Alis keen to expand the business operations of Shortcuts to Food by including a home delivery service for individual customers. To makethis possible Al has identified an old refrigerated van that will be suitable after some repairs are completed.Al has provided the following breakdown of cost for the van.Refrigerated VanRequired Stamp Duty and On road costsInstallation of a GPS/Map unitAl has deemed this installation as optional because he could use his phone but it would be helpful to have the system build in.Repairs required to the refrigeration unito These repairs are essential to enable it to keep food at the correct temperature for delivery.$ 14,000S 1,300S 2,500S 6,300New tyreso The van will not be able to be driven legally until the tyres are replaced. As Al intends to keep the van for 4 years at least onenew set of tyres will need to be purchased during that period.880REQUIRED:1. Prepare the General Journal entries required to account for the acquisition of the refrigerated van on 1 July 2020Ena is responsible for updating the depreciation each year and has asked for your help on three particular items to make sure she does itcorrectly. The three items areSaLand with a cost of $31,824A new piece of equipment purchased on October 1 at a cost of S32,000 and Ena believes will be able to be sold for $12,000 after 5 years.Their old van which cost $39,800 and has accumulated depreciation of $13,520. After another 3 years of use Ena plans on selling the van for$15,000.apEna normally depreciates assets using the straight-line method over 10 years but wants to use a reducing balance rate of 20% on theequipment and the old van.SanPapeREQUIRED:2. Prepare the General Journal entries required to account for depreciation up until June 30, 2020 for the items above.

A Van shall be measured at cost plus installation charges plus any costs incurred that are necessary…

Al is keen to expand the business operations of Shortcuts to Food by including a home delivery service for individual customers. To make chis possible Al has identified an old refrigerated van that will be suitable after some repairs are completed. Al has provided the following breakdown of cost for the van. • Refrigerated Van Required Stamp Duty and On road costs Installation of a GPS/Map unit o Al has deemed this installation as optional because he could use his phone but it would be helpful to have the system build in. Repairs required to the refrigeration unit $ 14,000 $1,300 S 2,500 $ 6,300 These repairs are essential to enable it to keep food at the correct temperature for delivery. New tyres 880 The van will not be able to be driven legally until the tyres are replaced. As Al intends to keep the van for 4 years at least one new set of tyres will need to be purchased during that period.

Al is keen to expand the business operations of Shortcuts to Food by including a home delivery service for individual customers. To make chis possible Al has identified an old refrigerated van that will be suitable after some repairs are completed. Al has provided the following breakdown of cost for the van. • Refrigerated Van Required Stamp Duty and On road costs Installation of a GPS/Map unit o Al has deemed this installation as optional because he could use his phone but it would be helpful to have the system build in. Repairs required to the refrigeration unit $ 14,000 $1,300 S 2,500 $ 6,300 These repairs are essential to enable it to keep food at the correct temperature for delivery. New tyres 880 The van will not be able to be driven legally until the tyres are replaced. As Al intends to keep the van for 4 years at least one new set of tyres will need to be purchased during that period.

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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