To: Senior Consultant

Hi Senior Consultant,

I have an urgent request from one of our clients, Mongo Ltd.

To give you a bit of background: Mongo Ltd constructed a Special Machine and incurred the following costs in doing so:

Amounts paid to employees to build the machine	$132,000
Raw materials consumed in building the machine	$49,500
Depreciation of manufacturing equipment attributed to the construction of the Special Machine	$27,500

Based on the above information, can you please help with the questions in the Appendix A?

Regards,

Appendix A: Based on the above scenario, answer the following questions:

A	Provide the journal entries that Mongo Ltd would use to account for the construction of the asset.
B	Assume that immediately after the journal entries in part (a) have been made, new information becomes available that indicates that the recoverable amount of the Special Machine is only $176,000. Provide the adjusting journal entries.
C	Which are the bodies that enforce accounting regulation in Australia? Explain their key function.

Answer rating: 100% (QA)

AnsA AnsB AnsC Australian Securities and Investments Commission ASIC regulates accounting as empow... View the full answer