Juicy Wiggle Limited, a company involved in the manufacture of energy juices, purchased new manufacturing machine...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Juicy Wiggle Limited, a company involved in the manufacture of energy juices, purchased new manufacturing machine on the 1 March 2017 for an amount of R275 000. The machine had a useful life of 5 years on this date and a RO residual value. The machine had a carrying value of R165 000 on the 28th February 2019. On the 1 March 2019, the residual value of the equipment was now estimated to be R20 000. Required: 1. Prepare the journal entries in respect of depreciation for the year ended 29th February 2020 using the Re-allocation Method assuming no journals had been passed yet. (10) 2. Prepare the Profit before tax note AND the note in terms of IAS 8, the statement on Accounting policies, estimate and errors for the year ended 29th February 2020 (10) All workings must be shown. Include comparatives where applicable. Ignore tax implications. Juicy Wiggle Limited, a company involved in the manufacture of energy juices, purchased new manufacturing machine on the 1 March 2017 for an amount of R275 000. The machine had a useful life of 5 years on this date and a RO residual value. The machine had a carrying value of R165 000 on the 28th February 2019. On the 1 March 2019, the residual value of the equipment was now estimated to be R20 000. Required: 1. Prepare the journal entries in respect of depreciation for the year ended 29th February 2020 using the Re-allocation Method assuming no journals had been passed yet. (10) 2. Prepare the Profit before tax note AND the note in terms of IAS 8, the statement on Accounting policies, estimate and errors for the year ended 29th February 2020 (10) All workings must be shown. Include comparatives where applicable. Ignore tax implications.
Expert Answer:
Answer rating: 100% (QA)
Before answering this question we must first understand what the depreciation is Depreciation is an ... View the full answer
Related Book For
Cost Management Measuring Monitoring and Motivating Performance
ISBN: 978-0470769423
2nd Canadian edition
Authors: Leslie G. Eldenburg, Susan Wolcott, Liang-Hsuan Chen, Gail Cook
Posted Date:
Students also viewed these accounting questions
-
MacHine Company produces a part used in the manufacture of farm machinery. The following information pertains to the past three years of operations. MacHine Company uses FIFO costing. REQUIRED A....
-
A constant objective in the manufacture of contact lenses is to improve those features that affect lens power and visual acuity. One such feature involves the tooling from which lenses are ultimately...
-
A constant objective in the manufacture of contact lenses is improving the level and variation for those features that affect lens power and visual acuity. One such feature involves the tooling from...
-
just finished the business plan of his start-up company. According to the projections he carried-out, the initial investment is 1,500,000 SAR (assume that we are in the beginning of 2023), which will...
-
The file Cereals contains the calories and sugar, in grams, in one serving of seven breakfast cereals: a. Compute and interpret the coefficient of correlation, r. b. At the 0.05 level of...
-
Mitch Jackson and Rosie Punter are part of the audit team for Hexagon Industries, a large manufacturing, private company client. The clients year-end was December 31, 2025, the end of fieldwork date...
-
A gas turbine works on Brayton cycle between \(27^{\circ} \mathrm{C}\) and \(827^{\circ} \mathrm{C}\). Determine the maximum not work per \(\mathrm{kg}\) and cycle efficiency. Take \(c_{p}=1.005...
-
In addition to a Gantt chart, youve drawn Brian a PERT diagram so that you can communicate the necessity to keep an eye on the critical path. Consult Figure which was derived from the data from...
-
A building is to be cooled in the summer season in a hot and dry region where the outdoor design conditions are 110 oF DB and 65 oF WB. The building sensible and latent heat gains are 300,000 Btu/h...
-
The function (AB) is to be realized using only 2-input NAND gates. The minimum number of 2-input NAND gates required for such a realization is
-
4. A company had a gross profit of $4,500. If the cost of the merchandise was $2,150, what were the company's total sales? 5. Torti Co. had cash sales of S$2,760 and sales on account of $8,200. The...
-
Cite two kinds of catastrophes that occur naturally and can alter climate.
-
Emmanuel Adewale, 25 years old, works in Abuja as a customer relationship manager at a major bank. His current personal portfolio is made mostly of bonds (60%), value stocks (20%), and ETFs (20%)...
-
What does albedo depend upon?
-
Why do earthquakes produce seismic waves?
-
Where do hurricanes form? Describe how they travel.
-
After reading this week's Business Insights in the Week 5 Lesson, use what you've learned and apply it to your own career experiences. For your initial post, provide an example of a time when you...
-
From 1970 to 1990, Sri Lanka's population grew by approximately 2.2 million persons every five years. The population in 1970 was 12.2 million people.What is the best formula for P, Sri Lanka's...
-
Snow Blowers produces and sells snow blowers. Production levels are high in the summer and beginning of fall and then taper off through the winter. Sales are high in the fall and early winter and...
-
Refer to the information in Problem 5.48. Suppose you work for a CA firm and are part of the team auditing the financial statements of Flexible Manufacturers. You have been assigned the...
-
Nova Scotia Lobsters Company is a privately held company that buys lobsters from local fishermen and then delivers them to restaurants in several of Nova Scotia's larger cities. The owners use...
-
An employment test that yields different results over time when taken by the same person lacks ____________. (a) validity (b) reliability (c) realism (d) behavioral anchors
-
The selection technique known as ______________ asks a job candidate to actually perform on the job for a period of time while being observed by a recruiter. (a) mentoring (b) work sampling (c) job...
-
When representatives of management and a labor union meet and negotiate the terms of a new labor contract, this process is known as ____________. (a) boycotting (b) collective bargaining (c)...
Study smarter with the SolutionInn App