Calculate the net book value of the machinery

Assignment Help Accounting Basics
Reference no: EM132559727

Question 1 - The trade receivables for a company were $32,000 at 31 March 2020. At that date, it was decided to write off $1,400 of debts as irrecoverable and adjust the allowance for receivables to 5% of receivables. There was an allowance for receivables of $3,000 as at the 1 April 2019 and during the year $1,600 of debts previously written off were recovered.

What figure should be included in the statement of profit or loss as the receivables expense for the year?

$200 credit

$200 debit

$70 debit

$70 credit

Question 2 - Which of the following describes the purpose of a disclosure note?

To allow the directors to provide more detail for users of financial statements about the information contained in the financial statements.

To allow companies to present their financial statements in the most favourable light to shareholders and potential investors.

To explain the accounting treatment adopted where management have deviated from recommended accounting standards.

To provide explanations for poor performance that cannot be stated on the face of the financial statements.

Question 3 - A sole trader has not kept records of his sales or his purchases during the year. However, he has been able to provide the following information:

Opening receivables $55,000

Opening inventory $23,555

Cash received from customers $470,000

Closing receivables $52,330

Closing inventory $27,645

He operates with a gross profit margin of 30%.

What is the figure for purchases for the year?

$323,041

$378,331

$331,221

$363,575

Question 4 - A business purchases machinery on the 1 January 2017 for $55,000 with an expected useful life of 10 years and residual value of $5,000. The business year end is the 31 December. Whilst preparing the year end accounts in 2019, a review of assets shows that the machinery is only likely to have a total useful life of 7 years and no residual value is now to be expected.

Calculate the net book value of the machinery to be recorded in the NCA account for the year ended 31 December 2019.

$36,000

$41,000

$27,000

$32,000

Reference no: EM132559727

Questions Cloud

Value sensitive design of complex product systems : Discuss the benefits of Value Sensitive Design of Complex Product Systems
Aggregate supply curve of shangri la : The shape of the aggregate supply curve of Shangri La is steep and the government applied expansionary monetary and fiscal policy for decreasing inflation.
What balance remains on the suspense account : What balance remains on the suspense account after making the necessary entries to correct the above errors
Sources for your persuasive speech : you will be selecting a topic for your persuasive speech and identifying credible sources to help you present your strongest arguments to the audience.
Calculate the net book value of the machinery : Calculate the net book value of the machinery to be recorded in the NCA account for the year ended 31 December 2019
What the purpose of the essay is to spread awareness : What the purpose of this essay is to spread awareness around stereotyping and how it can be very hurtful to some people. making a stereotypical joke
Culture and change management practices : Define the IT organizational structure and how the IT organizational structure impacts culture and change management practices.
What do you expect to get out of residency : How did this information help you to better understand information security. What do you expect to get out of residency?
Model of aggregate demand-short-run aggregate supply : Use the model of aggregate demand and short-run aggregate supply to explain how each of the following would affect real GDP and the price level in the short run

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd