Southern Chemical Sdn Bhd (SC) is pharmaceutical manufacturer, it has thefollowing assets:a) SC has the following items in its office:RMPrinterOffice desk (10 units)Office chair (10 units)Movable partitionNon-movable partition4,0005,0003,0005,50012,300The printer was recorded as an expense in the statement of profit or loss, theother items were recorded in PPE.b) SC leased a tablet counting machine at a yearly lease of RM 15,000 for threeyears (cost of machine RM 45,000) and it incurred expenditure amounting toRM 4,500 in preparing and leveling land to prepare a site for the installationof the tablet counting machine.c) SC constructed 2 buildings within the area of its manufacturing plant asfollows:(i) A building for the living accommodation of the factory workers(ii) A building which houses the officeRequired:Discuss the tax treatment for each type of the above according to Schedule 3 ofIncome Tax Act 1967 (Capital Allowances and Charges), NO computation of capitalallowance is required.

Depreciation expense: Depreciation expense is the reduction in the particular asset due to its use…

Answered: Southern Chemical Sdn Bhd (SC) is…

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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ABC Ltd. incurred the following costs while manufacturing its product. Property taxes on store 7500 Advertising expense 45000 Delivery expense 21000 Sales commissions 35000 Salaries paid to sales clerks 50000 Sales revenue 445000 Sales Discount 15000 COGS 337900 Work in process inventory was 12000 at January 1 and 15500 at December 31. Finished goods inventory was 60000 at January 1 and 45600 at December 31. Compute gross profit.Single line text.
Sandhill Co. had the following two transactions related to its delivery truck. 1. Paid $55 for an oil change. 2. Paid $447 to install special shelving units, which increase the operating efficiency of the truck. Prepare Sandhill Co.’s journal entries to record these two transactions.
Kindly provide the following requirements.
On August 15, MJC Company purchased new equipment for $91,500 by paying cash. Other costs associated with the equipment were: transportation costs, $2,100; sales tax paid, $7,500; and installation cost, $4,800. At what amount will the equipment be recorded on a balance sheet? Multiple Choice $105,900. $98,400. $99,000. $93,600.
Adam and David are two entrepreneurs who agreed to form a corporation ("A&D") to operate a car repair shop in the Boston region. They began business on January 1, 2021 with the following transactions occurred during the month of January. Prepare journal entries, T-accounts, and a balance sheet as of January 31, 2021 for A&D. Organize your T-accounts by following the order of assets, liabilities, equity, revenues, and expenses. Each T-account should start with a beginning balance and end with an ending balance for each reporting period. (Note: for T-accounts, you may use a table like the one below. Create a table using the "Insert" or "Table" function in the ribbon. Cells can be merged from the "Table" function in the ribbon. You can access more format functions when you click the three dots on the right side above the text entry box.) Name of account 1 Name of account 2 Name of account 3 1. (a) Adam contributed $100,000 to A&D in exchange for 1,000 shares of A&D common stock. (b) David…
Rizio Co. purchases a machine for $9,500, terms 1/10, n/60, FOB shipping point. Rizio paid within the discount period and took the $95 discount. Transportation costs of $215 were paid by Rizio. The machine required mounting and power connections costing $657. Another $310 is paid to assemble the machine and $40 of materials are used to get it into operation. During installation, the machine was damaged and $210 worth of repairs were made. Complete the below table to calculate the cost recorded for this machine.
Specialist Printers and Bookbinders Pty Ltd commenced business on 1 July 2022. On 5 July 2022 it spent $150 000 on industrial printing and binding machinery, payable in two equal instalments on 1 August and 1 November 2022. They incurred $4 500 in transport costs to deliver the machinery to the business premises and a further $5 000 in electrical wiring and installation before the machinery could be used for production. These expenses were paid in cash. The supplier informed management the machinery has a productive capacity of 600 000 hours. It is estimated the residual value would be $10 000 in scrap metal at the end of the machinery's useful life. On 30 August 2022, the business purchased a second-hand truck for $35 000 for deliveries. Stamp duty amounted to $1 050. Four new tyres were fitted at a cost of $1 200 to meet roadworthy conditions and a signwriter was paid to wrap the business logo across the truck body at a cost of $850. The truck was expected to have a useful life of 5…
Use the trial balance presented for Lynch, Inc., in problem (51). Assume that the company will be liquidated and the following transactions will occur: • Accounts receivable of $18,000 are collected with remainder written off. • All of the company’s inventory is sold for $40,000. • Additional accounts payable of $10,000 incurred for various expenses such as utilities and maintenance are discovered. • The land and building are sold for $71,000. • The note payable due to the Colorado Savings and Loan is paid. • The equipment is sold at auction for only $11,000 with the proceeds applied to the note owed to the First National Bank. • The investments are sold for $21,000. • Administrative expenses total $20,000 as of July 23, 2017, but no payment has yet been made. a. Prepare a statement of realization and liquidation for the period from March 14, 2017, through July 23, 2017. b. How much cash would be paid to an unsecured, nonpriority creditor that Lynch, Inc., owes a total of $1,000?
On October 29th, Raider Red acquired a printer and office chairs for $1,000. The printer has a selling price of $700 and the office chairs have a selling price of $800. Determine the historical costs for the office chairs acquired by Raider Red:
Flounder Company traded a used welding machine (cost $12,420, accumulated depreciation $4,140) for office equipment with an estimated fair value of $6,900. Flounder also paid $4,140 cash in the transaction. Prepare the journal entry to record the exchange.
Cannington, Inc., designs, manufactures, and markets personal computers and related software. The following information was taken from a recent annual report of Cannington industries: Property, Plant, and Equipment (in millions): Current Year Preceding Year Land and buildings $736,180 $426,984 Machinery, equipment, and internal-use software 699,371 552,135 Office furniture and equipment 110,427 95,703 Other fixed assets related to leases 890,778 669,924 Accumulated depreciation and amortization (934,949) (780,351) a. Compute the book value of the fixed assets for the current year and the preceding year. Current year book value $ Preceding year book value $ b. Would you normally expect the book value of fixed assets to increase or decrease during the year?
A company sells an office desk. You are provided with the following information: The original cost of the desk was $3,000. The desk is sold for $1,000. . . The value of the desk is $1,500. The opening UCC balance in Class 8 is $18,000 A new desk is purchased for $2,000. What amount is recorded as a disposition in Class 8? • O O a. $3,000 O b. $1,000 O c. $1,500 O d. d. $18,000 $2,000

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