Reference no: EM133071766
Question - The following account balances were extracted from the records of MPL Ltd as at 31 December 2020, before the adjustments of the following transactions:
Machinery: Cost $36,000
Accumulated depreciation $11,100
Vehicles: Cost $15,000
Accumulated depreciation $9,000
During the year ended 31 December 2020, the following transactions took place:
(1) A piece of machinery bought on 1 March 2015 with an original cost of $13,000 was sold on 31 October 2020 for $3,600.
(2) New machinery was purchased on 1 July 2020 for $10,000 by cash. MPL also paid for the custom duty of $800 and freight charges of $1,500 for the machinery.
(3) New truck was purchased for $27,000 by cash on 31 March 2020. Road tax of $500 was paid for the period from 1 March to 31 August 2020.
It is the company's policy to charge full-year depreciation in the year of purchase and none in the year of sale of non-current assets. Assets are depreciated at the following rates:
Machinery: 15% on cost
Vehicles: 20% on reducing balance
Required -
(a) Calculate the gain/loss on disposal of machinery.
(b) Calculate the depreciation charges for the year ended 31 December 2020 for both non-current assets.
(c) Calculate the net book value of both non-current assets as at 31 December 2020.
|
Calculate how much money has peter accumulated
: Five years ago Peter had started his saving for his children's higher education by putting a lump sum of $25,000 into an investment instrument on the securities
|
|
What is the amount of the average daily receipts
: ABC company deals strictly with five customers. The average amounts theses customers pay per month are $27800,$32500,$86200,$209800, and $426500. The smaller tw
|
|
Case study-rogers who they are
: Rogers Communications Inc. is a Canadian communications and media organization running on the whole withinside the fields of wi-fi communications, cable televis
|
|
What is the accounting break-even level of production
: The variable cost per unit is $4.20. What is the accounting break-even level of production?
|
|
Calculate the depreciation charges for the year ended
: MPL also paid for the custom duty of $800 and freight charges of $1,500 for the machinery. Calculate the depreciation charges for the year ended
|
|
How much are fred monthly repayments
: Fred Smith has just purchased a new car valued at $45,700. He paid a 15% deposit and borrowed the remainder from his bank. The terms of his personal loan are a
|
|
Determining the final payment of automotive excellence inc
: Automotive Excellence Inc. borrowed $20,000.00 on April 16 with an interest rate of 8.5% per annum. On May 30, $5800.00 was repaid, and on August 15, $5600.00
|
|
Calculate the revenue to be recognised by Elliot Ltd
: Calculate the revenue to be recognised by Elliot Ltd for the year ended 30 June 2021 and prepare the journal entries related to the revenue
|
|
Listing all four government banking institutions
: Listing at least 3 examples for each category (Commercial/Universal, Thrift or Rural and Cooperative Banks within the Philippines only) of Private Banking Insti
|