Question
In: Accounting
3: Access Inc. is in operation from last 8 years, and have a balance of $640,000...
3: Access Inc. is in operation from last 8 years, and have a balance of $640,000 in the machinery account as at Jan 01, 2000. the remaning life of this machinery is 7 years and had a salvage value of 63000. On August 01, 2000, the Company made additions to the machinery a/c of $98,000. The machinery is expected to produce a total of 200,000 units. The machinery was used in the production in the following manner:
Year Production
2000 13,400
2001 34,200
2002 38,400
2003 39,100
2004 31,900
2005 28,060
2006 14,940
There was another addition to the machineries for $126,000 on Jan 01, 2002. The useful life of the asset is 9 years and it can realize $13,400 at the end of 9 years. On Jan 01, 2006, the company reassessed the useful life of this machiney to be 11 years, while the salvage value remained the same.
On Oct 01, 2005, the company bought an equipemt, which was expected to be used a total of 46,000 machine hours (MH) The equipment was used as per the below mentioned schedule:
2005 $ 1,730
2006 $ 4,200
2007 $ 3,100
2008 $ 4,600
2009 $ 5,900
2010 $ 7,070
At the end of 2010, the company assessed that its original estimation was wrong and the equipment is expected to work only 12,000 more machine hours. During 2011, the equipment was used for 4,800MH, 2012 5,300MH, and rest of the hours were used in 2013.
Prepared a schedule of the machinery and equipment account together.
Show your working notes properly.
Hint: For presentation purpose, you can give numbering to the machinese,
Solutions
Expert Solution
| Composite schedule is as follows- | ||
| Date | Particulars | Amount |
| 01-01-2000 | Opening | 6,40,000 |
| 01-08-2000 | Additions | 98,000 |
| 2000 | Depreciation | -88,995 |
| 31-12-2000 | Net block | 6,49,005 |
| 2001 | Depreciation | -99,187 |
| 31-12-2001 | Net block | 5,49,819 |
| 01-01-2002 | additions | 1,26,000 |
| 2002 | Depreciation | -1,13,756 |
| 31-12-2002 | Net block | 5,62,063 |
| 2003 | Depreciation | -1,14,099 |
| 31-12-2003 | Net block | 4,47,964 |
| 2004 | Depreciation | -1,10,571 |
| 31-12-2004 | Net block | 3,37,394 |
| 01-01-2005 | Additions | 46,000 |
| 2005 | Depreciation | -1,10,419 |
| 31-12-2005 | Net block | 2,72,975 |
| 2006 | Depreciation | -95,087 |
| 31-12-2006 | Net block | 1,77,888 |
| 2007 | Depreciation | -13,336 |
| 31-12-2007 | Net block | 1,64,552 |
| 2008 | Depreciation | -14,836 |
| 31-12-2008 | Net block | 1,49,715 |
| 2009 | Depreciation | -16,136 |
| 31-12-2009 | Net block | 1,33,579 |
| 2010 | Depreciation | -17,306 |
| 31-12-2010 | Net block | 1,16,273 |
| 2011 | Depreciation | -17,996 |
| 31-12-2011 | Net block | 98,276 |
| 2012 | Depreciation | -18,805 |
| 31-12-2012 | Net block | 79,472 |
| 2013 | Depreciation | -3,072 |
| 31-12-2013 | Net block | 76,400 |
Machine 1 working is as follows-
| Date | Particulars | Amount |
| 01-01-2000 | Opening value | 6,40,000 |
| Depreciation (640,000-63,000)/7 | -82,429 | |
| 31-12-2000 | Net block | 5,57,571 |
| 2001 | Depreciation | -82,429 |
| 31-12-2001 | Net block | 4,75,143 |
| 2002 | Depreciation | -82,429 |
| 31-12-2002 | Net block | 3,92,714 |
| 2003 | Depreciation | -82,429 |
| 31-12-2003 | Net block | 3,10,286 |
| 2004 | Depreciation | -82,429 |
| 31-12-2004 | Net block | 2,27,857 |
| 2005 | Depreciation | -82,429 |
| 31-12-2005 | Net block | 1,45,429 |
| 2006 | Depreciation | -82,429 |
| 31-12-2006 | Net block | 63,000 |
Machine 2 working is as follows-
| Machine 2 | ||
| Date | Particulars | Amount |
| 01-08-2000 | Addition | 98,000 |
| 2000 | Depreciation | 6,566 |
| 31-12-2000 | Net block | 91,434 |
| 2001 | Depreciation | 16,758 |
| 31-12-2001 | Net block | 74,676 |
| 2002 | Depreciation | 18,816 |
| 31-12-2002 | Net block | 55,860 |
| 2003 | Depreciation | 19,159 |
| 31-12-2003 | Net block | 36,701 |
| 2004 | Depreciation | 15,631 |
| 31-12-2004 | Net block | 21,070 |
| 2005 | Depreciation | 13,749 |
| 31-12-2005 | Net block | 7,321 |
| 2006 | Depreciation | 7,321 |
| 31-12-2006 | Net block | - |
Machine 3 working is as follows-
| Machine 3 | ||
| Date | Particulars | Amount |
| 01-08-2000 | Addition | - |
| 2000 | Depreciation | - |
| 31-12-2000 | Net block | - |
| 2001 | Depreciation | - |
| 31-12-2001 | Net block | - |
| 01-01-2002 | Addition | 1,26,000 |
| 2002 | Depreciation | 12,511 |
| 31-12-2002 | Net block | 1,13,489 |
| 2003 | Depreciation | 12,511 |
| 31-12-2003 | Net block | 1,00,978 |
| 2004 | Depreciation | 12,511 |
| 31-12-2004 | Net block | 88,467 |
| 2005 | Depreciation | 12,511 |
| 31-12-2005 | Net block | 75,956 |
| 2006 | Depreciation | 1,137 |
| 31-12-2006 | Net block | 74,818 |
| 2007 | Depreciation | 10,236 |
| 31-12-2007 | Net block | 64,582 |
| 2008 | Depreciation | 10,236 |
| 31-12-2008 | Net block |
5
 ekkarill92 answered 1 year agoRelated SolutionsA study was conducted on students from a particular high school over the last 8 years....A study was conducted on students from a particular high school
over the last 8 years. The following information was found
regarding standardized tests used for college admitance. Scores on
the SAT test are normally distributed with a mean of 1010 and a
standard deviation of 200. Scores on the ACT test are normally
distributed with a mean of 20.9 and a standard deviation of 4.4. It
is assumed that the two tests measure the same aptitude, but use
different...
A study was conducted on students from a particular high school over the last 8 years....A study was conducted on students from a particular high school
over the last 8 years. The following information was found
regarding standardized tests used for college admitance. Scores on
the SAT test are normally distributed with a mean of 1109 and a
standard deviation of 196. Scores on the ACT test are normally
distributed with a mean of 20.9 and a standard deviation of 4.4. It
is assumed that the two tests measure the same aptitude, but use
different...
A study was conducted on students from a particular high school over the last 8 years....A study was conducted on students from a particular high school
over the last 8 years. The following information was found
regarding standardized tests used for college admitance. Scores on
the SAT test are normally distributed with a mean of 992 and a
standard deviation of 201. Scores on the ACT test are normally
distributed with a mean of 19.1 and a standard deviation of 5.1. It
is assumed that the two tests measure the same aptitude, but use
different...
Westerville Company reported the following results from last year’s operations: Sales $ 2,000,000 Variable expenses 640,000...
Westerville Company reported the following results from last
year’s operations:
Sales
$
2,000,000
Variable
expenses
640,000
Contribution
margin
1,360,000
Fixed expenses
860,000
Net operating
income
$
500,000
Average operating
assets
$
1,250,000
This year, the company has a $250,000 investment opportunity
with the following cost and revenue characteristics:
Sales
$
400,000
Contribution margin
ratio
70
% of sales
Fixed expenses
$
220,000
The company’s minimum required rate of return is 10%.
6.
What is the ROI...
Silver Sun Industrial is considering a project that would last for 3 years and have a...Silver Sun Industrial is considering a project that would last
for 3 years and have a cost of capital of 14.36 percent. The
relevant level of net working capital for the project is expected
to be 24,000 dollars immediately (at year 0); 7,000 dollars in 1
year; 36,000 dollars in 2 years; and 0 dollars in 3 years. Relevant
expected operating cash flows and cash flows from capital spending
in years 0, 1, 2, and 3 are presented in the...
24. Blue Eagle Banking is considering a project that would last for 3 years and have...24.
Blue Eagle Banking is considering a project that would last for
3 years and have a cost of capital of 11.76 percent. The relevant
level of net working capital for the project is expected to be
20,000 dollars immediately (at year 0); 6,000 dollars in 1 year;
29,000 dollars in 2 years; and 0 dollars in 3 years. Relevant
expected operating cash flows and cash flows from capital spending
in years 0, 1, 2, and 3 are presented in...
You are an owner of Tesco supermarket. You have made feature advertisings for last 3 years....You are an owner of Tesco supermarket. You have made feature
advertisings for last 3 years. You want to know the effectiveness
of this feature advertising on store traffic(numbers of shoppers)
in different week. In data set, you have: average numbers of
shoppers, average numbers of feature advertising, and average price
each week.
With the table bellow has to be done a REGRESSION model
in Excel and interpret the results obtained from the equation based
on the questions.
Hi Price...
You are an owner of Tesco supermarket. You have made feature advertisings for last 3 years....You are an owner of Tesco supermarket. You have made feature
advertisings for last 3 years. You want to know the effectiveness
of this feature advertising on store traffic(numbers of shoppers)
in different week. In data set, you have: average numbers of
shoppers, average numbers of feature advertising, and average price
each week.
Hi Price
Lo Price
Hi Adv
832
1102
625
888
821
1056
605
1407
545
878
701
977
454
999
605
1212
787
905
568
655
Lo...
can you make a balance sheet for 3 years from starting a business ?can
you make a balance sheet for 3 years from starting a business
?
BankMart Inc. recently issued bonds that mature in 8 years. They have a par value of...BankMart Inc. recently issued bonds that mature in 8 years. They
have a par value of $1,000 and an annual coupon of 4%. Your
required rate of return is 10%.
Hint:
This bond pays a fixed amount of coupon at the end of each
period and pays the par value when it matures.
annual coupon payment = par value * annual coupon rate.
What is the maximum price you want to pay for the bond?
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
ADVERTISEMENT
|