You have been asked to prepare the final accounts for W Smith, a sole trader, for the year ended 31 December 2020. W Smith has forwarded to you all books of prime entry and ledgers, and in addition has given you the following information: i) Mr Smith had taken R2,000 out of the business bank account to take his wife on holiday. i) Up to last year the machinery and vehide used in the business had been depreciated using the reducing balance method. W Smith thinks that they should now be depreciated using the straight-line method. li) Mr Smith is confident, given his order book, that the business will continue to operate in its present form for many years.
You have been asked to prepare the final accounts for W Smith, a sole trader, for the year ended 31 December 2020. W Smith has forwarded to you all books of prime entry and ledgers, and in addition has given you the following information: i) Mr Smith had taken R2,000 out of the business bank account to take his wife on holiday. i) Up to last year the machinery and vehide used in the business had been depreciated using the reducing balance method. W Smith thinks that they should now be depreciated using the straight-line method. li) Mr Smith is confident, given his order book, that the business will continue to operate in its present form for many years.
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
Chapter4: The Balance Sheet And The Statement Of Shareholders' Equity
Section: Chapter Questions
Problem 6C: You are the accountant for Speedy Company and are preparing the financial statements for 2019. Near...
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