Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Financial Accounting Expert

A business purchased two rivet-making machines on 01 January 2005 at a cost of Rs 15,000 each. Each had an estimated life of 5 years and nil residual value. The straight line method of depreciation is used.

Owing to an unforeseen slump in market demand for rivets, the business decided to decrease its output of rivets, and switch to making other products rather. On 31 March 2007, one rivet-making machine was sold (on credit) to a buyer for Rs 8,000.

Later in the year, though, it was decided to abandon production of rivets together, and the second machine was sold on 01 December 2007 for Rs 2,500 cash.

Required:

problem 1: For the year ended 31 December 2007, make:

a) The machinery account.
b) The accumulated depreciation of machinery account.
c) The disposal of the machinery account.

problem 2: In what way do you think that the concept of consistency applies to the depreciation?

problem 3: As the computation of depreciation is based on estimates, not facts, why bother to make the computation? Describe.

problem 4: Give three reasons why depreciation might take place?

problem 5: Name the two depreciation methods. 

Financial Accounting, Accounting

  • Category:- Financial Accounting
  • Reference No.:- M96394

Have any Question? 


Related Questions in Financial Accounting

Assignmentglorious garden lawn service1 prepare the entries

Assignment Glorious Garden Lawn Service 1. Prepare the entries using the list of transactions. Put them in the general journal. 2. Post the journal entries from the general journal to the general ledger. 3. Prepare a tri ...

Module problem-solution assignmentproblem 1brogan inc

Module Problem-Solution Assignment: Problem 1 Brogan, Inc., reports bad debt expense using the allowance method. For tax purposes the direct write-off method is used. At the end of the current year, Brogan has accounts r ...

Consider four different stocks all of which have a required

Consider four different stocks, all of which have a required return of 18.5 percent and a most recent dividend of $3.65 per share. Stocks W, X, and Y are expected to maintain constant growth rates in dividends for the fo ...

Research the major risks for businesses that indulge in

Research the major risks for businesses that indulge in commercial applications of social networking. Also, review the readings on page 311 of your textbook about how organizations can respond to social networking proble ...

Topic cash flow statementsfor this assignment you will use

Topic Cash Flow Statements For this assignment, you will use the consolidated financial statements analyze your chosen consolidated financial statements and make recommendations to leadership based on your findings. Writ ...

Portfolio template option1 hedgeco is interested in

Portfolio Template Option 1. HedgeCo is interested in purchasing 1,000 of Product Z from OverSeas Inc. HedgeCo is very concerned about two issues: 1) that the price of Product Z will change and 2) the exchange rate will ...

Journal entriesprepare the journal entries for the

Journal Entries Prepare the journal entries for the following: May 3 - Received cash from clients as advanced payment for services to be provided and recorded as unearned fees $4500 5. Received cash from clients on accou ...

Exercises1wasatch bank recently held an auction to dispose

Exercises 1. Wasatch Bank recently held an auction to dispose of various assets it had obtained through foreclosures and other loan settlements. Representatives of Aragon Semi-Conductors attended the auction to bid on an ...

Financial statement analysismy company is walmartpart

Financial Statement Analysis My company is Walmart. Part I • Perform at least one profitability ratio to measure the income and operating success of your selected company. • Perform at least one liquidity ratio to measur ...

Problem q 1on july 1 2014 linked up inc acquired a new

Problem: Q 1 On July 1, 2014 Linked Up Inc. acquired a new machine at a cost of $15,000 with a residual value of $3,000. The estimated useful life is 5 years and 100,000 units. For the year ending June 30, 2015 the machi ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro