1101AFE Accounting Principles Semester 2 2016

Assessable Homework for Chapter 10

Question 1
On the 1st November 2013, Smith Consulting purchased a Dell Computer
for $1800 cash and paid an extra $200 to have it installed. Office
Furniture was also purchased for $4200 for cash. Journalise the purchase
of these assets, calculated the depreciation using the straight line method
from the date of purchase until the end of the financial year end which is
the 30th June, 2014. Both assets are expected to have a useful life of 5
years and will have no residual value. Ignore GST and round to the nearest
dollar.

DATE ACCOUNTS AND EXPLANATIONS DEBIT CREDIT

Question 2.
On 15th March, XYZ Ltd paid $1,300,000 for a lump sum purchase of land,
building and equipment. At the time of acquisition, the land had a market value
of $700,000, the building $560,000 and the equipment $140,000. Journalise the
lump sum purchase of the three assets for a total cost of $1,300,000. The whole
amount for the purchased was finance by a long term mortgage.

DATE ACCOUNTS AND EXPLANATIONS DEBIT CREDIT