a) What is the cost and the carrying value for the assets discussed above as at 30 June 2019? b) Would Club York's profit be higher or lower for the year ending 30 June 2019 if it had adopted the diminishing value method of depreciation? Explain. c) On 1 September 2019, it was found that the lighting system was no longer flashing ultraviolet rays in time with the music (as it should). $900 was spent to have this fixed. On 1 October 2019, $6500 was spent to give the sound system a heavier bass beat. What is the appropriate accounting treatment for the events that occurred on 1 September 2019 and 1 October 2019? Explain.

a) What is the cost and the carrying value for the assets discussed above as at 30 June 2019? b) Would Club York's profit be higher or lower for the year ending 30 June 2019 if it had adopted the diminishing value method of depreciation? Explain. c) On 1 September 2019, it was found that the lighting system was no longer flashing ultraviolet rays in time with the music (as it should). $900 was spent to have this fixed. On 1 October 2019, $6500 was spent to give the sound system a heavier bass beat. What is the appropriate accounting treatment for the events that occurred on 1 September 2019 and 1 October 2019? Explain.

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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