Wondering how much it would be to do my accounting homework

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Wondering how much it would be to do my accounting homework
Answered Same DayOct 23, 2021

Answer To: Wondering how much it would be to do my accounting homework

Anamika answered on Oct 27 2021
153 Votes
1)
Determining Cost of Land
    $ 356,940
Working Notes:
· 36,000 + 287,000 + 1,940 + 14,700 +22,100
· 361,740 – 4,800
· 356,940
2)
Partial Year Depreciation
Equipment Cost - $
81,000
Residual Value- $5,000
Useful Life - 10 years
Put to use - 1st April
a) Depreciation – Straight Line Method
Year 1
· 81,000 – 5,000 = $76,000
· 76,000/10 = $7,600 (Depreciation per year)
Depreciation from 1st April to 31st Dec
    $5,700
· 7,600/12 * 9 =
Year 2
Depreciation from 1st Jan – 31st Dec
= $7,600
b) Depreciation – Double Declining Method
Year 1
Rate of Depreciation
· 7,600/76,000*100 = 10%
· 10% * 2 = 20% p.a.
Depreciation from 1st April to 31st Dec
· 76,000 * 20/100 * 9/12
· $11,400
Year 2
· 76,000 – 11,400 = 64,600
· 64,600 * 20%
· $12,920
3)
Disposal of Fixed Assets
Equipment Cost - $322,900
Estimated Life – 9 Years
Residual Value - $42,100
a) Depreciation – Straight Line Method
Year 1
· $31,200
Year 2
· $31,200
Year 3
· $31,200
Working Notes Year 1
· 322,900 – 42,100 = 280,800
· 280,800/9 = $31,200 annually
b) Book value of the Equipment on 1st Jan of year 4 is
· $ 229,300
Working Notes
3 years depreciation on Straight Line Method basis is
· 31,200 * 3 = 93,600
· 322,900 – 93,600 = $229,300
c) Book value as on 3rd January of year 4 is
· $229,300 (as calculated in b)
Sales value is - $217,800
Loss on Sale is – 229,300 – 217800 = 11,500
Entry
    
    Debit $
    Credit $
    Cash
    $217,800
    
    Loss on Sale of equipment
    $11,500
    
     Equipment
(equipment sold in loss)
    
    $229,300
Note – Depreciation will not be charged in the year of sale.
d) If the sales value is $233,900
Profit on sale - 233,900 – 229,300 = $4,600
    
    Debit $
    Credit $
     Cash
    $233,900
    
     ...
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