Question 2 Tasty Biscuit prepares its financial statements on every 31 December and incurred the following during the year 2019: Jan 21 Mar 13 June 1 Sept 19 Bought an old Van for RM18,000 by cheque. Bought a used Furniture for RM2,000 through bank transfer. Bought another old Van for RM12,000 by cheque. Bought an additional used Furniture for RM3,000 by cheque Additional information: (i) At the beginning 2019, the business decided that a full-year (12-month) depreciation on each of non-current assets regardless of the date of its purchase. All vans and Furniture will be given away for charity purpose to a nearby recycle center owned by the Community Service Center at the end of their respective useful lives. (ii) The non-current assets are to be depreciated as follow: -Van: reducing balance method at 50% per year with useful life of 5 years. - Furniture: straight-line method with useful life of 5 years. Required: (a) Calculate the depreciation at the end of each of FIVE (5) years for the vans and furniture. Note: (i) Present your working only in the table format (ii) Round your answers to nearest RM (b) Prepare the Income Statement (extract) for 2021 and 2022. (c) Prepare the Balance Sheet (extract) for 2021 and 2022.
Question 2 Tasty Biscuit prepares its financial statements on every 31 December and incurred the following during the year 2019: Jan 21 Mar 13 June 1 Sept 19 Bought an old Van for RM18,000 by cheque. Bought a used Furniture for RM2,000 through bank transfer. Bought another old Van for RM12,000 by cheque. Bought an additional used Furniture for RM3,000 by cheque Additional information: (i) At the beginning 2019, the business decided that a full-year (12-month) depreciation on each of non-current assets regardless of the date of its purchase. All vans and Furniture will be given away for charity purpose to a nearby recycle center owned by the Community Service Center at the end of their respective useful lives. (ii) The non-current assets are to be depreciated as follow: -Van: reducing balance method at 50% per year with useful life of 5 years. - Furniture: straight-line method with useful life of 5 years. Required: (a) Calculate the depreciation at the end of each of FIVE (5) years for the vans and furniture. Note: (i) Present your working only in the table format (ii) Round your answers to nearest RM (b) Prepare the Income Statement (extract) for 2021 and 2022. (c) Prepare the Balance Sheet (extract) for 2021 and 2022.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please help me to solve this problem
Transcribed Image Text:Question 2
Tasty Biscuit prepares its financial statements on every 31 December and incurred the following
during the year 2019:
Jan 21
Mar 13
June 1
Sept 19
Bought an old Van for RM18,000 by cheque.
Bought a used Furniture for RM2,000 through bank transfer.
Bought another old Van for RM12,000 by cheque.
Bought an additional used Furniture for RM3,000 by cheque
Additional information:
(i) At the beginning 2019, the business decided that a full-year (12-month) depreciation on
each of non-current assets regardless of the date of its purchase. All vans and Furniture will
be given away for charity purpose to a nearby recycle center owned by the Community
Service Center at the end of their respective useful lives.
(ii) The non-current assets are to be depreciated as follow:
-Van: reducing balance method at 50% per year with useful life of 5 years.
- Furniture: straight-line method with useful life of 5 years.
Required:
(a) Calculate the depreciation at the end of each of FIVE (5) years for the vans and furniture.
Note:
(1) Present your working only in the table format
(ii) Round your answers to nearest RM
(b) Prepare the Income Statement (extract) for 2021 and 2022.
(c) Prepare the Balance Sheet (extract) for 2021 and 2022.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 6 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education