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ABC Ltd started business on January I 2014, and its financial year end on December 31 each year. It had th following Machinery as at December, 2018. 2014 January 1, bought one machine costing 2015 June 30, bought one machine costing 2015 October 1, bought two machines costing 2 2017 April 1, bought one machine costing 2018 March I bought two machines 13,000 78,000 10,400 cach 52,000 11,700 each The company's policy is to depreciate assets at a rate of 15% per annum using straight line method on a one month ownership basis. Required: prepare the following: a Statement of depreciation accounts; b. Machine account; and e Provision for depreciation account.

ABC Ltd started business on January I 2014, and its financial year end on December 31 each year. It had th following Machinery as at December, 2018. 2014 January 1, bought one machine costing 2015 June 30, bought one machine costing 2015 October 1, bought two machines costing 2 2017 April 1, bought one machine costing 2018 March I bought two machines 13,000 78,000 10,400 cach 52,000 11,700 each The company's policy is to depreciate assets at a rate of 15% per annum using straight line method on a one month ownership basis. Required: prepare the following: a Statement of depreciation accounts; b. Machine account; and e Provision for depreciation account.

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter12: Intangibles
Section: Chapter Questions
Problem 10GI: How does a company record a patent worth 100,000 if: (a) it has just purchased it for 90,000? (b)...
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Question I ABC Ltd started business on January 1 2014, and its financial year end on December 31 each year. It had th following Machinery as at December, 2018. 2014 January 1, bought one machine costing 2015 June 30, bought one machine costing 2015 October 1, bought two machines coting 2 2017 April 1, bought one machine costing 2018 March I bought two machines 13,000 78,000 10,400 each 52,000 11,700 cach The compuny's policy is to depreciate assets at a rate of 15% per annum using straight line method on a one month ownership basis. Required: prepure the following: a. Statement of depreciation accounts; b. Machine account; and e Provision for depreciation account.
Transcribed Image Text:Question I ABC Ltd started business on January 1 2014, and its financial year end on December 31 each year. It had th following Machinery as at December, 2018. 2014 January 1, bought one machine costing 2015 June 30, bought one machine costing 2015 October 1, bought two machines coting 2 2017 April 1, bought one machine costing 2018 March I bought two machines 13,000 78,000 10,400 each 52,000 11,700 cach The compuny's policy is to depreciate assets at a rate of 15% per annum using straight line method on a one month ownership basis. Required: prepure the following: a. Statement of depreciation accounts; b. Machine account; and e Provision for depreciation account.
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