Professional Documents
Culture Documents
Cottages
31-Aug-16 Dep'n expense - cottages 1,080 Cost - Salvage = depreciable cost
Acc. Dep'n cottages 1,080 120000-(10%*120000)=108,000
3 mth dep'n :
4320*3/12
3 mth dep'n :
1440*3/12
Balance sheet
Current assets
Cash 19,600
Accounts receivable 800
Prepaid Insurance 3,375
Supplies 450
Total current assets 24,225
Current liabilities
Accounts payable 4,500
Salaries payable 375
Advanced rent revenue 800
5,675
Shareholder's equity
Common stock 100,000
Retained earnings 13,110
Total shareholder's equity 113,110
Units sold 57
Units left 13 ending inventory
FIFO
9-Oct 10 15 150
6-Mar 3 12 36
ending inventory 186
LIFO
4-Feb 13 10 130
AVCO
AVCO cost per unit $ 11.29 (COGAFS/units available for sale) 790/70
-
Dr Cr
250
250
170
170
700
700
160
160
140
140
Part b)
10,240-1,600 8,640
Entry:
Dr: Bad debt expense 8,640
Cr: Allowance for doubtful accounts
Part c)
10,240+1,600 11,840
Entry:
Dr: Bad debt expense 11,840
Cr: Allowance for doubtful accounts
Part d)
Dr: Allowance for doubtful accounts 3,200
Cr: Accounts receivable
Part e)
Dr: Accounts receivable 2,500
Cr: Allowance for doubtful accounts
8,640
11,840
3,200
2,500
2,500
1 a)
Machine 2
NBV beg of year rate Dep'n Acc dep'n NBV end of year
2014 30000 20% 6000 6000 24000
2015 24000 20% 4800 10800 19200
2016 19200 20% 2240 13040 16960 7/12 of the dep'n for the ye
1 b)
Machine 1
NBV beg of year rate Dep'n Acc dep'n NBV end of year
2014 20000 20% 4000 4000 16000
2015 16000 20% 3200 7200 12800
2016 12800 20% 2560 9760 10240
Part A2
Cost $ 350,000
Useful life in units 1,000,000
Depreciable cost per unit 350,000/1,000000 $ 0.35
Units in first month 23,500
Depreciation cost first month 23,500*0.35 8225
Part A3
Accumulated Dep'n 15,000
Cash 24,000
Machinery 36,000
Gain on disposal 3,000 *the gain is the balancing figure
7/12 of the dep'n for the year
ncing figure