Reference no: EM132637809
Question - Powerhouse purchased some safety equipment to support its miners working at the coalface in an underground mine on 2 January 2018. The equipment cost $35,000 to purchase from Mines Safety Australia and was transported to the mine by DRT transport at a cost of $2,300 (includes insurance costs). Powerhouse engaged a contractor to install the equipment underground and their invoice totalled $1,700.
Powerhouse estimate that the equipment will remain in service for 4 years and perform 11,000 hours of service. At the end of its useful life Powerhouse estimates that the equipment will have a residual value of $6,000. The equipment was used for 1,100 hours in the first year, 3,300 hours in the second year, 4,400 in the third year and 2,200 hours in the fourth year. Assume a 31 December, end of financial year.
Required -
1. Make a schedule of depreciation expense per year for the equipment under the three depreciation methods. After two years under reducing balance depreciation using 2 times the straight-line rate, Powerhouse switched to the straight-line method. Show your calculations. Note: Three depreciation schedules must be prepared.
2. What method tracks the wear and tear on the equipment most closely?
3. A great opportunity has arisen for Powerhouse to update this existing safety equipment with the latest state of the art model. Powerhouse sells the equipment to Eraring power services after using it for almost 3 years on the 30th September, 2020 for $19,000 cash. Prepare the general journal entries to account for the initial purchase of the equipment, depreciation over the time that it is owned (assume that we have depreciated our asset based on straight line method) by Powerhouse and subsequent disposal of this equipment.
|
Xhtml scripting to develop chinese zodiac template
: In your text editor, use XHTML scripting to develop the Chinese zodiac template page, which will include five sections: Header, Footer, Text Navigation,
|
|
What is the payback period for project
: A project has an initial cost of $31,400 and produces cash inflows of $7,200, $8,900, $7,500, $2,100, and $6,500 over the next five years, respectively.
|
|
Develop social perspective on use of accounting information
: Develop an ethical and social perspective on the use of accounting information. Describe the financial accounting standard setting process
|
|
Describe the four types of work relationships
: Your manager has requested you to assist with training on work relationships. Describe the four types of work relationships and a real-life scenario.
|
|
Make a schedule of depreciation expense per year
: Make a schedule of depreciation expense per year for the equipment under the three depreciation methods. What method tracks the wear and tear
|
|
What is the npv of techron ii cash flows
: You are evaluating two different silicon wafer milling machines. The Techron I costs $320,000, has a four-year life, and has operating costs of $85,000 per year
|
|
How would integrate individual into organizational culture
: A recent new hire has joined Fig Technologies. The individual is of a cultural background that is perceived as very different from the mainstream workplace.
|
|
Evaluate advantages of alternatives to discounted cash flows
: Describe a scenario in which you would recommend one method as being more effective than others. Draw from your professional experience
|
|
Prepare the shareholder equity section of the balance sheet
: Prepare the shareholder's equity section of the Balance Sheet for Scofield Company Limited as at 31 December, 2020
|