200 $900 $9,000 8 balance Sum-of- 2 1/02/2017 $25,000 $1,000 $6,000 years'-digits 15/11/2017 $52,500 $700 $800 $10,500 10 Straight-line The end of financial year is at 30 June. The following transactions has taken place since the start of 2018; 2018 Feb. 24 Purchased land and a building worth $145,000, with the intention of tearing down the building and constructing a new office complex. An interest-free loan for $120,000 was taken from another company and the rest was paid in cash, plus an agent's commission of $8,800 and title search fees of $2,750. May 14 Paid Dan's Demolition Services $9,900 to demolish the building acquired on 24 September and received $750, from sale of materials salvaged from demolishing the old building. estimated to be $1,200. The carrying amount of the parts replaced in the machine was considered to be equal to $12,000. Apr. 20 A parking area was paved, on the land purchased at a cost of $30,800. The parking area has a useful life of 8 years with $9,000 residual value. The depreciation method is diminishing balance method. June 30 End of financial year depreciation expenses recorded. Machine number 4 has produced 12,450 units. July 28 Due to high demand for the newly built office complex, management has decided to extend the office complex, by adding four new offices. The extension is to finish by early September 2020, at a cost of $25,600. As the extension will be fully financed through the Commonwealth Bank of Australia, the full cost of the extension is borrowed on this date from the bank and kept in an account called "cash trust", to be used for the project. The extension will increase the useful life of the building by 4 years. Aug. 11 Due to technological advances the company sold machine 2 for $10,000. Sep. 8 The extension work on the office complex was completed. Interest paid on the loan for extension was $2,800. Required Prepare the necessary general journal entries for all the above transactions, rounding to the nearest whole number for the amounts to be recorded. Depreciation calculations must be based on the dates provided (no rounding to the nearest month). Narrations are not required. Instructions: You are required at least, to have a sheet in excel for General journal entries Workings and calculations (including any relevant T accounts and depreciation rate calculation). Depreciation schedules for each depreciable asset (this could be on a separate sheet or part of the above sheet). During 2016-2017, Winter Ltd. purchased three types of machines. Because of frequent employee turnover in the accounting department, a different accountant was in charge of selecting the depreciation method for each machine, and various methods have been used. Information concerning the machines is summarised in the table below. Machine Date Initial Initial site Initial delivery Residual Useful Depreciation type acquired cost preparation and assembly value life Method costs costs Diminishing- 1 30/09/2016 $36,300 $1,200 $900 $9,000 8 balance Sum-of- 2 1/02/2017 $25,000 $1,000 $6,000 years'-digits 15/11/2017 $52,500 $700 $800 $10,500 10 Straight-line The end of financial year is at 30 June. The following transactions has taken place since the start of 2018; 2018 Feb. 24 Purchased land and a building worth $145,000, with the intention of tearing down the building and constructing a new office complex. An interest-free loan for $120,000 was taken from another company and the rest was paid in cash, plus an agent's commission of $8,800 and title search fees of $2,750. May 14 Paid Dan's Demolition Services $9,900 to demolish the building acquired on 24 September and received $750, from sale of materials salvaged from demolishing the old building. estimated to be $1,200. The carrying amount of the parts replaced in the machine was considered to be equal to $12,000. Apr. 20 A parking area was paved, on the land purchased at a cost of $30,800. The parking area has a useful life of 8 years with $9,000 residual value. The depreciation method is diminishing balance method. June 30 End of financial year depreciation expenses recorded. Machine number 4 has produced 12,450 units. July 28 Due to high demand for the newly built office complex, management has decided to extend the office complex, by adding four new offices. The extension is to finish by early September 2020, at a cost of $25,600. As the extension will be fully financed through the Commonwealth Bank of Australia, the full cost of the extension is borrowed on this date from the bank and kept in an account called "cash trust", to be used for the project. The extension will increase the useful life of the building by 4 years. Aug. 11 Due to technological advances the company sold machine 2 for $10,000. Sep. 8 The extension work on the office complex was completed. Interest paid on the loan for extension was $2,800. Required Prepare the necessary general journal entries for all the above transactions, rounding to the nearest whole number for the amounts to be recorded. Depreciation calculations must be based on the dates provided (no rounding to the nearest month). Narrations are not required. Instructions: You are required at least, to have a sheet in excel for General journal entries Workings and calculations (including any relevant T accounts and depreciation rate calculation). Depreciation schedules for each depreciable asset (this could be on a separate sheet or part of the above sheet).
Expert Answer:
Answer rating: 100% (QA)
SOLUTION JOURNAL ENTRIES DATE PARTICULARS AMOUNT AMOUNT 30916 1ST MACHINE ACDR363001200900 38400 TO CASH 38400 1217 2ND MACHINE ACDR 250001000 26000 T... View the full answer
Related Book For
Financial Accounting Tools for business decision making
ISBN: 978-0470534779
6th Edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
Posted Date:
Students also viewed these accounting questions
-
Use the following information for the Exercises below. [The following information applies to the questions displayed below.] Laker Company reported the following January purchases and sales data for...
-
Due to rapid employee turnover in the accounting department, the following transactions involving intangible assets were improperly recorded by Neitzke Corporation in 2012. 1. Neitzke developed a new...
-
In recent years, Avery Transporation purchased three used buses. Because of frequent turnover in the accounting department, a different accountant selected the depreciation method for each bus, and...
-
Consider a single-output, non-preemptive queueing system. It has three queues connected to the single output, and packets in the queues are handled based on a strict-priority order. The three queues...
-
Describe how to prepare 100 mL of 0.200 M acetate buffer, pH 5.00, starting with pure liquid acetic acid and solutions containing ~3 M HCl and ~3 M NaOH.
-
At December 31, 2017, Reddy Inc. has three long-term debt issues out- standing. The first is a $2.2-million note payable that matures on June 30, 2020. The second is a $4-million bond issue that...
-
You are a salesperson working for American Airlines calling on the vice president of a large manufacturing company. Many of the companys people travel all over the world, and you would like them to...
-
Compute the overhead rate per service request for the Maintenance Department if estimated overhead costs are $18,290 and the number of estimated service request is 3,100.
-
What approaches do adaptive leaders employ to promote organizational agility and responsiveness, fostering a culture of experimentation and iterative improvement ?
-
A survey of 100 firms found the following evidence regarding profitability and market share: Is there evidence that market share and profitability are associated? Profitability Market share <15%...
-
Consider the copper bar shown below. 0.03 m 2 m 0.01 m If the temperature at one end (far left) is at 130C and the other end is at 20C, what is the rate of heat transfer (in W) down the bar? Note...
-
Two corporations merge. Only one survives, Corporation B.A creditor of the non-surviving corporation, Corporation A, sues Corporation B for Corporation A's debt.Does Corporation B legally have to...
-
Executive Leadership at All About Analytics realized that their talent acquisition initiatives to hire new employees from diverse cultural backgrounds are experiencing great success. The team members...
-
The software company you started has developed and grown much faster than anticipated! With the addition of three new branches, and the need to hire an additional 45 individuals for sales, your legal...
-
Research to determine how the value of Malaysian Ringgit has compared to the Canadian dollar over the last year. Provide a detailed discussion and relevant explanation with rationale to demonstrate...
-
The Symphony of Southeast Texas has resolved many internal problems that previously kept the orchestra from reaching its full potential. The organization has had success in increasing concert...
-
What are the major sections of the Annual Report?Why are those sections important? What of additional information in the Annual Report do you think would be most useful to investors if they are...
-
1. True or False. Pitfalls to consider in a statistical test include nonrandom samples, small sample size, and lack of causal links. 2. Because 25 percent of the students in my morning statistics...
-
Selected accounts of Sandin Company are shown here. InstructionsAfter analyzing the accounts, journalize (a) The July transactions and (b) The adjusting entries that were made on July31. Supplies...
-
The cash records of Arora Company show the following. For July: 1. The June 30 bank reconciliation indicated that deposits in transit total $580. During July, the general ledger account Cash shows...
-
The situations presented here are independent of each other. Instructions For each situation, prepare the appropriate journal entry for the redemption of the bonds. (a) Martha Corporation retired...
-
Action Quest Games adjusts its accounts annually. The following information is available for the year ended December 31, 2025. 1. Purchased a 1-year insurance policy on June 1 for $1,800 cash. 2....
-
Why is carbon such a special atom?
-
With each pass of a comet about the Sun, the comets mass (a) remains virtually unchanged. (b) actually increases. (c) is appreciably reduced.
Study smarter with the SolutionInn App