December 2022 Fraser Ltd's statement of financial positi motor vehicles at a cost price of $400 000 less accumulated dep $100 000. Fraser Ltd uses the cost model to value its assets. On December 2022 an estimate is made that the recoverable amour vehicles is $270 000. Under AASB 136, Impairment of Assets, the accounting entry to record the write down of the motor vehicles recoverable amount is which of the following?

December 2022 Fraser Ltd's statement of financial positi motor vehicles at a cost price of $400 000 less accumulated dep $100 000. Fraser Ltd uses the cost model to value its assets. On December 2022 an estimate is made that the recoverable amour vehicles is $270 000. Under AASB 136, Impairment of Assets, the accounting entry to record the write down of the motor vehicles recoverable amount is which of the following?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The following data relate to store equipment of ABC Company for 2021:· Store Equipment at cost, Jan. 1- P100,000 · Store Equipment at cost, Dec. 31- P105,000· Accumulated Depreciation, Jan. 1- P30,000· Accumulated Depreciation, Dec. 31- 35,000Store Equipment costing P10,000 was sold for P8,000 resulting in a loss of P500. The depreciation expense on store equipment for 2021 is
2. Lepat Trading prepared its account on 30 June every year. On 30 June 2019, the statement of financial position of Lepat Trading showed the folowing. edn Statement of Financial Position as at 30 June 2019 RM od scconure te RM Non-Current Asset Machinery Accumulated 100,000 स depreciation bek as to new ed ol OMO n ur 160,000 80,000 Motor vehicles Accumulated 96,000 depreciation 300 000 64,000 During the worth RM60,000 were purchased by cheques. The machinery was depreciated at 10% year ended 30 June 2020, machinery worth RM20,000 and motor vehicles
Company B's December 31 Year-End Balance Sheet reveals the following: • December 31, 2020 net PPE of $865 • December 31, 2020 Accumulated Depreciation of $250 • December 31, 2021 net PPE of $770 • December 31, 2021 Accumulated Depreciation of $230 • Annual 2021 Depreciation Expense was $100 • During 2021, PPE was purchased for $560; all PPE purchases are made in cash. • During 2021, the gain of the sale of PPE was $20 What is the journal entry Company B recorded to recognize 2021 depreciation expense? Dr. Accumulated Depreciation $20 Cr. Depreciation Expense $20 Dr. Depreciation Expense $100 Cr. Accumulated Depreciation $100 Dr. Depreciation Expense $20 Cr. Accumulated Depreciation $20 Dr. Depreciation Expense $100 Cr. PPE $100
I need to know how to calculate the gain on the equipment sold in part C The balance sheets of HiROE Inc. showed the following at December 31, 2020 and 2019: December 31, 2020 December 31, 2019 Equipment, less accumulated depreciation of $212,625 at December 31, 2020, and $151,875 at December 31, 2019. $ 273,375 $ 334,125 Required: If there have not been any purchases, sales, or other transactions affecting this equipment account since the equipment was first acquired, what is the amount of the depreciation expense for 2020? Assume the same facts as in part a, and assume that the estimated useful life of the equipment to HiROE Inc., is eight years and that there is no estimated salvage value. Determine: What the original cost of the equipment was. What depreciation method is apparently being used. When the equipment was acquired. Assume that this equipment account represents the cost of 5 identical machines. Prepare the horizontal model and record the journal…
On 01 March 2021 , old equipment with a useful life of six years was sold for R3000 cash . The cost price of equipment sold was R12000 and the accumulated depreciation on it amounted to R10000 on 01 March 2021 Depreciation is calculated using the straight line method. Depreciation on the remaining amounted to R48000 on 28 February 1. Prepare the asset disposal account in the general ledger. Close off the account . 2. Calculate the balance in accumulated depreciation for equipment account as at 28 February 2022. 3. calculate The profit or loss on the disposal, if the equipment was sold 28 February 2022
The information provided to you is as follows: Purchase of machinery (!/9/2019) instead of € 32,400 with cash was registered as a purchase of different materials of equal value. The result of the error was to calculate and recognize the consumption of the various materials (theentire amount of the various materials) and not to calculate the depreciation of the machines (annual depreciation 3.240 €). Correction of accounting error is carried out 1/1/2020. The correction record is requested a) if the error was found in the fiscal year (2020) and b) if the error was found in the next financial year (2021) i.e. the error while the correction entry was made in 2020 takes place on 1/1/2021.
Shamrock Inc. owns equipment that cost $605,000 and has accumulated depreciation of $157,000. The expected future net cash flows from the use of the asset are expected to be $400,000. The fair value of the equipment is $346,000. Prepare the journal entry, if any, to record the impairment loss. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit
Swifty Industries presents you with the following information.Complete the table for the year ended December 31, 2022. The company depreciates all assets using the half-year convention. (Round answers to 0 decimal places, e.g. 45,892.) Description DatePurchased Cost SalvageValue Lifein Years DepreciationMethod AccumulatedDepreciation to12/31/21 Depreciationfor 2022 Machine A 2/12/20 $146,800 $17,000 10 SYD $34,220 $20060 Machine B 8/15/19 81370 21,630 5 SL 29,870 11948 Machine C 7/21/18 67,200 23,500 8 DDB (A) (B) Machine D (C) 225,570 71,070 5 SYD 72,100 (D)
Windsor Company owns equipment that cost $972,000 and has accumulated depreciation of $410,400. The expected future net cash flows from the use of the asset are expected to be $540,000. The fair value of the equipment is $432,000.Prepare the journal entry, if any, to record the impairment loss. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount
At December 31, 2025, Blue Corporation reported the following plant assets. Land Buildings Less: Accumulated depreciation-buildings Equipment Less: Accumulated depreciation-equipment Total plant assets During 2026, the following selected cash transactions occurred. Apr. May June Date 1 Purchased land for $3,335,200. 1 Sold equipment that cost $909,600 when purchased on January 1, 2019. The equipment was sold for $257,720. 1 Sold land for $2,425,600. The land cost $1,516,000. July 1 Purchased equipment for $1,667,600. Dec. 31 Retired equipment that cost $1,061,200 when purchased on December 31, 2016. No salvage value was received. April 1 $26,520,000 11,934,000 60,640,000 7,580,000 May 1 Journalize the transactions. (Hint: You may wish to set up T-accounts, post beginning balances, and then post 2026 transactions.) Blue uses straight-line depreciation for buildings and equipment. The buildings are estimated to have a 40-year useful life and no salvage value; the equipment is estimated…
The following balances appeared in the books of Santiago Traders on 1 March 2020:Land and Buildings900 000Vehicles250 000Machinery200 000Accumulated Depreciation on Vehicles?Accumulated Depreciation on Machinery?Additional information:• A new building was purchased for cash on the 1st September 2020 for R1 000 000.• The vehicles balance at 1 March 2020 consists of two vehicles. Vehicle A with a cost price of R120 000 was sold on the 31st October 2020 on credit to Miss Smith for R60 000. The vehicle was purchased on the 31 May 2018. Vehicle B was purchased on the 1 March 2019.• Purchased a new delivery vehicle (Vehicle C) for R345 000 on credit from N&N Motors on 1 December 2020• All machinery was purchased on the 30 April 2017• The depreciation policy on non-current assets are as follows:o Vehicles: 20% on cost using the straight-line method and no residual valueo Machinery: 10% per annum using the diminishing balance method and no residual value• IGNORE VAT• Santiago Traders has a…
Equipment acquired on January 1, 2014, is sold on June 30, 2018, for $11,200. The equipment cost $46,500, had an estimated residual value of $6,400, and an estimated useful life of 5 years. The company prepares financial statements on December 31, and the equipment has been depreciated using the straight-line method. On June 30, 2018, the company should record Depreciation Expense of: O A. $0. O B. $8,020. C. $4,650. O D. $2,005.