Please solve the question in the image below Q4: China Beijing Salon purchased new furniture for its store on April 1, 2001. The furniture isexpected to have a 5-year life and no residual value. The following expenditures were associated withthe purchase:Cost of the furniture.Freight chargesSales taxes.Rs. 10,000350600Installation of furniture50500Cost to repair furniture damaged during installationInstructionsDetermine the cost of the asset to be capitalized. Provide justification.b. Prepare Depreciation Schedule under each depreciation method listed below:1. Straight-line, with fractional years rounded to the nearest whole month.2. 200% declining-balance, using the half-year convention.c. Prepare journal entry assuming furniture was disposed of at Rs. 20,000 at the end of usefullife.

Introduction The cost of assets which should be capitalized includes all the expenses incurred on…

Q4: China Beijing Salon purchased new furniture for its store on April 1, 2001. The furniture is expected to have a 5-year life and no residual value. The following expenditures were associated with the purchase: Cost of the furniture.. Freight charges.. Sales taxes. Installation of furniture Cost to repair furniture damaged during installation Rs. 10,000 350 600 50 500 .......* ......... . Instructions a. Determine the cost of the asset to be capitalized. Provide justification. b. Prepare Depreciation Schedule under each depreciation method listed below: 1. Straight-line, with fractional years rounded to the nearest whole month. 2. 200% declining-balance, using the half-year convention. c. Prepare journal entry assuming furniture was disposed of at Rs. 20,000 at the end of useful life.

Q4: China Beijing Salon purchased new furniture for its store on April 1, 2001. The furniture is expected to have a 5-year life and no residual value. The following expenditures were associated with the purchase: Cost of the furniture.. Freight charges.. Sales taxes. Installation of furniture Cost to repair furniture damaged during installation Rs. 10,000 350 600 50 500 .......* ......... . Instructions a. Determine the cost of the asset to be capitalized. Provide justification. b. Prepare Depreciation Schedule under each depreciation method listed below: 1. Straight-line, with fractional years rounded to the nearest whole month. 2. 200% declining-balance, using the half-year convention. c. Prepare journal entry assuming furniture was disposed of at Rs. 20,000 at the end of useful life.

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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