Provide the necessary journal entry for the disposal

Assignment Help Financial Accounting
Reference no: EM132817536

Black Ltd acquires an item of machinery on 1 July 2016 for a total acquisition cost of $51 000. The life of the asset is assessed as being six years, after which time Black Ltd expects to be able to dispose of the asset for $5000. It is expected that the benefits will be generated in a pattern that is best reflected by the sum-of-digits depreciation approach. On 1 July 2019, owing to unforeseen circumstances, the machinery is exchanged for a motor vehicle. The motor vehicle is two years old, originally cost $15 000 and has a fair value of $1 0000.

Required:

Problem 1: Provide the necessary journal entry for the disposal of the machinery and the a acquisition of the motor vehicle on 1 July 2019.

Reference no: EM132817536

Questions Cloud

What is the capital gain yield on warren corporation stock : Warren Corporation's stock currently sells for $35 per share. What is the capital gain yield on Warren Corporation's stock? What is its required rate of return
What be journal entry to record acquisition for abc corp : What would be the journal entry to record the acquisition? At the time of acquisition, the relative fair values of land and building are P 12,000,000
Explain five major purposes of the internal auditor : Elaborate five ways the internal auditor will keep his independence since he will be auditing the firm he is employed. Explain five major purposes of internal
Where will system administrators create users : System administrators currently create users on each computer where users need access. In Active Directory, where will system administrators create users?
Provide the necessary journal entry for the disposal : Provide the necessary journal entry for the disposal of the machinery and the a acquisition of the motor vehicle on 1 July 2019.
Upper control limit of the number of residents : What is the upper control limit of the number of residents reporting defective trash service? Please answer as a decimal and not a percentage.
How much is the carrying value of investment in associate : How much is the carrying value of the investment in associate at year-end? On April 1, 2020, UY Corporation purchased 30% of the voting rights
What is the utilization : The manager is receiving complaints about the waiting time being excessive. If she adds two representatives, what is the utilization (as a % not a decimal)?
What is the ucl for the range chart : An operator takes samples every half hour from a machine. His four most recent samples are shown in the table below:

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!

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