Cekap Clearprint is a company providing various types of printing services. On 1 June 2016, a...

 

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Cekap Clearprint is a company providing various types of printing services. On 1 June 2016, a high-tech digital printing machine was acquired from Japan. The purchase price was RM140,000. Below are the additional costs incurred in conjunction to the acquisition of the machine: RM Delivery and handling cost Import duties 25,000 6,750 Installation costs 23,925 Testing of machine Training cost Annual maintenance of the machine Lubricants on the machine yearly 5,000 8,000 12,000 5,000 The machine was available for use starting 1 July 2016 whereby depreciation was also charged from this date monthly. The expected useful life of the machine was 10 years with residual value of RM8,500. Required: 1. State journal entries on expenses written off in SOPL 2. Prepare SOPL extract showing expenses for the year ended 31 December 2016. 3. Prepare SOFP extract showing non-current assets as at 31 December 2016. Cekap Clearprint is a company providing various types of printing services. On 1 June 2016, a high-tech digital printing machine was acquired from Japan. The purchase price was RM140,000. Below are the additional costs incurred in conjunction to the acquisition of the machine: RM Delivery and handling cost Import duties 25,000 6,750 Installation costs 23,925 Testing of machine Training cost Annual maintenance of the machine Lubricants on the machine yearly 5,000 8,000 12,000 5,000 The machine was available for use starting 1 July 2016 whereby depreciation was also charged from this date monthly. The expected useful life of the machine was 10 years with residual value of RM8,500. Required: 1. State journal entries on expenses written off in SOPL 2. Prepare SOPL extract showing expenses for the year ended 31 December 2016. 3. Prepare SOFP extract showing non-current assets as at 31 December 2016.

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Maintenance expenses and lubricants on the machine is charged to income statement Date General Jou... View the full answer