User Account

All Pages

Provide the general journal entries for the years

Assignment Help Financial Accounting
Reference no: EM132965302

QUESTION - Muffins Limited, a manufacturer and retailer of muffins supplied to convenience stores around the country was awarded a government grant of R150 000 on the 1 January 2018 to purchase a new muffin making machine costing R300 000. This machine would enable the company to manufacture and pack the muffins with less contamination, have higher production quantities and neater packaging in a shorter period.

The machine was purchased on the 1 March 2018 and had a useful life of 4 years with a residual value of R20 000. The company uses the straight-line method for depreciation.

The grant was received because of compliance with certain conditions in the prior year. All conditions attached to the grant, except for the acquisition of the machine had all been met on date of receipt.

REQUIRED -

Provide the general journal entries for the years ended 31 December 2018 and 2019. The company has the policy of recognising government grants as grant income.

All dates and narrations are required. Please show workings where applicable and round off to the nearest whole where applicable.

Reference no: EM132965302

Questions Cloud

Should the firm accept the project : A firm evaluate its projects using the Internal Rate of Return (IRR) Rule. If the required rate of return is 12%, should the firm accept the project
What is the project after-tax operating cash flows : The firm's marginal tax rate is 40 percent. What is the project's after-tax operating cash flows? A new capital budgeting project is being considered.
Compute breakeven in units : Sales volume = 10,000 units, per unit sale price = $10.00, variable expenses are 60% of sales, with a Net LOSS = $50,000. Compute breakeven in units
State four specific balance-related audit objectives : State four specific balance-related audit objectives for accounts payable and, for each objective, describe one common test of details of balances.
Provide the general journal entries for the years : Provide the general journal entries for the years ended 31 December 2018 and 2019. The company has the policy of recognising government grants as grant income
Determine the present value of the minimum lease payments : Determine the present value of the minimum lease payments. Pronghorn Limited has signed a lease agreement with Lantus Corp. to lease equipment with an expected.
What is the total cash flow expected from the project : Under conventional assumptions, what is the TOTAL cash flow expected from this project in the terminal year (year 4)? Answer to the nearest dollar.
What is the most that would be willing to pay : If you require an 8.5 percent rate of return, and the cash flows occur at the end of each year, then what is the most that you would be willing to pay
Why are the differences essential to proper bookkeeping : Why are these differences essential to proper bookkeeping? Why does accounting for governments necessitate a different form of accounting?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd