Reference no: EM131604546
Question 1 - On 1 July 2011 Sprintfast Couriers, which has a year-end of 30 June, purchased a delivery truck for use in its courier operations at a cost of $65 000. At the end of the truck's useful life it is expected to have a residual value of $5000. During its six-year useful life, Sprintfast Couriers Limited expected the truck to be driven 246 000 kilometres
REQUIRED - Calculate the annual depreciation charge for each of the six years of the truck's life using the following methods:
(a) the straight-line method
(b) the sum-of-digits method
(c) the declining-balance method
(d) the units-of-production method using kilometres as the basis of use and assuming the following usage:
Year
|
Kilometres
|
2012
|
28 000
|
2013
|
34 000
|
2014
|
42 000
|
2015
|
55 000
|
2016
|
68 000
|
2017
|
19 000
|
|
246 000
|
Question 2 - Star City Limited commences construction of a multi-purpose water park on 1 July 2015 for Pretoria Limited. Star City Limited signs a fixed-price contract for total revenues of $50 million. The project is expected to be completed by the end of 2018 and Pretoria Limited controls the asset throughout the period of construction. The expected cost as at the commencement of construction is $38 million. The estimated costs of a construction project might change throughout the project-in this example, they do change. The following data relates to the project (the financial years end on 30 June):
|
2016 ($m)
|
2017 ($m)
|
2018($m)
|
Costs for the year
|
10
|
18
|
12
|
Costs incurred to date
|
10
|
28
|
40
|
Estimated costs to complete
|
28
|
12
|
-
|
Progress billings during the year
|
12
|
20
|
18
|
Cash collected during the year
|
11
|
19
|
20
|
Required -
(a) Using the above data, compute the gross profit to be recognised for each of the three years, assuming that the outcome of the contract can be reliably estimated.
(b) Prepare the journal entries for the 2016 financial year using the percentage-of-completion method.
(c) Prepare the journal entries for the 2016 financial year, assuming the stage of completion cannot be reliably assessed.
Video replay machine
: 15 years ago, the National Hockey League purchased a video replay machine for $100,000. should the N.H.L. replace the video system if real MARR is 12%.
|
What acs services would you recommend and why
: Explain how the American Cancer Society might provide education and support. What ACS services would you recommend and why?
|
How fast is the water cooling initially
: With time, t, in minutes, the temperature, H, in degrees Celsius, of a bottle of water put in the refrigerator at t = 0.
|
Petroleum drilling equipment using rate of return analysis
: Determine if Intercontinental should purchase the equipment using rate of return analysis
|
Compute the gross profit to be recognised for each years
: Compute the gross profit to be recognised for each of the three years, assuming that the outcome of the contract can be reliably estimated
|
What organizational leader has had most positive influence
: What organizational leader has had the most positive influence in your life, and why? How would you describe what this person contributes to your life?
|
The pathophysiology and epidemiology of the disorder
: Think about the pathophysiology and epidemiology of the disorder.Explain the disorder you selected, including its pathophysiology and epidemiology.
|
The loan is structured as an amortized loan
: You borrowed ?$200,000 exactly 2 years ago. The loan is structured as an amortized loan. How much principal have you paid over the first 2? years?
|
At what rate is person surface area increasing
: The person in part (a) stays constant height but increases in weight by 0.5 kg/year. At what rate is his surface area increasing when his weight is 62 kg?
|