Give the general journal entry to record the cost

Assignment Help Accounting Basics
Reference no: EM133168197

Question - At 30 June 2019, the financial statements of McMaster Ltd showed a building with a cost (net of GST) of $240,000 and accumulated depreciation of $122,000. The business uses the straight-line method to depreciate the building. When acquired, the building's useful life was estimated at 30 years and its residual value at $48,000. On 1 January 2020, McMaster Ltd made structural improvements to the building costing $75,000 (net of GST). Although the capacity of the building was unchanged, it is estimated that the improvements will extend the useful life of the building to 40 years, rather than the 30 years originally estimated. No change is expected in the residual value.

The number of years the building had been depreciated to 30 June 2019 is 19 years.

Give the general journal entry to record the cost of the structural improvements on 1 January 2020.

Reference no: EM133168197

Questions Cloud

Motor coach brochure assignment : How many total days is tour and What countries included - at least 3 countries - Germany, Italy, France, UK
What would be the effect in the exchange rate : If the stock exchange in China grows and becomes bigger than wall street, what would be the effect in the exchange rate between USD and Yuan
How much is the cost of goods sold to be reported : The branch reported net income for the month of March of P49,500. How much is the cost of goods sold to be reported
Explain the audit manager concern : You are the audit senior on the audit of Abundant Games Ltd (AGL), a large retailer of computer games. Explain the audit manager concern
Give the general journal entry to record the cost : The business uses the straight-line method to depreciate the building. Give the general journal entry to record the cost of the structural improvements
Determine the total expected transaction price : Determine the total expected transaction price for this agreement.
Demonstrate professional communication skills : Administer the legal obligations of a building - Research for using official website or communicate with at least one relevant government agency
Which two of the four accounts payable would you select : Which two of the above four accounts payable would you select as the most important to confirm? Explain your choice in terms of the audit objectives
Calculate the expected share price today : Their most recent dividend was $5.27, and it is expected that profits and dividends will grow by 29% in the first year, Calculate the expected share price today

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