Create journal entry to record transactions on june for ltd

Assignment Help Financial Accounting
Reference no: EM132767472

One Ltd has, in its record on 30 June 2019, a vehicle with a carrying amount of $60,000 and remaining useful life of 3 years. The vehicle was determined to have recoverable amounts of $57,000 and $40,500 on 30 June 2019 and 30 June 2020, respectively. The accountant of One Ltd also found that if One Ltd were to sell the vehicle on 30 June 2019, the net amount from the sale would be $56,000.

  • In addition to the vehicle, One Ltd has also purchased a machine for $400,000 on 1 January 2017. One Ltd has recorded an impairment of $3,000 for the year ended 30 June 2019. There was no change in the useful life of the machine after it was impaired in 2019. The value in use and fair value less cost to sell of the machine on 30 June 2020 are $250,000 and $255,000, respectively.

Additional information:

  1. One Ltd applies the cost model following IAS 36/AASB 136 Impairment of Assets requirements.
  2. One Ltd depreciates all of its items of Property, Plant & Equipment using a straight-line method over 10 years.
  3. Tax rate applicable is 30%.

Required:

Problem 1: Prepare journal entries to record the transactions on 30 June 2019 and 30 June 2020 in accordance to IAS 36/AASB 136 Impairment of Assets requirements.

Reference no: EM132767472

Questions Cloud

Find what is the maximum number of withdrawals : Find What is the maximum number of $35,000 withdrawals that he can make and still have at least $25,000 left in the account?
How knowledge of anatomy can help : Explain how knowledge of anatomy can help with surgical instrument identification? Explain the environmental conditions necessary for bacterial growth and surv
Assessment of real-life auditing issues : Assessment of real-life auditing issues through a case study that links auditing theory, auditing practice and auditing performance.
Solve the price of a three-month european put option : Solve the price of a three-month European put option on a non-dividend-paying stock with a strike price of $66 when the current stock price is $66
Create journal entry to record transactions on june for ltd : Create journal entries to record the transactions on 30 June 2019 and 30 June 2020 in accordance to IAS 36/AASB 136 Impairment of Assets requirements.
Anaerobic cellular respiration : You have been working in a biochemistry lab and have discovered a drug that allows anaerobic cellular respiration to proceed without producing
What is the size of each monthly payment for frank machine : What is the size of each monthly payment? To finance the purchase, the company borrowed $10,700 at 12% compounded quarterly.
Compute how do the stocks of companies perform the year : How do the stocks of companies perform the year after they are dropped from the Fortune list? Specifically, are they "outperforming"
Find what are the various entries on the income statement : Find What are the various entries on the Income Statement and Balance Sheet for Johnson & Sons for full-year 2014 (year-end is December 31, 2014)?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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