4. Below are the machinery bought buy Budweiser using cheque from year 2018 to 2020. Date of Purchase Cost (RM) 1 January 2018 1 March 2018 Machine AA 20,000 50,000 Machine BB Machine DD 1 November 2018 10,000 Machine EE 1 May 2020 8,000 Depreciation is over ten years, using the straight line method at annual depreciation rate of 8%. Depreciation policy states that full depreciation is made on non-current assets owned for more than six months in a financial year. Required: Prepare: (a) The journal entries for the above transaction (b) The Machinery Account (c) The Depreciation Account

4. Below are the machinery bought buy Budweiser using cheque from year 2018 to 2020. Date of Purchase Cost (RM) 1 January 2018 1 March 2018 Machine AA 20,000 50,000 Machine BB Machine DD 1 November 2018 10,000 Machine EE 1 May 2020 8,000 Depreciation is over ten years, using the straight line method at annual depreciation rate of 8%. Depreciation policy states that full depreciation is made on non-current assets owned for more than six months in a financial year. Required: Prepare: (a) The journal entries for the above transaction (b) The Machinery Account (c) The Depreciation Account

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.

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4. Below are the machinery bought buy Budweiser using cheque from year 2018 to 2020.
Date of Purchase
Cost (RM)
Machine AA
1 January 2018
20,000
Machine BB
1 March 2018
50,000
Machine DD
1 November 2018
10,000
Machine EE
1 May 2020
8,000
Depreciation is over ten years, using the straight line method at annual depreciation rate
of 8%. Depreciation policy states that full depreciation is made on non-current assets
owned for more than six months in a financial year.
Required:
Prepare:
(a) The journal entries for the above transaction
(b) The Machinery Account
(c) The Depreciation Account
(d) The provision for Depreciation Account

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