Rockwell Ltd has a policy of revaluing its motor vehicles to fair value. The details at...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Rockwell Ltd has a policy of revaluing its motor vehicles to fair value. The details at 30 June 2023 relating to Rockwell Ltd's motor vehicles, which had previously been revalued upwards by $28,000, are as follows. Motor vehicles Less: Accumulated depreciation $ 352 000 88 000 $ 264 000 At the date of the revaluation increase (1 July 2022) the vehicles had a zero residual value and a useful life of 4 years. Depreciation has been calculated using the straight-line method. On 31 December 2023, Rockwell Ltd was informed that the fair value of the vehicles was $200 000. The useful life and residual value have not changed. At 30 June 2024, the carrying amounts are not materially different from fair values. Required (a) Prepare the necessary general journal entries at 31 December 2023. (b) Calculate depreciation expense at 30 June 2024. (c) How would the motor vehicle be shown in financial statements at 30 June 2024? Rockwell Ltd has a policy of revaluing its motor vehicles to fair value. The details at 30 June 2023 relating to Rockwell Ltd's motor vehicles, which had previously been revalued upwards by $28,000, are as follows. Motor vehicles Less: Accumulated depreciation $ 352 000 88 000 $ 264 000 At the date of the revaluation increase (1 July 2022) the vehicles had a zero residual value and a useful life of 4 years. Depreciation has been calculated using the straight-line method. On 31 December 2023, Rockwell Ltd was informed that the fair value of the vehicles was $200 000. The useful life and residual value have not changed. At 30 June 2024, the carrying amounts are not materially different from fair values. Required (a) Prepare the necessary general journal entries at 31 December 2023. (b) Calculate depreciation expense at 30 June 2024. (c) How would the motor vehicle be shown in financial statements at 30 June 2024?
Expert Answer:
Answer rating: 100% (QA)
a Journal Entries at 31 December 2023 On 31 December 2023 the fair value of the motor vehicles was 2... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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...
-
You are the bookkeeper for a small but thriving business. You have asked the owner for the information you need to make adjusting entries for depreciation, supplies, insurance, and wages. He says...
-
You are the bookkeeper for Fastidious Fashions and on review of the business's records and reports you realise that the trial balance does not balance. Your supervisor has asked you to investigate...
-
Rennie Plant Service completed a special landscaping job for Brenton Company. Rennie uses ABC and has the following predetermined overhead allocation rates The Brenton job included $1,500 in plants;...
-
Develop a timeline that identifies the approximate times at which the various stages of the Change Management Continuum Model should occur for the implementation of a major enterprise system. Assume...
-
Many people experience nausea while traveling in a car, plane, or boat. How might you explain this as a function of sensory interaction?
-
Write the schemes similar to (4.17), (4.18), and (4.19) for \(\partial^{2} u /\left.\partial y^{2} ight|_{i, j}\).
-
Recognition of Profit, Percentage-of-Completion In 2010 Gurney Construction Company agreed to construct an apartment building at a price of $1,200,000. The information relating to the costs and...
-
. Question 10 of 20 -15 5 View Policies Current Attempt in Progress Ivanhoe Inc. had the following transactions pertaining to investments in common stock. Jan. 1 Purchased 2,700 shares of Escalante...
-
3. In column G, Brett wants to calculate the number of days the invoice is overdue. If the age of the invoice is greater than 30 days, it is overdue. Calculate the days overdue as follows: a. b. C....
-
The height and weight of baseball players are in table # 10.1.9 ("MLB heightsweights," 2013). Create a scatter plot and find a regression equation between height and weight of baseball players. Then...
-
b. Perodua is Malaysia's second national car manufacturer that is in a partnership with Daihatsu Motor Company of Japan. It has been reported that the annual sales of Perodua amounted to RM200...
-
The home office ships merchandise to the branch at 25 percent above cost. If the balance before closing in the Intracompany Inventory Profit account is 66,000 and Shipments from Home Office amounted...
-
Ex. 02: Workbook 10-8 Able Energy, Inc. is a company listed on NASDAQ (symbol: ABLE). A trader sold 100 shares of this company on May 10, 2004 at 15:52:59 at a price of $2.66 per share. All the...
-
Why do accountants differentiate between the differences between the flow of goods in a warehouse, and the cost flow of goods in a warehouse?
-
11. Given the following equivalency 2.5 centimeters = 1.00 inches. a) Identify the two conversion factors. b) How many centimeters are there in 5.0 inches? c) How many inches are there in 21.0...
-
Question #3 [10 pts] The distribution of IQ scores for high school graduates is normally distributed with mean 400 and standard deviation 80. a) What is the 90th percentile of this distribution of...
-
D Which of the following is considered part of the Controlling activity of managerial accounting? O Choosing to purchase raw materials from one supplier versus another O Choosing the allocation base...
-
Mallory Corporation has a calendar year-end. The corporation has paid estimated payments of $10,000 during 2012 but still owes an additional $5,000 for its 2012 tax year. a. When is the 2012 tax...
-
Jenny earns $34,500 in 2012. Calculate the FICA tax that must be paid by: Jenny: ..............................Soc,Sec. ..................$______________...
-
Dr. Ivan I. Incisor and his wife Irene are married and file a joint return for 2012. Ivan's Social Security number is 477-34-4321 and he is 48 years old. Irene I. Incisor's Social Security number is...
-
Rewrite the finite difference approximations developed in Problem 9 for the situation when the body has the shape of a cylindrical ring of inner and outer radii \(R_{i}\) and \(R_{o}\) and height...
-
Rewrite the approximate factorization method of Section 9.3 .3 for the case of three-dimensional heat conduction equation.
-
The two-dimensional heat equation is solved in a rectangular domain \(0
Study smarter with the SolutionInn App