PLEASE HELP
The top image is the question, the bottom image is the answer.
Within the answer (second image), in working 1 (W1) Revaluation where did they get the cost from as well as the SOPOL OCI-Revaluation gain figure from?
And why do we CR cost for machine 2 and not DR like machine 1?
Homework Answers
NET REVALUATION GAIN due to change in COST OF MACHINES:
|
PARTICULAR |
MACHINE 1 |
MACHINE 2 |
|
OLD COST(1.09.2018) |
180,000 |
80,000 |
|
NEW COST(1.09.2018) |
264,000 |
112,000 |
|
NET INCREASE |
84,000 |
32,000 |
*(31.08.2018 ~ 01.09.2018 as end of August is the beginning of September)
Also, Surplus of revaluation Gain was transferred to reserves.
Now, Change in cost balances of machines (as on 1.09.16
and 1.09.2018)
|
PARTICULAR |
MACHINE 1 |
MACHINE 2 |
|
OLD COST (1.09.2016) |
240,000 |
120,000 |
|
NEW COST (1.09.2018) |
264,000 |
112,000 |
|
NET INCREASE/(DECREASE) |
24,000 |
(8,000) |
This the reason due to which the COST of machine 1 was DR., and COST of machine 2 (negative) was CR.
[*PLEASE MENTION IN COMMENTS IF YOU LIKE THE ANSWER. ALSO, IF YOU STILL FACE DIFFICULTY MENTION IT.]
Add Answer to:
PLEASE HELP
The top image is the question, the bottom image is the
answer.
Within the...
The top image is the question, the bottom image is the answer. Within the answer, in...
The top image is the question, the bottom image is the
answer.
Within the answer, in working 1 (W1) Revaluation where did they
get the cost from as well as the SOPOL OCI-Revaluation gain figure
from?
And why do we CR cost for machine 2 and not DR like machine
1?
Q6 POLSON LTD Polson Ltd has supplied you with information about the two factory machines that they own: Machine 1 Machine 2 Depreciation policy Straight line 8 years Straight...
Kookaburra Ltd used the cost model to measure its machine. Machine Z had cost of $80...
Kookaburra Ltd used the cost model to measure its machine. Machine Z had cost of $80 000 and had a carrying amount of $70 000 at 30 June 2020 and is depreciated on a straight-line basis over a 10-year period. On 31 December 2020, the directors of Kookaburra Ltd decided to change the basis of measuring the equipment from the cost model to the revaluation model. Machine Z was revalued to $70 000 with an expected useful life of 8...
On 30 June 2019, Grove Ltd adopted the revaluation model to measure equipment. Due to the...
On 30 June 2019, Grove Ltd adopted the revaluation model to measure equipment. Due to the revaluation carried out on 30 June 2019, Grove Ltd recognised a gain on revaluation of $30,000 for the one item of equipment listed in this class. After recording depreciation expense on equipment for the year ended 30 June 2020, and writing the equipment down to its carrying amount of $325,000, Grove Ltd obtained the fair value of $285,000 as at 30 June 2020 for...
Brambie Manufacturers Inc., a publicly listed company, has two machines that are accounted for under the...
Brambie Manufacturers Inc., a publicly listed company, has two
machines that are accounted for under the revaluation model.
Technology in Brambie’s industry is fast-changing, causing the fair
value of each machine to change significantly approximately every
two years. The following information is available:
Machine #1
Machine #2
Acquisition date
Jan. 2, 2014
June 30, 2013
Original cost
$420,000
$588,000
Original estimate of useful life
8 years
12 years
Original estimate of residual value
–0–
–0–
Pattern of depreciation
Straight-line
Straight-line...
Question 2 (8 marks) Petersen Ltd has the following land and building in its financial statements...
Question 2 (8 marks) Petersen Ltd has the following land and building in its financial statements as at 30 June 2018: 1 000 000 900 000 800 000 (100 000) Residential land, at cost actory land, at valuation 2016 Buildings, at valuation 2016 Accumulated depreciation At 30 June 2018, the balance of the revaluation surplus is $400 000, of which $300 000 relates to the factory land and $100 000 to the buildings. On this same date, independent valuations of...
d. Polycarp Ltd adopts revaluation model for subsequent measurement of its intangible assets in accordance with...
d. Polycarp Ltd adopts revaluation model for subsequent measurement of its intangible assets in accordance with IAS 38: Intangible assets. The policy of Polycarp is to revalue its intangible asset at the end of each year. An intangible asset with an estimated useful life of 9 years was acquired on 1 January 2018 for GH€45,000. It was revalued to GH¢54,400 on 31 December 2018 and the revaluation surplus was correctly recognized on that date. As at 31 December 2019, the...
Please Help me! Thanks The following details are taken from the accounting records of Alanna Ltd...
Please Help me! Thanks
The following details are taken from the accounting records of Alanna Ltd as at 30 June 2018: DR S CR S Sales Revenue 1,425,000 15,000 37,500 Gain on Sale of Plant and Equipment Interest Revenue Cost of Goods Sold 900,000 45,000 30,000 45,000 22,500 112,500 Distribution Expenses Selling Expenses Administration Expenses Interest Expense Income Tax Expense Share Capital ( as at 1 July 2017) Retained Earnings ( as at 1 July 2017) Asset Revaluation Reserve (as...
Extracts from the statements of financial position of Wild Boar Ltd as at 30 June 2017...
Extracts from the statements of financial position of Wild Boar Ltd as at 30 June 2017 and 30 June 2016 are as follows: 2017 30 June 2016 30 June Assets Cash 150,000 180,000 Account receivables 96,000 85,000 Allowance for bad debts (7,000) (5,200) Prepaid rent 50,000 56,000 Equipment 80,000 80,000 Accum. dep – equipment (32,000) (28,000) Land 200,000 100,000 Machine 800 0 Accum. dep – Machine 50 0 Deferred tax asset ? 19,470 Liabilities Trade payables 68,000 76,000 Unearned service...
Question 3 On 1 July 2017, Guinness Ltd acquired two assets within the same class of...
Question 3 On 1 July 2017, Guinness Ltd acquired two assets within the same class of plant and equipment for cash. Information on these assets is as follows. Cost ($) Expected Useful Life Machine A 100,000 5 years Machine B 60,000 3 years The machines are expected to generate benefits evenly over their useful lives. The class of plant and equipment is accounted for subsequent to acquisition using the revaluation model. At 30 June 2018,...
QUESTION 1 Richy Limited has plant that cost R 345 000 on 01 January 2016. Installation...
QUESTION 1 Richy Limited has plant that cost R 345 000 on 01 January 2016. Installation and modification costs R 69 000 (including vat). Transfer costs paid to lawyer amounted to R 20 000. Transport costs for bringing the asset to location amounted to R 20 000. The plant was ready for use on 01 January 2016. The machines were cleared on 01 March 2016 at a cost of R 10 000. Due to the low order levels in April...
The top image is the question, the bottom image is the
answer.
Within the answer, in working 1 (W1) Revaluation where did they
get the cost from as well as the SOPOL OCI-Revaluation gain figure
from?
And why do we CR cost for machine 2 and not DR like machine
1?
Q6 POLSON LTD Polson Ltd has supplied you with information about the two factory machines that they own: Machine 1 Machine 2 Depreciation policy Straight line 8 years Straight...
On 30 June 2019, Grove Ltd adopted the revaluation model to measure equipment. Due to the revaluation carried out on 30 June 2019, Grove Ltd recognised a gain on revaluation of $30,000 for the one item of equipment listed in this class. After recording depreciation expense on equipment for the year ended 30 June 2020, and writing the equipment down to its carrying amount of $325,000, Grove Ltd obtained the fair value of $285,000 as at 30 June 2020 for...
Brambie Manufacturers Inc., a publicly listed company, has two
machines that are accounted for under the revaluation model.
Technology in Brambie’s industry is fast-changing, causing the fair
value of each machine to change significantly approximately every
two years. The following information is available:
Machine #1
Machine #2
Acquisition date
Jan. 2, 2014
June 30, 2013
Original cost
$420,000
$588,000
Original estimate of useful life
8 years
12 years
Original estimate of residual value
–0–
–0–
Pattern of depreciation
Straight-line
Straight-line...
Question 2 (8 marks) Petersen Ltd has the following land and building in its financial statements as at 30 June 2018: 1 000 000 900 000 800 000 (100 000) Residential land, at cost actory land, at valuation 2016 Buildings, at valuation 2016 Accumulated depreciation At 30 June 2018, the balance of the revaluation surplus is $400 000, of which $300 000 relates to the factory land and $100 000 to the buildings. On this same date, independent valuations of...
d. Polycarp Ltd adopts revaluation model for subsequent measurement of its intangible assets in accordance with IAS 38: Intangible assets. The policy of Polycarp is to revalue its intangible asset at the end of each year. An intangible asset with an estimated useful life of 9 years was acquired on 1 January 2018 for GH€45,000. It was revalued to GH¢54,400 on 31 December 2018 and the revaluation surplus was correctly recognized on that date. As at 31 December 2019, the...
Please Help me! Thanks
The following details are taken from the accounting records of Alanna Ltd as at 30 June 2018: DR S CR S Sales Revenue 1,425,000 15,000 37,500 Gain on Sale of Plant and Equipment Interest Revenue Cost of Goods Sold 900,000 45,000 30,000 45,000 22,500 112,500 Distribution Expenses Selling Expenses Administration Expenses Interest Expense Income Tax Expense Share Capital ( as at 1 July 2017) Retained Earnings ( as at 1 July 2017) Asset Revaluation Reserve (as...
Most questions answered within 3 hours.
-
Industry standards suggest that 16% of new vehicles require
warranty service within the first year. Jones...
asked 3 minutes ago -
1) Comment of this statement: “A compiler transforms high-level
language statements directly into object codes”.
asked 6 minutes ago -
Calculate the molality, mole-fraction and percent mass of 28.9M
HF at 25 degrees Celcius of the...
asked 15 minutes ago -
A developmental psychologist believes that children raised in
bilingual families will have higher verbal fluency at...
asked 21 minutes ago -
A fast food meal has 5660 kJ of energy. A person uses energy at
a rate...
asked 33 minutes ago -
The pKb for a generic amine(R-NH2)) in
aqueous solution is 6.30. What is its pKa?
asked 35 minutes ago -
The following reactions have the indicated equilibrium constants
at a particular temperature: N2(g) + O2(g) ⇌...
asked 37 minutes ago -
Please Help ASAP.
1Consider the below code which iterates over a linked
list of n nodes...
asked 53 minutes ago -
Determine the air to fuel ratio of:
Canadian natural gas, with 93.9% methane, 4.2% ethane, 0.3%...
asked 53 minutes ago -
A manufacturer of power tools claims that the average amount of
time required to assemble their...
asked 56 minutes ago -
"electron-withdrawing substituents on carbon encourage back
donation", then on the next page he says that "greater...
asked 1 hour ago -
On December 31, 2016, the shareholders’ equity section of the
balance sheet of R & L...
asked 1 hour ago