Make all appropriate journal entries for the financial years

Assignment Help Financial Accounting
Reference no: EM132980618

Question - On the 1 July 2017, Cadbury Chocolates Ltd purchased some chocolate manufacturing equipment at a cost of $1,000,000 cash. They immediately spent an additional $100,000 installing the equipment before they could use it. The equipment had a useful life of 10 years and an estimated residual value of $100,000. The company uses the straight-line depreciation method.

On the 1 July 2018, the equipment broke down and the company spent $40,000 returning it to working order.

The company decided on 1 July 2019 to modify the equipment to enable it to produce at 5 times the previous volume of chocolate. The modifications cost $400,000 cash and did not change the useful life of the equipment.

Required - Make all appropriate journal entries for the financial years ending June 2018, 2019 and 2020. Show all calculations. Justify your answers and assumptions.

Reference no: EM132980618

Questions Cloud

Impact on working effectively with colleagues and clients : Write down some ways in which the following areas can relate to or impact on working effectively with colleagues and clients:
Employee perceptions of talent management : Write a Synopsis (2-3 paragraphs) about "Employee Perceptions of Talent Management Effectiveness on Retention" Journal article.
How can you provide unhurried opportunities for individual : How can you provide unhurried opportunities for individual and groups of children both indoors and outdoors?
Buddy jefferson case study : What are the problem in buddy jefferson case study
Make all appropriate journal entries for the financial years : Make all appropriate journal entries for the financial years ending June 2018, 2019 and 2020. Show all calculations. Justify your answers and assumptions
Name the three reasons for mergers : -Name the three reasons for mergers. Describe at least two examples of benefits/advantages for each reason to merge. Which of these benefits/advantages do you t
Compute the amount of deposit : Bravo Bank offers 2 percent compounded annually. Compute the amount of deposit after being kept 10 years at each bank
Effective hr strategic business partner : Explain what it means to be an effective HR strategic business partner. Why is it important for HR to be involved in all aspects of the strategic planning proce
What amount should be reported in the statement : Ducky Company reported the following information at the end of reporting period: What amount should be reported in the statement position

Reviews

Write a Review

Financial Accounting Questions & Answers

  Find what is the bond capital gain or loss yield

What is the bond's capital gain or loss yield? How would the price of the bond be affected by a change in the going market interestrate?

  Compute the book value of the building at the end

Compute the book value of the building at the end of the second year. (Omit the "$" sign in your response.)

  Briefly distinguish between financial-managerial accounting

Briefly distinguish between financial and managerial accounting as they relate to (1) the primary users, (2) the type and frequency of reports

  What is the APR of the loan

A person was considering buying a house priced at $300,000. A mortgage company claimed the interest rate for the 20 year loan is What would the monthly payment, if the person decided to borrow 90% of the cost of the house and 100% of the processing f..

  What are the days sales collected

If net sales total $50,000, beginning accounts receivable was $10,000, and ending accounts receivable is 16,000, what are the days’ sales collected?

  What is its net income for company xyz

Company XYZ has sales of $6500, total assets of $2950, and an equity multiplier (leverage) of 0.65. If its return on equity is 10%, what is its net income?

  What three-month forward exchange rate

What 3-month forward exchange rate (expressed as C$1 = ) would be consistent with interest rate parity? Use SIX decimal places.

  How many months will take to repay the debt

Angela owes ?$12,386.74. She has made arrangements to repay. How many months will it take her to repay the debt and? interest? Assume? end-of-month payments.

  Journalize the transactions in accural and cash basis

Journalize the transactions in ACCURAL and CASH basis. Richard Brandt graduated from York University with his BAS although he spent more time in the gym

  What is the present value of the stock for tjmax

TJmax is expected to pay a dividend of $2.50 a year from today. Stockholders require 11% per year. What is the present value of the stock?

  Calculate the npv for project z

Cash inflows of $26,368.00 at the end of each year for the next 12.0 years. The corporation has a WACC of 9.27%. Calculate the NPV for project Z.

  Prepare a multiple-step income statement

The adjusted trial balance of Pacific Scientific Corporation on December 31, 2016, the end of the company’s fiscal year, contained the following income statement items ($ in millions): sales revenue, $2,155;  Prepare a multiple-step income statement ..

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