Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. question 5 part a peaceful ltd's financial year en

Question 5 PART A Peaceful Ltd's financial year ends on June 30. The company uses...

90.2K

Verified Solution

Question

Accounting

image
Question 5 PART A Peaceful Ltd's financial year ends on June 30. The company uses the Fair Value basis to value the company assets according to IAS16/AASB 116 Property, Plant and Equipment. On July 1, 2018, Peaceful Ltd purchased a machine for a total cost of $50,000. The estimated residual value of the machine at the end of its useful life is nil. Peaceful Ltd depreciates its non-current assets using the straight-line method at 25% per annum. These are the estimates of the following values as at June 30, 2021: Fair value Cost to sell Value in use 15,000 1,000 16,000 The residual value of the machine is estimated at $1,000 after the revaluation. Required: Prepare the necessary journal entries for the financial year 2021 including the annual depreciation using the Fair Value basis. Show all your workings and narrations. (10 marks) (ii) Compute the depreciation charge for the machine for the financial year 2022. Show your workings

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

RideShare offers short-term rentals of vehicles that are kept in small lots in urban neighborhoods with...

Statistics
Q

Please TYPE your answers: (a) Name the types of NONsampling error and define them in a sentence...

Statistics
Q

The etiologic agent of pork tapeworm is Taenia solium Diphyllobothrium latum Taenia saginata

Biology
Q

22 What do you have to do to complete the text adventure game Zork 23...

Biology
Q

Positive rays travelling from west to east enter in a region of electric field directed...

Physics
Q

60 pounds KG

Algebra
Q

your favorite restaurant purchased a new piece of kitchen equipment for $6,000. the practice which...

Accounting
Q

If total assets decreased by $48,589 during a period of time and stockholders' equity increased...

Accounting
Q

A multiple-step income statement format shows detailed computations of net sales and other costs and...

Accounting
Q

Scenario: 1 Apples dominance in the Tablet market is so established now that rivals are...

Accounting
Q

1. (T or F ) When the yield to maturity of a bond is greater...

Finance
Q

During January 2024, the following transactions occur: January 1 Purchase equipoent for $21,000. The company...

Accounting