Question

In: Accounting

On 30 June 2018, an item of machinery had a carrying amount of $300,000 (current depreciation...

On 30 June 2018, an item of machinery had a carrying amount of $300,000 (current depreciation for the year has been provided). The machinery’s cost at acquisition was $500,000 at which time its estimated useful life was 10 years with no residual value. On 30 June 2018, the same item of machinery was assessed as having a recoverable amount of $240,000 with a remaining useful life of 6 years.

On 30 June 2022, the machinery was assessed as having a recoverable amount of $110,000 and a remaining useful life of 2 years.

All machinery is carried under the cost model.

On 30 June 2022, the entity should recognise:

Solutions

Expert Solution

please leave a comment for further query on this problem.

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

On October 30, 2018, Rashid Company Factored receivables with a carrying amount of $300000 to Mohammed...
On October 30, 2018, Rashid Company Factored receivables with a carrying amount of $300000 to Mohammed company. Mohammed company assesses a finance charge of 4% of the receivable and retains 6% of the receivables. Relative to this transaction you are to determine the amount of loss on the sale to be reported in the income statement of Rashid Company for February A. Assume that Rashid factors the receivable on a without recourse basis. The journal entry is B. Assume that...
On June 30, 2018, Singleton Computers issued 8% stated rate bonds with a face amount of...
On June 30, 2018, Singleton Computers issued 8% stated rate bonds with a face amount of $200 million. The bonds mature on June 30, 2033 (15 years). The market rate of interest for similar bond issues was 7% (3.5% semiannual rate). Interest is paid semiannually (4.0%) on June 30 and December 31, beginning on December 31, 2018. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from...
On June 30, 2018, Singleton Computers issued 5% stated rate bonds with a face amount of...
On June 30, 2018, Singleton Computers issued 5% stated rate bonds with a face amount of $320 million. The bonds mature on June 30, 2033 (15 years). The market rate of interest for similar bond issues was 4% (2.0% semiannual rate). Interest is paid semiannually (2.5%) on June 30 and December 31, beginning on December 31, 2018. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from...
On June 30, 2018, Singleton Computers issued 6% stated rate bonds with a face amount of...
On June 30, 2018, Singleton Computers issued 6% stated rate bonds with a face amount of $200 million. The bonds mature on June 30, 2033 (15 years). The market rate of interest for similar bond issues was 5% (2.5% semiannual rate). Interest is paid semiannually (3%) on June 30 and December 31, beginning on December 31, 2018. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from...
On June 30, 2018, Rundle Company’s total current assets were $500,500 and its total current liabilities...
On June 30, 2018, Rundle Company’s total current assets were $500,500 and its total current liabilities were $272,500. On July 1, 2018, Rundle issued a short-term note to a bank for $40,400 cash. Required Compute Rundle’s working capital before and after issuing the note. Compute Rundle’s current ratio before and after issuing the note. (Round your answers to 2 decimal places.) Before the transaction After the transaction a. Working Capital b. Current Ratio On June 30, 2018, Vernon Company’s total...
On June 30, 2018, the High Five Surfboard Company had outstanding accounts receivable of $750,000. On...
On June 30, 2018, the High Five Surfboard Company had outstanding accounts receivable of $750,000. On July 1, 2018, the company borrowed $600,000 from the Equitable Finance Corporation and signed a promissory note. Interest at 10% is payable monthly. The company assigned specific receivables totaling $750,000 as collateral for the loan. Equitable Finance charges a finance fee equal to 1.8% of the accounts receivable assigned. Required: Prepare the journal entry to record the borrowing on the books of High Five...
On 30 June 2018, the Statement of Financial Position of Emerald Ltd showed the following non-current...
On 30 June 2018, the Statement of Financial Position of Emerald Ltd showed the following non-current asset after charging depreciation: Plant 400,000 Accumulated Depreciation (150,000) 250,000 As of 30 June 2018, the company decided to adopt the revaluation model for the plant. Therefore, on 30 June 2018, an independent valuer assessed the fair value of the plant to be $280,000 with a remaining useful life of 7 years. On 30 June 2019, the plant was revalued again to its fair...
On 30 June 2018, the Statement of Financial Position of Emerald Ltd showed the following non-current...
On 30 June 2018, the Statement of Financial Position of Emerald Ltd showed the following non-current asset after charging depreciation: Plant 400,000 Accumulated Depreciation (150,000) 250,000 As of 30 June 2018, the company decided to adopt the revaluation model for the plant. Therefore, on 30 June 2018, an independent valuer assessed the fair value of the plant to be $280,000 with a remaining useful life of 7 years. On 30 June 2019, the plant was revalued again to its fair...
Donald’s Juice Shop had the following balances in its ledger at 30 June 2020. Account Amount...
Donald’s Juice Shop had the following balances in its ledger at 30 June 2020. Account Amount ($) Cash at Bank $48 724 Accounts Receivable $2 05 056 Inventory $2 91 200 Prepaid Insurance $15 744 Office Supplies on Hand $8 736 Furniture & Fixtures $1 06 080 Accumulated Depreciation – Furniture & Fittings $29 120 Delivery Equipment $1 24 800 Accumulated Depreciation – Delivery Equipment $49 920 Accounts Payable $72 072 Loan Payable $3 12 000 Donald, Capital $1 32...
Sefam Ltd owns an item of plant which has a carrying amount of Rs. 2,480,000 as...
Sefam Ltd owns an item of plant which has a carrying amount of Rs. 2,480,000 as at 1 April 2014. It is being depreciated at 12½% per annum on a reducing balance basis. The plant is used to manufacture a line of fabric which has been suffering a slow decline in sales. Sefam has estimated that the plant will be retired from use on 31 March 2018. The estimated net cash flows from the use of the plant and their...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT