Reference no: EM132549929
Ltd acquired two new machines for cash on 1 January 2017. The cost of machine A was $400 000, plus GST, and of machine B, $600 000, plus GST. Each machine was expected to have a useful life of 10 years, and residual values were estimated at $20 000 for machine A and $50 000 for machine B.
Because of technological advances, Lomani Ltd decided to replace machine A. It traded in machine A on 31 March 2021 for a new machine, C, which cost $420 000. A $200 000, plus GST, trade-in was allowed for machine A, and the balance of machine C's cost was paid in cash. Machine C was expected to have a useful life of 8 years and a residual value of $20 000.
On 2 July 2021, extensive repairs were carried out on machine B for $66 000 cash. Lomani Ltd expected these repairs to extend machine B's useful life by 4 years and it revised machine B's estimated residual value to $19 500. Machine B was eventually sold on 1 April 2023 for $300 000, plus GST, cash.
On 1 July 2023, Lomani Ltd decided to use the revaluation model for valuation of Machine C. The fair value of Machine C was assessed to be $220 000 and the future useful life was estimated to be 5 years, residual value remains the same. Lomani Ltd uses the straight-line depreciation method, recording depreciation to the nearest whole month. The end of the reporting period is 30 June.
Required:
Question 1: Prepare general journal entries to record the above transactions and depreciation journal entries required at the end of each reporting period up to 30 June 2024.
|
What was the amount for net purchases
: Purchase return and allowance 4,000 and Beginning inventory 45,000. What was the amount for net purchases
|
|
Understanding of ethical decision-making in organizations
: ?Describe Kohlberg's theory of cognitive moral development and critically evaluate its contribution to our understanding of ethical decision-making
|
|
Prepare and journalized the transaction
: Hamle 20, 2011 E.C the company sold 80% of items purchased by 70,000 birr cash. Prepare and Journalized the above transaction?
|
|
Recommended grand strategies to deal
: What would be your recommended grand strategies to deal with the situation? Justify your recommendations.
|
|
Construct general journal entries to record the transactions
: Construct general journal entries to record the transactions and depreciation journal entries required at the end of each reporting period
|
|
Prepare the journal entry required on Quick Finances books
: On May 1, Dennis, Inc. factored €800,000 of accounts receivable with Quick Finance on a without recourse basis. Prepare the journal entry required
|
|
Why an impairment loss needs to be recognised
: Explain and show calculations of why an impairment loss needs to be recognised in relation to the machinery. Provide the appropriate journal entry at 30 June
|
|
Define organizational control
: Please define "organizational control", explain briefly the balanced score card approach
|
|
What is Vs basis in the land
: The land has an adjusted basis of $25,000 and fair market value of $35,000. What is V's basis in the land after the distribution
|