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Question 1. i. Calculate the yearly depreciation for a machine that has an expected useful life of 10 years. The machine cost RM136,500. The cost to ship the machine was RM1,250 Installer charge RM2,250 to install the machine. The company expect the machine to have a salvage value is RM5,000 at the end of the useful life and company decide to use the straight-line method to depreciate the machine.

Question 1. i. Calculate the yearly depreciation for a machine that has an expected useful life of 10 years. The machine cost RM136,500. The cost to ship the machine was RM1,250 Installer charge RM2,250 to install the machine. The company expect the machine to have a salvage value is RM5,000 at the end of the useful life and company decide to use the straight-line method to depreciate the machine.

FINANCIAL ACCOUNTING
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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Question 1. i. Calculate the yearly depreciation for a machine that has an expected useful life of 10 years. The machine cost RM136,500. The cost to ship the machine was RM1,250. Installer charge RM2,250 to install the machine. The company expect the machine to have a salvage value is RM5,000 at the end of the useful life and company decide to use the straight-line method to depreciate the machine. ii. Prepare a journal entry to record the above depreciation in Year 1. Question 2 i. Construct a depreciation schedule using the straight line method for a new excavator that costs RM360,000 and has a salvage value of RM10, 000 at the end of 7 years. ii. Determine the Book Value of the excavator at the end of year 4. ii. Prepare a journal entry to record the above depreciation in Year 5.
Transcribed Image Text:Question 1. i. Calculate the yearly depreciation for a machine that has an expected useful life of 10 years. The machine cost RM136,500. The cost to ship the machine was RM1,250. Installer charge RM2,250 to install the machine. The company expect the machine to have a salvage value is RM5,000 at the end of the useful life and company decide to use the straight-line method to depreciate the machine. ii. Prepare a journal entry to record the above depreciation in Year 1. Question 2 i. Construct a depreciation schedule using the straight line method for a new excavator that costs RM360,000 and has a salvage value of RM10, 000 at the end of 7 years. ii. Determine the Book Value of the excavator at the end of year 4. ii. Prepare a journal entry to record the above depreciation in Year 5.
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