Prepare the asset realisation account in the general ledger of J&D Traders on 1 May 20.16....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Prepare the asset realisation account in the general ledger of J&D Traders on 1 May 20.16. a. Complete the note for property, plant and equipment to the financial statements of J&D Traders for the year ended 30 June 20.16 by calculating the missing values. b. Calculate the correct depreciation amount that should be included in the statement of profit or loss and other comprehensive income of J&D Traders for the year ended 30 June 20.16. C. NB. Round amounts off to the nearest rand. INFORMATION J&D Traders Extract from the incomplete Statement of profit or loss and other comprehensive income for the year ended 30 June 20.16 R 835 000 Gross profit Other expenses (95 000 ) Depreciation (3 210 ) Loss on sale of the vehicle *Depreciation was calculated for existing machinery only. (excluding vehicles and new machinery) The following incomplete note is an extract from the financial statements of J&D Traders for the year ended 30 June 20.16: Machinery Vehicles Total R R 990 357 Carrying amount - 30 June 20.15 Cost 665 000 950 000 1 350 000 (285 000) (359 643) Accumulated depreciation Movements during the year (i) Acquisitions Disposals Depreciation (v) (ii) (vi) Carrying amount - 30 June 20.16 (iii) (vii) Cost (iv) (vii) (?) Accumulated depreciation Additional information 1. Depreciation is provided on assets according to the following methods: • Machinery: straight-line method over the useful life of 10 years. • Vehicles: production unit method. New machinery was bought on 1 December 20.15 for €75 000. The exchange rate at the time was €= R13. Import duties and customs amounted to R5 000. The machinery was ready for use as intended by management on 2. 4 January 20.16. The following schedule was received from the bookkeeper: 3. Details of vehicles for the period 1 July 20.15 to 30 June 20.16 Begin (km) End (km) Estimated Vehicle ID Cost R450 000 45 000 90 000 500 000 DG54TT GP R450 000 30 000 75 000 500 000 CB45TY GP R250 000 185 000 225 000 350 000 SLP456GP R200 000 280 000 *330 000 350 000 TPK942GP * This kilometre reading was taken on the date of sale, 1 May 20.16. Vehicle TPK942GP was sold on credit to M. Mahlangu on 1 May 20.16. Prepare the asset realisation account in the general ledger of J&D Traders on 1 May 20.16. a. Complete the note for property, plant and equipment to the financial statements of J&D Traders for the year ended 30 June 20.16 by calculating the missing values. b. Calculate the correct depreciation amount that should be included in the statement of profit or loss and other comprehensive income of J&D Traders for the year ended 30 June 20.16. C. NB. Round amounts off to the nearest rand. INFORMATION J&D Traders Extract from the incomplete Statement of profit or loss and other comprehensive income for the year ended 30 June 20.16 R 835 000 Gross profit Other expenses (95 000 ) Depreciation (3 210 ) Loss on sale of the vehicle *Depreciation was calculated for existing machinery only. (excluding vehicles and new machinery) The following incomplete note is an extract from the financial statements of J&D Traders for the year ended 30 June 20.16: Machinery Vehicles Total R R 990 357 Carrying amount - 30 June 20.15 Cost 665 000 950 000 1 350 000 (285 000) (359 643) Accumulated depreciation Movements during the year (i) Acquisitions Disposals Depreciation (v) (ii) (vi) Carrying amount - 30 June 20.16 (iii) (vii) Cost (iv) (vii) (?) Accumulated depreciation Additional information 1. Depreciation is provided on assets according to the following methods: • Machinery: straight-line method over the useful life of 10 years. • Vehicles: production unit method. New machinery was bought on 1 December 20.15 for €75 000. The exchange rate at the time was €= R13. Import duties and customs amounted to R5 000. The machinery was ready for use as intended by management on 2. 4 January 20.16. The following schedule was received from the bookkeeper: 3. Details of vehicles for the period 1 July 20.15 to 30 June 20.16 Begin (km) End (km) Estimated Vehicle ID Cost R450 000 45 000 90 000 500 000 DG54TT GP R450 000 30 000 75 000 500 000 CB45TY GP R250 000 185 000 225 000 350 000 SLP456GP R200 000 280 000 *330 000 350 000 TPK942GP * This kilometre reading was taken on the date of sale, 1 May 20.16. Vehicle TPK942GP was sold on credit to M. Mahlangu on 1 May 20.16.
Expert Answer:
Answer rating: 100% (QA)
Stepbystep explanation tCost o Mew Machinary Depian oF disposed ... View the full answer
Related Book For
Financial and Managerial Accounting the basis for business decisions
ISBN: 978-0078111044
16th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
Posted Date:
Students also viewed these accounting questions
-
The Cash account in the general ledger of Lyco Corporation showed a balance of $21,749 at December 31 (but prior to performing a bank reconciliation). The companys bank statement showed a balance of...
-
The cash account in the general ledger of XYZ Company shows a balance of $18,700 at June 30, 2004. The June 30 bank statement; however, shows a balance of $19,800. The only reconciling items consist...
-
The Cash account in the general ledger of Ciavarella Corporation shows a balance of $112,000 at December 31, year 1 (prior to performing a bank reconciliation). The company's bank statement shows a...
-
In 2013, Natural Selection, a nationwide computer dating service, had $500 million of assets and $200 million of liabilities. Earnings be-fore interest and taxes was $120 million, interest expense...
-
(a) What is malware? (b) Distinguish between viruses and worms. (c) How do most viruses spread between computers today? (d) Describe how directly propagating worms move between computers. (e) Why are...
-
Indicate whether each of the following statements is true or false: (a) If something is oxidized, it is formally losing electrons. (b) For the reaction Fe3+(aq) + Ci2+(aq) Fe2+(aq) + Co3+(aq), Fe3+...
-
The probability that the noise level of a wide-band amplifier will exceed \(2 \mathrm{~dB}\) is 0.05. Use Table 1 or software to find the probabilities that among 12 such amplifiers the noise level...
-
The bookkeeper for Brooks Equipment Repair made a number of errors in journalizing and posting, as described below. 1. A credit posting of $450 to Accounts Receivable was omitted. 2. A debit posting...
-
Hampton Company reports the following information for its recent calendar year. Income Statement Data Sales Expenses: Cost of goods sold Salaries expense Depreciation expense Net income Required:...
-
Colligative Properties (ALEKS lab) Introduction Lab Data Verify your mass calculation Verify your molality calculation Did you account for the freezing-point of your DI water? Did you report your...
-
A mover is moving a big box out of the moving truck. She places the box on the ramp at 3 0 degrees to the horizontal so that she can move it out of the truck. A frictional force of 6 4 N exists...
-
1. Please describe clearly the application of the Library Information System diagram in a School library. Complete with examples of each subsystem in the those diagrams! 2. Look for some examples of...
-
Fill these out. Make sure when u get to the trial balance the numbers are the same when totaled. Also explain how you got transaction number 6 and 7 numbers. Trial Balance Assume this business...
-
customer defines the quality objectives for a firm and individuals decide if the objectives were met. Thinking of your experience as a customer, please describe a customer experience for a product or...
-
Properly classifying the variables that are part of a study is essential to making a correct analysis in SPSS. SPSS classifies variables as nominal, ordinal, or scale and requires you to explain any...
-
Journalize the following transactions of Cathcart Video Productions Inc.: April 19 Issued 2,000 common shares at $10 per share. July 22 Declared and paid a cash dividend of $0.60 per common share...
-
Data analysis and algorithm Merge Sort: 5,3,3,9,6 a) Sort array in Ascending order using merge sort. b) Draw its recursive tree.
-
Whats the difference between an ordinary annuity and an annuity due? What type of annuity is shown below? How would you change the time line to show the other type of annuity?
-
Malibu Corporation has monthly fixed costs of $63,000. It sells two products for which it has provided the following information: a. What total monthly sales revenue is required to break even if the...
-
Ken Hensley Enterprises, Inc., is a small recording studio in St. Louis. Rock bands use the studio to mix high-quality demo recordings distributed to talent agents. New clients are required to pay in...
-
Define the term activity base.
-
According to the pecking order theory: A. new debt is preferable to new equity. B. new debt is preferable to internally generated funds. C. new equity is always preferable to other sources of capital.
-
According to the static trade-off theory: A. debt should be used only as a last resort. B. companies have an optimal level of debt. C. the capital structure decision is irrelevant.
-
All else equal, the use of long-maturity debt is expected to be greater in those markets in which: A. inflation is low. B. capital markets are passive and illiquid. C. the legal systems protection of...
Study smarter with the SolutionInn App