The Research & Development Department of Large Mart iscurrently working on the development of...

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Accounting

The Research & Development Department of Large Mart iscurrently working on the development of a “study pillow” thatallows students to upload study material into their brain whilstsleeping. In order to complete this project, Large Mart haspurchased the following items:
A car (which is used to transport students participating in atrial of the study pillow to the laboratory)
A notebook computer (which is used to record the feedback ofstudents participating in the trial)
The car was purchased on credit on 11th May 201x. The cost ofthe car was $45,000. Large Mart received the car on 20th May butbefore Large Mart was able to start using the car, a special in carcomputer system that connects the car to the Large Mart server(called the intersect) was installed for a total cost of $2,000.After installing the special in car computer, Large Mart was ableto start using the car on the 25th May. The car was paid on 31thMay 201x and Large Mart received an early payment discount of 5%when the payment was made.
Large Mart expects to use the car for a period of 5 years. Atthe end of its useful life, the car is expected to have a residualvalue of $1,000. The depreciation method used for the car is thedeclining balance method of depreciation. Large Mart calculates thedeclining balance depreciation percentage of this car in the sameway it calculates all of its declining balance percentages.
On 1st July 201x, the accounting department of Large Martdecides to revalue the car to its fair value of $49,000.
The notebook computer was purchased on credit (and received) on1st May 201x. The computer had a list price of $5,000. However,because Large Mart purchases all of its notebook computers fromthis supplier, Large Mart was able to receive a “volume discount”of 10%. As a result, the supplier only sent Large Mart an invoicefor $4,500. Large Mart paid the computer on 5th May after deductingan early payment discount of 5%.
Required:
1)     (0.5 marks) –Provide all journal entries that are necessary in the books ofLarge Mart to account for the purchase and payment of the notebookcomputer.
2)     (1 mark) – Provideall journal entries that are necessary in the books of Large Martto account for the depreciation of the car for the month of May201x AND provide a detailed outline of allrequired calculations
3)     (1.5 marks) –Provide all journal entries that are necessary in the books ofLarge Mart to account for the revaluation of the car on 1st July201x AND provide a detailed outline of allrequired calculations.

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1 Journal entries for purchase and payment of notebok computer 1st May 201x Notebook computer Dr 4500 To Supplier 4500 Being notebook computer purchased 5000 less 10 volume discount 5th May 201x Supplier Dr See Answer

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In: AccountingThe Research & Development Department of Large Mart iscurrently working on the development of a...The Research & Development Department of Large Mart iscurrently working on the development of a “study pillow” thatallows students to upload study material into their brain whilstsleeping. In order to complete this project, Large Mart haspurchased the following items:A car (which is used to transport students participating in atrial of the study pillow to the laboratory)A notebook computer (which is used to record the feedback ofstudents participating in the trial)The car was purchased on credit on 11th May 201x. The cost ofthe car was $45,000. Large Mart received the car on 20th May butbefore Large Mart was able to start using the car, a special in carcomputer system that connects the car to the Large Mart server(called the intersect) was installed for a total cost of $2,000.After installing the special in car computer, Large Mart was ableto start using the car on the 25th May. The car was paid on 31thMay 201x and Large Mart received an early payment discount of 5%when the payment was made.Large Mart expects to use the car for a period of 5 years. Atthe end of its useful life, the car is expected to have a residualvalue of $1,000. The depreciation method used for the car is thedeclining balance method of depreciation. Large Mart calculates thedeclining balance depreciation percentage of this car in the sameway it calculates all of its declining balance percentages.On 1st July 201x, the accounting department of Large Martdecides to revalue the car to its fair value of $49,000.The notebook computer was purchased on credit (and received) on1st May 201x. The computer had a list price of $5,000. However,because Large Mart purchases all of its notebook computers fromthis supplier, Large Mart was able to receive a “volume discount”of 10%. As a result, the supplier only sent Large Mart an invoicefor $4,500. Large Mart paid the computer on 5th May after deductingan early payment discount of 5%.Required:1) (0.5 marks) –Provide all journal entries that are necessary in the books ofLarge Mart to account for the purchase and payment of the notebookcomputer.2) (1 mark) – Provideall journal entries that are necessary in the books of Large Martto account for the depreciation of the car for the month of May201x AND provide a detailed outline of allrequired calculations3) (1.5 marks) –Provide all journal entries that are necessary in the books ofLarge Mart to account for the revaluation of the car on 1st July201x AND provide a detailed outline of allrequired calculations.