QUESTION 2 Ameera's Statement of Financial Position extract as at 31 December 2020 was given as follows: Date of purchase Non-current Cost (RM) Depreciation rate 1.05.2020 asset Furniture 44,000 10% per annum on straight line method 30.8.2020 Motor vehicle 72,000 20% per annum on reducing balance On 3 January 2021, Ameera purchased a new furniture costing RM 20,000 for cash. You are required to prepare: (a) Furniture and motor vehicle accounts. (2 marks) (b) Depreciation and Accumulated Depreciation accounts of each asset for 2020 and 2021. (6 marks)

QUESTION 2 Ameera's Statement of Financial Position extract as at 31 December 2020 was given as follows: Date of purchase Non-current Cost (RM) Depreciation rate 1.05.2020 asset Furniture 44,000 10% per annum on straight line method 30.8.2020 Motor vehicle 72,000 20% per annum on reducing balance On 3 January 2021, Ameera purchased a new furniture costing RM 20,000 for cash. You are required to prepare: (a) Furniture and motor vehicle accounts. (2 marks) (b) Depreciation and Accumulated Depreciation accounts of each asset for 2020 and 2021. (6 marks)

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 3E: Depreciation Methods Nickle Company purchased three identical assets for 17,000 on January 2, 2019....

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Depreciation Methods Nickle Company purchased three identical assets for 17,000 on January 2, 2019. Each asset has an expected residual value of 1,000. The depreciation expense for 2019 and 2020 is shown below for three assets: Required: 1. Next Level Which depreciation method is the company using for each asset? 2. Compute the depreciation expense for 2021 and 2022 for each asset.
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