Momo Manufacturing is a growing manufacturing company in Malaysia. Due to an increase in demand, Momo...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Momo Manufacturing is a growing manufacturing company in Malaysia. Due to an increase in demand, Momo has decided to purchase additional lorries to ensure efficient delivery of manufacturing items. On 5 November 2014, the company purchased a lorry at a cost of RM 440,000. In addition, the company incurred road tax of RM 3,500, insurance cost of RM 4,500 and painting of company's logo of RM 1,500. The company also incurred maintenance cost of RM2,500 on the lorries after the purchase. The company depreciates motor vehicle at 20% per annum using straight line method on monthly basis. Momo Manufacturing closes its books on 30 June each year. a- Explain the term Property, plant and equipment in accordance to MFRS 116.(4m) b- Explain whether the purchased lorry fulfils the recognition criteria of PPE in accordance to MFRS 116. (4m) c- Calculate the initial cost of the lorry. (5m) Momo Manufacturing is a growing manufacturing company in Malaysia. Due to an increase in demand, Momo has decided to purchase additional lorries to ensure efficient delivery of manufacturing items. On 5 November 2014, the company purchased a lorry at a cost of RM 440,000. In addition, the company incurred road tax of RM 3,500, insurance cost of RM 4,500 and painting of company's logo of RM 1,500. The company also incurred maintenance cost of RM2,500 on the lorries after the purchase. The company depreciates motor vehicle at 20% per annum using straight line method on monthly basis. Momo Manufacturing closes its books on 30 June each year. a- Explain the term Property, plant and equipment in accordance to MFRS 116.(4m) b- Explain whether the purchased lorry fulfils the recognition criteria of PPE in accordance to MFRS 116. (4m) c- Calculate the initial cost of the lorry. (5m)
Expert Answer:
Answer rating: 100% (QA)
a Property plant and equipment PPE in accordance with MFRS 116 refers to tangible assets that are he... View the full answer
Related Book For
Accounting Information Systems basic concepts and current issues
ISBN: 978-0078025334
3rd edition
Authors: Robert Hurt
Posted Date:
Students also viewed these accounting questions
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
-
Ms. Berry is employed as an Accounts Manager in the Jamaican company ADM Limited. In 2022, she earned a monthly salary of $820,000.00. She also sits on the board of directors of FHC Company Limited...
-
Consider the market for milk. Draw a supply curve and a demand curve (is the demand curve elastic on inelastic). Label the equilibrium price and quantity. Suppose that the production of milk causes...
-
A cold plate is an active cooling device that is attached to a heat-generating system in order to dissipate the heat while maintaining the system at an acceptable temperature. It is typically...
-
Which of the following would increase control risk in a computer processing system? a. The custodian of computer records maintains custody of computer program instructions and detailed listings. b....
-
On January 7, Red Tucker, Inc., paid $254,700 for equipment used in manufacturing automotive supplies. In addition to the basic purchase price, the company paid $500 transportation charges, $300...
-
In early January 2013, Strawberry Corporation applied for a trade name, incurring legal costs of $50,000. In January 2014, Strawberry incurred $20,000 of legal fees in a successful defense of its...
-
20 0.45 points eBook References Brief Exercise 8-11 (Algo) Record warranty liability (LO8-5) Windy introduces a new compact music player that carries a two-year warranty against manufacturer's...
-
Please complete the Express Catering, Inc.s 2014 tax return based upon the information provided below. If required information is missing, use reasonable assumptions to fill in the gaps. Ignore any...
-
b. The following code word is received. Use the Hamming decoding process to determine whether, 0 0 0 1 0 0 1 0 0 1 i. an error exists ii. If an error exists, determine which bit is in error c. State...
-
Suppose you are a cattle producer who is attempting to increase the weight of your cattle by 300 pounds to bring them up to market weight. Since you have already negotiated a fixed price for these...
-
1) Explain and elaborate on diffusion. Explain and elaborate on transmitters. Explain and elaborate on the differences between relational channels and non-relational channels. 2) Explain and...
-
The following table describes a consulting project. Normal Required Time (Week) Activity A B C D (2) E F G Preceding Activities A A B C B, C D, E, F 2 5 4 4 3 5 3 Crash Required Time (Week) 1 2 2 2 1...
-
Company ABC recently sold CAD 10,000,000 worth of products to one of its Canadian customers and is expected to receive the payment in CAD in 30 days. Your management team would like to try out...
-
despite meticulous efforts to maintain accuracy, are an inevitable aspect of financial record-keeping. These errors can occur at various stages of the accounting process and may lead to discrepancies...
-
Write a GUI-based program that allows the user to open, edit, and save text files. The GUI should include a labeled entry field for the filename and multi-line text widget for the text of the file....
-
Shreemaya Hotel in !adore was facing a problem of low demand for its rooms due to off season. The Managing Director (MD) of the hotel, Mrs. Sakina was very worried. She called upon the Marketing...
-
Multiple choice questions. This series of questions deals with XBRLs Global Ledger taxonomy. Before attempting to answer them, point your Web browser to www.xbrl.org. Locate the slide presentation on...
-
Indicate whether each of the following statements is (i) Always true, (ii) Sometimes true, or (iii) Never true. For those that are (ii) Sometimes true, explain when the statement is true. a. The...
-
a. What activities are accounted for in the sales / collection process? b. What are the steps in the sales / collection process? c. How are the five generic elements of the AIS exemplified in the...
-
_______________ is defined as the degree to which a set of inherent characteristics fulfill requirements. A. Fitness for use B. Conformance to requirements C. Metrics D. Quality
-
The ___________ must be the basis for a project cost estimate if you plan to create a cost baseline and use earned value management as part of monitoring and controlling costs. A. project schedule B....
-
Using a(n) _________ approach to developing cost estimates requires a good deal of expert judgment and is generally less costly than others are, but it can also be less accurate. A. bottom-up B....
Study smarter with the SolutionInn App