Question
In: Accounting
At 31 December 2018, Prince Ltd reported these non-current assets: $ $ Building 318,000...
- At 31 December 2018, Prince Ltd reported these non-current assets:
|
$ |
$ |
|
|
Building |
318,000 |
|
|
Less: Accumulated depreciation |
145,200 |
172,800 |
|
Equipment |
720,000 |
|
|
Less: Accumulated depreciation |
288,000 |
432,000 |
|
Total non-current assets |
604,800 |
During 2019, the following selected transactions occurred:
May 1 Sold equipment that cost $720,000 for $420,000.
June 30 There was an indication that the building could be impaired due to flooding, Prince Ltd calculated the recoverable amount of the building. The net selling price was $155,000 and the value in use was estimated to be $147,000.
Prince Ltd uses straight-line depreciation for buildings and equipment. The building is estimated to have a 40-year useful life and no residual value. The equipment is estimated to have a 10-year useful life and no residual value.
Required
- Journalise the transactions that occurred during 2019 [8 marks]
Explain the difference between impairment and depreciation [3 Marks]
Solutions
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ekkarill92 answered 2 years agoRelated Solutions
Labels: Current assets Current liabilities December 31, 2018 Expenses For the Year Ended December 31, 2018...
Labels: Current assets Current liabilities December 31,
2018 Expenses For the Year Ended December 31, 2018 Property, plant,
and equipment Revenues Amount Descriptions: Book
value-building Book value-equipment Change in retained earnings Net
income Net loss Retained earnings, December 31, 2018 Retained
earnings, January 1, 2018 Total assets Total current assets Total
expenses Total liabilities Total liabilities and stockholders’
equity Total property, plant, and equipment Total revenues Total
stockholders’ equity
CHART OF ACCOUNTS
Lamp Light Company
General Ledger
ASSETS
11
Cash...
At December 31, 2016, Stacy McGill Corporation reported current assets of $370,000 and current liabilities of...
At December 31, 2016, Stacy McGill Corporation reported current
assets of $370,000 and current liabilities of $200,000. The
following items may have been recorded incorrectly.
1. Goods purchased costing $22,000 were shipped f.o.b. shipping
point by a supplier on December 28. McGill received and recorded
the invoice on December 29, 2016, but the goods were not included
in McGill’s physical count of inventory because they were not
received until January 4, 2017.
2. Goods purchased costing $15,000 were shipped f.o.b....
ALLENDALE COMPANY Balance Sheets As of December 31 2019 2018 Assets Current assets Cash $ 40,000...
ALLENDALE COMPANY
Balance Sheets
As of December 31
2019
2018
Assets
Current assets
Cash
$
40,000
$
36,000
Marketable securities
20,000
6,000
Accounts receivable (net)
54,000
46,000
Inventories
135,000
143,000
Prepaid items
25,000
10,000
Total current assets
274,000
241,000
Investments
27,000
20,000
Plant (net)
270,000
255,000
Land
29,000
24,000
Total assets
$
600,000
$
540,000
Liabilities and Stockholders’
Equity
Liabilities
Current liabilities
Notes payable
$
17,000
$
6,000
Accounts payable
113,800
100,000
Salaries payable
21,000
15,000
Total current liabilities
151,800...
Top of the World, Ltd. reported the following summarized balance sheet at December 31, 2010: Assets:...
Top of the World, Ltd. reported the following summarized
balance sheet at December 31, 2010:
Assets:
Current assets
$11,600
Property and equipment, net
35,000
Total assets
$46,600
Liabilities:
Liabilities
$23,000
Stockholders’ equity:
Common stock, $0.10 par (25,000
shares issued and outstanding)
2,500
Preferred stock, $20 par (100 shares
issued and outstanding)
2,000
Paid-in capital in excess of
par
7,800
Retained earnings
11,300
Total liabilities and equity
$46,600
During 2011, Top of the World, Ltd. completed these transactions
that...
Albert Company has an investment in the voting shares of Prince Ltd. On December 31, Year...
Albert Company has an investment in the voting shares of Prince
Ltd. On December 31, Year 5, Prince reported a net income of
$860,000 and declared dividends of $200,000. During Year 5, Albert
had sales to Prince of $915,000, and Prince had sales to Albert of
$500,000. On December 31, Year 5, the inventory of Albert contained
an after-tax intercompany profit of $40,000, and the inventory of
Prince contained an after-tax intercompany profit of $72,000. On
January 1, Year 4,...
Presented below is the balance sheet for HHD, Inc., at December 31, 2018. Current assets $...
Presented below is the balance sheet for HHD, Inc., at December
31, 2018.
Current assets
$
656,000
Investments
542,000
Property, plant, and
equipment
2,392,000
Intangible assets
228,000
Total assets
$
3,818,000
Current liabilities
$
456,000
Long-term liabilities
722,000
Shareholders' equity
2,640,000
Total liabilities and
shareholders' equity
$
3,818,000
The captions shown in the summarized statement above include the
following:
Current assets: cash, $164,000; accounts receivable, $214,000;
inventories, $239,000; and prepaid insurance, $39,000.
Investments: investments in common stock, short term, $104,000,...
Presented below is the balance sheet for HHD, Inc., at December 31, 2018. Current assets $...
Presented below is the balance sheet for HHD, Inc., at December
31, 2018.
Current assets
$
656,000
Investments
542,000
Property, plant, and
equipment
2,392,000
Intangible assets
228,000
Total assets
$
3,818,000
Current liabilities
$
456,000
Long-term liabilities
722,000
Shareholders' equity
2,640,000
Total liabilities and
shareholders' equity
$
3,818,000
The captions shown in the summarized statement above include the
following:
Current assets: cash, $164,000; accounts receivable, $214,000;
inventories, $239,000; and prepaid insurance, $39,000.
Investments: investments in common stock, short term, $104,000,...
On December 31, Nate Inc. reported the following (in millions): Current Assets Current Liabilities Long-term Liabilities...
On December 31, Nate Inc. reported the following (in
millions):
Current Assets
Current Liabilities
Long-term Liabilities
Equity
$4,863
$4,544
$5,939
$1,305
What amount did the company report as total assets?
Select one:
a. $6,925 million
b. None of the these are correct.
c. $16,651 million
d. $10,483 million
e. $14,041 million
Nabors Company reported the following current assets and liabilities for December 31 for two recent years:
Nabors Company reported the following current assets and
liabilities for December 31 for two recent years:Dec. 31, Current YearDec. 31, Previous YearCash$1,850$2,490Temporary investments4,0305,580Accounts receivable7,5603,810Inventory3,0202,970Accounts payable8,4006,600Required:a. Compute the quick ratio on December 31 of
both years. If required, round your answers to one decimal
place.Quick RatioDecember 31, current yearDecember 31, previous yearb. Is the quick ratio improving or
declining?A business issued a 45-day, 4% note for $240,000 to a creditor
on account.Journalize the entries to record (a) the issuance of the...
Nabros Company reported the following current assets and liabilities for December 31 for two recent years
Nabros Company reported the following current assets and liabilities for December 31 for two recent yearsParticularsDec 31,Current year Dec 31,Previous yearCash650680Temporary Investments1,5001,550Accounts Receivable700770Inventory1,2501,400Accounts payable2,3752,000(a) Compute the quick ratio on December 31 of both year(b) Interpret the company 's Quick ratio.Is the quick ratio improving or declining
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