Based on the International Accounting Standards, solve the following exercises: IAS 16. Fixed Assets. We are a graphic arts company, and at the beginning of 2016, we acquired a new printer. The price of this printer was 25,000 euros.

Based on the International Accounting Standards, solve the following exercises: IAS 16. Fixed Assets. We are a graphic arts company, and at the beginning of 2016, we acquired a new printer. The price of this printer was 25,000 euros.

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter4: Balance Sheet: Presenting And Analyzing Resources And Financing

Section: Chapter Questions

Problem 20E

See similar textbooks

Related questions

Q: On January 02, 2009, Atlas Business bought a machine for Rs. 50, 000, on credit terms of 2/10, n/30.…

A: Depreciation is a reduction in the value of assets due to the usage of that asset. We can evaluate…

Q: The Sohar Port Corporation purchased 100 Photocopier machines from a German supplier at the unit…

A: The Sohar Port Corporation prepares its financial statements in OMR This entity is based in the…

Q: (c) Show clearly how the trade payables should be recognised initially and how the subsequent…

A: Entity 2 purchased a specialist machine from a US Supplier on 1st Jan 2021. The price of the machine…

Q: The amount to be capitalized as the cost of the machine is :-

A: The concept in this scenario is the determination of the cost of an asset that a company acquires.…

Q: Chicago Heights company has 2 year contract to construct a warehouse. The contract value is 2949 and…

Q: Epsilon is an entity which prepares financial statements, in accordance with International Financial…

A: Purchase of machine: The cost of purchasing the machine from the foreign supplier (20 million…

Q: On 1 January 2011, Sherry Co. Ltd entered into a GH ¢ 11,000,000 contract for the construction of an…

A: Answer: Expenditures incurred in obtaining a qualifying asset are first allocated to any specific…

Q: Problem #1: The AWIT Corporation is maintaining a branch in Baguio. During the year, the home office…

A: When an organization performs well in a particular area, it may seek to expand itself. This…

Q: Please answer the following questions with complete solution. Thank you so much. I need those 2…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Miracle Manufacturing Company Limited (Miracle) has the following transactions relating to its long…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: On July 1, APPLE purchased a machine worth ₱21,000,000 subject to a 2% cash discount if paid within…

A: Introduction: Balance sheet: All Assets and liabilities are shown in Balance sheet. It tells the net…

Q: You are a manufacturer of auto parts locate in Fort Lauderdale, Florida, USA. You have entered into…

A: Documentary collection is a type of trade finance whereby an exporter receives payment for its goods…

Q: Assume Avaya contracted to provide a customer with Internet infrastructure for $2,200,000. The…

A: Cost allocation is a technique used in accounting and financial management to assign certain cost…

Q: NXS Semiconductor prepares its financial statements according to International Financial Reporting…

Q: Company A decided to build a road. The duration of the project was 4 years and the fee amounts to €…

Q: on 30.11.20X1 the company undertook the maintenance of a customer's machines in exchange for the…

Q: Stelle Technology has a contract to build a network for a customer for a total sales price of €10…

A: Under the percentage of the completion method, the expenses & revenues of long term contracts is…

Q: Epsilon is an entity which prepares financial statements, in accordance with International Financial…

Q: А. Place an "X" in the blank for the following items which you believe should be included in the…

A: As per IFRS 16 property plant and equipment Cost of piece of equipment consists of Its purchase…

Q: A company in the manufacturing sector prepares its account to 31.12 annually. In July 2020, the…

A: A company in the manufacturing sector prepares its account to 31.12 annually. In July 2020, the…

Q: Pls answer this question with solutions. A manufacturer gives warranties at the time of sale to…

A: Solution Warranty expenses is the cost that business expects to or has already incurred for the…

Q: On 31/12 / 20Χ0 the company V Corporation acquired a machine on credit. For the repayment, the…

A: Lets understand the basics. When entity purchase asset for credit and it is not in the usual term…

Q: Banco Company acquired a new machine on a delayed payment basis on August 1, 2018. A down payment of…

A: A cost is the worth of money that has been used up to create something or supply a service and is…

Q: The company purchased a piece of Equipment on 12/1/2023 for use in its business operations. The…

A: The loan is taken by the entity when it needs money. The entity can take a loan which can be repaid…

Q: Equipment with a cost of R500 000 is purchased and R200 000 is paid immediately on 1 January 2016.…

A: As per IAS 16 Fixed asset purchased is to be measured cost of purchase and other costs that are…

Q: Obra Ltd is your client. It has adopted IFRS as the financial reporting…

A: Calculation of Total cost of machinery after adjustment in purchase price is as follows. Trade…

Question

1)Based on the International Accounting Standards, solve the following exercises: IAS 16. Fixed Assets. We are a graphic arts company, and at the beginning of 2016, we acquired a new printer. The price of this printer was 25,000 euros. The additional expenses of the purchase were as follows: Installation and assembly: 3.000 euros. Transportation and delivery: 1.150 euros. All operations have a 21% VAT (not included), and the payment of the amounts is made by bank check. During January, the assembly and installation of the new printer takes place, which is in perfect working condition from February the 1st. The useful life expectancy of the printer is estimated at 10 years, and its amortisation will be carried out following the linear method. Additionally, at the end of its useful life, the company will have to face the costs of dismantling and rehabilitation of the place. Estimating said costs in 5,000 euros. Besides, said machinery requires specialised weekly maintenance, amounting to 250 euros per month. Calculate: The initial cost of the acquisition. The amortization fees. The costs derived from daily maintenance.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction:

VIEW

Step 2: Calculate the initial cost of the acquisition:

VIEW

Step 3: Calculate the amortization fees:

VIEW

Step 4: Calculate the costs derived from daily maintenance:

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 5 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

a) Epsilon is an entity which prepares financial statements, in accordance with International Financial Reporting Standards (IFRS), to 30 September each year. On 1 April 2018, Epsilon accepted delivery of a large and complex machine from a supplier. The agreed purchase price for the machine was £2 million. Epsilon received 10% trade discount. On 1 April 2018, Epsilon incurred direct costs of £50,000 in handling the machine and £25,000 in installing the machine at its premises. Although the machine was ready for use from 1 April 2018, Epsilon did not bring the machine into use until 30 April 2018. During April 2018 Epsilon incurred costs of £200,000 in training relevant staff to use the machine. The directors of Epsilon estimate that the machine is capable of being usefully employed in the business until 31 March 2023, and that it will have no residual value at that date. Epsilon uses the straight-line method for calculating the depreciation. On 31 March 2023, Epsilon will be legally…
what are the answers for 66 to 70?
4 - Our company has purchased a machine for 600.000 TL excluding 18% VAT. He paid 47.200 TL, including 18% VAT, for the assembly of the machine in question. Which of the following accounts is correct to use in the relevant accounting record ? a) 253 Plant Machinery and Equipment Hs. 600.000 TL (Borrower) B) 191 VAT Deductible 115.200 TL (Creditor) NS) 391 Calculated VAT Hs. 72.000 TL (Borrower) D) 253 Plant Machinery and Equipment Hs. 640.000 TL (Borrower) TO) 253 Plant Machinery and Equipment Hs. 755,200 TL (Borrower)
Hi kindly answer the questions in the attached file. Thank you :)
On 1 January 2011, Sherry Co. Ltd entered into a GH ¢ 11,000,000 contract for theconstruction of an office complex in Kumasi. The building was completed at the end ofDecember 2011. During the period, the following payments were made to thhecontractor:Payment date Amount (GH ¢’000)1 January 2011 1,00031 March 2011 3,00030 September 2011 6,00031 December 2011 1,00011,000Sherry’s borrowings as at its year end of 31 December 2011 were as follows: 10% 4-year Loan Note with simple interest payable annually, which relatesspecifically to the building project; debts outstanding at 31 December 2011amounted to GH ¢ 3,500,000. Interest of GH ¢ 350,000 was incurred on theseborrowings during the year, and interest income of GH ¢ 100,000 was earned onthese funds while they were held in anticipation of payments. 12.5% Five-year Loan Note with simple interest payable annually; debt outstandingat 1 January 2011 amounted to GH ¢ 5,000,000 and remained unchanged during theyear 10% Five year Loan Note…
Vai
The company purchased a piece of Equipment on 12/1/2023 for use in its business operations. The company financed this purchase 100% and began using the Equipment immediately. The details of the loan are below: Amount $100,000.00 Interest rate 8% Loan period (months) 24 Payment amount $4, 522.73 Start Date 12/1/23 1. explain why an amortization schedule is important and create one 2. Create the journal entry required to initially record this loan. 3. Create any adjusting entries needed at 12/31/2023. 4. Create the journal entry to record the first payment (assume a 1/1/2024 due date)
Show the solution in good accounting form. Thank you! 1. How much should be shown in FIVE's 2021 income statement as gross rental income? a. ₱ 60,000 b. ₱ - 0 - c. ₱ 6,000 d. ₱ 30,000
The Sohar Port Corporation purchased 100 Photocopier machines from a German supplier at the unit price of EUR 5,000 on November 25, 2020. The cost of equipment is EUR 3,500 per unit. According to the Purchase Agreement, payment was due on February 25, 2021. Sohar Port Corporation paid the debt in full on the settlement date. Sohar Port Corporation is a legal entity based in the Sultanate of Oman and prepares its Financial statements in OMR for the financial year ending on December 31. The information on spot exchange rates is given below: Date Exchange rate Transaction date November 25, 2020 EUR 1 = OMR 0.417 Balance sheet date December 31, 2020 EUR 1 = OMR 0.470 Settlement date February 25, 2021 EUR 1 = OMR 0.451 Required: A. Journalize the purchase of the equipment and the payment. B. Calculate and analyze the overall effect of the changes in the foreign currency exchange rates on this transaction.
Pls answer this question with solutions. A manufacturer gives warranties at the time of sale to purchasers of its product. Under the terms of the contract of sale, the manufacturer undertakes to make good, by repair or replacement, manufacturing defects that become apparent within one year from the date of sale. On the basis of experience, it is probable (i.e., more likely than not) that there will be some claims under the warranties. Sales of ₱40 million were made evenly throughout 20X1. At December 31, 20x1 the expenditures for warranty repairs and replacements for the product sold in 20x1 are expected to be made 50% in 20x1 and 50% in 20x2. Assume for simplicity that all the 20x2 outflows of economic benefits related to the warranty repairs and replacements take place on June 30, 20x2. Experience indicates that 95% of products sold require no warranty repairs; 3% of products sold require minor repairs costing 10% of the sale price; and 2% of products sold require major…
А. Place an "X" in the blank for the following items which you believe should be included in the cost of a piece of equipment? 1. Purchase price 2. Sales tax 3. Electricity to run the equipment 4. Installation cost 5. Insurance while being transported 6. Insurance while in use 7. Freight charges В. Your company signed a contract to construct a new building so you borrowed $600,000 on February 1, 2021 and issued a three-year, 6% note which pays interest annually. You spent $200,000 for construction on April 1, 2021 and an additional $300,000 on November 1. How much interest should be capitalized in 2021? Please show your calculations. С. Your company spent $30,000 for repairs and modifications to significantly increase the life of your equipment. What entry should be made for the $30,000? D. You bought equipment on January 1, 2018, for $62,000. The equipment has an estimated life of 8 years and an estimated salvage value of $6,000. Your company uses the straight- line method of…
You are a manufacturer of auto parts locate in Fort Lauderdale, Florida, USA. You have entered into an international sales contract to sell a shipment of parts to a purchaser in São Paulo, Brazil. You have extended credit to the importer using a D/A documentary collection. Terms: Delivery: CIF Santos, Brazil (INCOTERMS 2010) Time of Payment: Sixty days from the date documents are stamped “Shipped on board” Draft Amount: $2,175,000.00 Remitting Bank: Bank of America - Fort Lauderdale, Florida, USA Collecting Bank: Banco do Brazil - São Paulo, Brazil What could you do to get paid sooner than sixty days?