Coco acquired two non-current assets for cash on 1 August 2015 for use in her party...

Coco acquired two non-current assets for cash on 1 August 2015 for use in her party organizing business:

• a 25-year lease on a shop for $200,000

• a chocolate fountain for $4,000.

The fountain is to be depreciated at 25% pa using the reducing balance method.

A full year of depreciation is charged in the year of acquisition and none in the year of disposal.

Required

Show the ledger account entries for these assets for the years ending 31 October 2015, 2016 and 2017.

Show your workings

Solutions

Expert Solution

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

CONSOLIDATED BALANCE SHEET (millions of dollars) 2016 2015 Assets 2016 2015 Current assets 2016 2015 Cash...

CONSOLIDATED BALANCE SHEET (millions of dollars) 2016 2015 Assets 2016 2015 Current assets 2016 2015 Cash and cash equivalents 3,657 3,705 Notes and accounts receivable 21,394 19,875 Inventories: Crude oil, products and merchandise 10,877 12,037 Materials and supplies 4,203 4,208 Other current assets 1,285 2,798 Total current assets 41,416 42,623 Crude oil, products and merchandise inventories are carried at the lower of current market value or cost (generally determined under the last-in, first-out method – LIFO). Inventory costs include...

Reid acquired two assets in 2017: computer equipment (5-year property) acquired on August 6th with a...

Reid acquired two assets in 2017: computer equipment (5-year property) acquired on August 6th with a basis of $510,000 and machinery (7-year property) on November 9th with a basis of $510,000. Assume that Reid has sufficient income to avoid any limitations. Calculate the maximum depreciation expense including §179 expensing (but not bonus expensing). 1-Section 179 expense? 2-Depreciation on computer? 3-Depreciation on machinery? 4-Total maximum depreciation expense including §179 expense?

In December 2015, Apple had cash of $38.02 billion, current assets of$75.99 billion, and current...

In December 2015, Apple had cash of $38.02 billion, current assets of $75.99 billion, and current liabilities of $75.91 billion. It also had inventories of $2.45 billion.a. What was Apple's current ratio?b. What was Apple's quick ratio?c. In January 2016,Hewlett-Packard had a quick ratio of 0.66 and a current ratio of 0.90.What can you say about the asset liquidity of Apple relative to Hewlett-Packard?

In December 2015, Apple had cash of $37.98 billion, current assets of $76.66 billion, and current...

In December 2015, Apple had cash of $37.98 billion, current assets of $76.66 billion, and current liabilities of $76.12 billion. It also had inventories of $2.45 billion. a. What was Apple's current ratio? b. What was Apple's quick ratio? c. In January 2016, Hewlett-Packard had a quick ratio of 0.66 and a current ratio of 0.90 What can you say about the asset liquidity of Apple relative toHewlett-Packard?

Balance Sheet: 3/31/2016 12/31/2015 9/30/2015 6/30/2015 Assets Current Assets Cash and cash equivalents 293 300 255...

Balance Sheet: 3/31/2016 12/31/2015 9/30/2015 6/30/2015 Assets Current Assets Cash and cash equivalents 293 300 255 232 Net receivables 401 362 385 460 Inventory 374 342 437 306 Other current assets 60 43 53 45 Total Current Assets 1,128 1,047 1,130 1,043 Long-term investments 128 97 long dash— 200 Property, plant, and equipment 979 991 995 1,052 Goodwill 744 748 736 742 Other assets 777 830830 903903 797 Total Assets 3,756 3 comma 7133,713 3 comma 7643,764 3,834 Liabilities Current...

At 1 July 2014, Lobstar Ltd acquired the following non-current assets: Equipment $100 000 Vehicles $80...

At 1 July 2014, Lobstar Ltd acquired the following non-current assets: Equipment $100 000 Vehicles $80 000 They are in different classes of non-current assets and are to be measured at fair value. The expected useful lives of vehicles and equipment are 5 years and 10 years, respectively. At 30 June 2015, the fair values of both assets were assessed. The equipment had a fair value of $82 000, and the vehicles, $70 000. The remaining useful lives were assessed...

Assets Current assets: Cash $ &nbsp

Assets Current assets: Cash $ 500,000 Marketable securities 100,000 Accounts receivable $ 2,450,000 Less: Allowance for bad debts 250,000 2,200,000 Inventory 5,400,000 Total current assets $ 8,200,000 Fixed assets: Plant and equipment, original cost $ 31,300,000 Less: Accumulated depreciation 13,100,000 Net plant and equipment 18,200,000 Total assets $ 26,400,000 Liabilities and Owners’ Equity Current liabilities: Accounts payable $ 5,800,000 Accrued expenses ...

Avig Ltd acquired 80% of the issued capital of Non Ltd on 1 July 2015. The...

Avig Ltd acquired 80% of the issued capital of Non Ltd on 1 July 2015. The following three transactions occurred. 1) On 1 July 2018, Avig Ltd purchased equipment from Non Ltd for $1,500,000. The equipment had originally cost Non Ltd $1,200,000 when acquired on 1 July 2016. Non Ltd had been depreciating the equipment over 12 years using the straight-line method. Avig Ltd expected the remaining useful life of the equipment to be 10 years and also depreciates using...

ARID Company Income Statement FYE 12/31 Assets 2015 2014 Current assets Cash $ 45,000 $ 23,000...

ARID Company Income Statement FYE 12/31 Assets 2015 2014 Current assets Cash $ 45,000 $ 23,000 Short-term investments 36,000 18,000 Accounts receivable 94,000 89,000 Inventory 82,000 68,000 Total current assets 257,000 198,000 Plant assets (net) 550,000 560,000 Total assets $807,000 $758,000 Liabilities and Stockholders' Equity Current liabilities Accounts payable 140,000 120,000 Income taxes payable 35,000 38,000 Total current liabilities 175,000 158,000 Long-term liabilities Bonds payable 160,000 170,000 Total liabilities 335,000 328,000 Stockholders' equity Common stock ($5 par) 195,000 185,000 Retained...

What are current assets? How are they shown on the balance sheet? What are non-current assets?...

What are current assets? How are they shown on the balance sheet? What are non-current assets? How are they shown on the balance sheet?

Subjects