Prepare general journal entries to record the transactions

Assignment Help Financial Accounting
Reference no: EM132421078

Problem: Willis Ltd purchased new machine on 1 July 2017 for $65,000 cash. Useful life is estimated to be 5 years. Willis Ltd depreciates the machine using the straight-line method and the residual value is expected to be zero.

On 30 June 2018, the company adopted the revaluation model to account for the machine. An expert valuation was obtain showing that the machine had a fair value of $40,000 at that date.

On 30 June 2019, the machine is revalued to its fair value of $36,000. On 30 September 2019, the machine was sold for $35,000 cash.

Required:

Prepare general journal entries to record the transactions for the period 1 July 2017 to 30 September 2019 (Willis Ltd's financial year ends on 30 June annually). Narrations are NOT required.

Reference no: EM132421078

Questions Cloud

Differences between targeted marketing and mass marketing : Do you think one is more effective than the other? Why, or why not?Are you currently the target market for any goods or services?
What is the impairment loss for 2021 : On December 31, 2021 the equipment's fair value is estimated to be $3,000. What is the impairment loss for 2021?
Target marketing essay assignment : Target Marketing Essay Assignment help and solutions:-Examine how these factors influence the promotional strategies of your chosen company
Depreciation expense-straight line method : Where applicable, it applies the half-year rule. What is depreciation expense for 2019 using the straight line method (rounded to nearest dollar)?
Prepare general journal entries to record the transactions : Prepare general journal entries to record the transactions for the period 1 July 2017 to 30 September 2019 (Willis Ltd's financial year ends on 30 June annually
What transactions increase or decrease owner equity : What transactions increase or decrease owner's equity? How does net income or loss affect owner's equity? Please give an example of a transaction
What is the forecast probability of the recessionary period : Returns for the company have been 3% during a recessionary period. What is the forecast probability of the recessionary period?
What are trend percentages and how are they calculated : What are trend percentages and how are they calculated? What pitfalls must financial statement users avoid when preparing trend percentages?
Multiple-step income statement for robert corporation : Problem: Earnings per Share and Multiple-Step Income Statement The following summarized data relate to Robert Corporation's current operations:

Reviews

Write a Review

Financial Accounting Questions & Answers

  The amount of cash dietz must pay to purchase the new van

Dietz owned a delivery van with a book value of 3,000. It traded this old van in on a new one which cost 19,000. The dealer allowed Dietz a trade in allowance of 4,500 on the old van, and Dietz paid the remainder in cash. The amount of cash Dietz mus..

  What is the accrued liability caregivers should report

In May 2015 Caregivers became involved in a tax dispute with the IRS. At Dec 2015 the tax attorney for Cargivers indicated an unfavorable outcome to the disput was probable. After the year end, but before the 2015 financial statements were issued, Ca..

  Prepare a balance sheet as of february 29

Prepare an income statement for the month ended February 29, 2012 - prepare a statement of owners equity for the month ended February 29, 2012.

  Necessary journal entry and consolidation financial statemen

The case study is as mentioned above. My task is to do a short presentation on this case study. Please include any necessary journal entry and consolidation financial statement along side with the answer.

  Capital committed to the equipment during its lifetime

A firm requires power shovels for its open-pit mining operation. This mining equipment, with a first cost of $500,000, has an estimated salvage value of $70,000 at the end of 10 years' service. If the firm uses a rate of interest of 15% for the proje..

  Find the financial statements of college or hospital

Research and find the financial statements of a college or hospital and see how their reporting differs from other governmental organizations you have learned about in this class. Post both the financial statement and your listing of the differences.

  Questioncarlton maples caught the flu and required to see

questioncarlton maples caught the flu and required to see the doctor. maples called to set up an appointment and were

  What are the basic components of the conceptual framework

Explain the objective of financial reporting by business enterprises? Identify the elements that comprise the IASB due process. What are the basic components of the conceptual framework? What are your opinion about the success of the conceptual frame..

  James rivers and keller have the subsequent capital

james rivers and keller have the subsequent capital balances 48000 70000 and 90000 correspondingly. because of a cash

  Payback period and the internal rate of return for project

Faster Manufacturing Company is evaluating a capital project that requires an initial investment of $283,000. Managers estimate that for the next 12 years, the project will result in a $200,000 increase in annual cash inflows and a $150,000 increase ..

  Uncollectible account using percentage of credit sale method

At the end of the year a company reports a balance in its allowance for uncolletible accounts of $1,400 (credit) before any year-end adjustment. The company esitmates future uncollectible accounts to be 4% of creid sales for the year. Credit sales fo..

  Design a monitoring activity

What are monitoring activities - design a monitoring activity that would achieve this assurance objective.

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