3.1. Discuss the disclosure requirements for a change in accounting policy. 3.2. RT (LTD) purchased a plant for R3 000 000 on 1 January 2018. Depreciation – on a straight-line basis over 25 years Residual Value – R500 000 On 1 January 2022, the company reassessed the remaining useful life of the asset and calculated it to be 16 years and the residual value was changed to R250 000 Disclose the change in accounting estimate for the year ended 31 December 2022? 3.3. State the journal to correct the depreciation?
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3.1. Discuss the disclosure requirements for a change in accounting policy.
3.2. RT (LTD) purchased a plant for R3 000 000 on 1 January 2018.
3.3. State the journal to correct the depreciation?
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- The following information is available about Company DEF's depreciable assets on January 1, 2019 (numbers are in € millions): Original Cost € 50,000 Depreciable Base € 47,500 Accumulated Depreciation (1/1/2019) € 28,500 Depreciable Life 10 years An analyst believes that the above described estimates do not reflect the underlying economic depreciation of Company DEF's assets. As a result, the analyst wants to adjust Company DEF's financial statements based on his own estimates. While the analyst assumes that the residual value assumption of Company DEF is correct, the analyst adjusts the depreciable life of the asset. In adjusting the financial statements of Company DEF, the analyst decreases the 1/1/2019 accumulated depreciation by €10687.5. What is the depreciable life (in years) that the analyst uses in adjusting Company DEF's financial statements?Subject:- Account On 1 January 2019 the carrying value of equipment was R19 720 (cost price, R25 670 and accumulated depreciation, R5 950). On 1 January 2019 equipment costing R5 670 was purchased (not included in the R25 670). The depreciation policy is to provide for depreciation, on all equipment held at year-end, at 25% per annum on the diminishing-balance method. Prepare the PPE note..Assume that Yousuf & Sons company purchased equipment for OMR 12000 on 31st December 2014. The company charging OMR 2400 depreciation per annum by following straight-line depreciation method. The company charged total depreciation till 31December 2017 is OMR 7200 and the company decided to sell this equipment for OMR 3500 on 31st Mar2018. Find out the profit or loss on sale of equipment and pass the journal entry in the books of Yousuf& Sons Company. a. Dr Cash A/C OMR 3500 Dr Accumulated depreciation OMR 7800 Dr Loss on sale of equipment OMR 700 and Equipment A/c OMR 12000 b. Dr Cash A/C OMR 3500 Dr Accumulated depreciation OMR 7800 and Cr Equipment A/C 11300 c. None of the given options d. Dr Cash OMR 3500 Dr Accumulated depreciation OMR 7200 Dr Loss on sale of Equipment OMR 1300 and Cr Equipment A/C 12000 Clear my choice
- Assume that Yousuf & Sons company purchased equipment for OMR 12000 on 31st December 2014. The company charging OMR 2400 depreciation per annum by following straight-line depreciation method. The company charged total depreciation till 31December 2017 is OMR 7200 and the company decided to sell this equipment for OMR 3500 on 31st Mar2018. Find out the profit or loss on sale of equipment and pass the journal entry in the books of Yousuf& Sons Company. a. Dr Cash A/C OMR 3500 Dr Accumulated depreciation OMR 7800 Dr Loss on sale of equipment OMR 700 and Equipment A/c OMR 12000 b. Dr Cash A/C OMR 3500 Dr Accumulated depreciation OMR 7800 and Cr Equipment A/C 11300 c. None of the given options d. Dr Cash OMR 3500 Dr Accumulated depreciation OMR 7200 Dr Loss on sale of Equipment OMR 1300 and Cr Equipment A/C 120007. On January 1, 2018 an entity purchased for P4,800,000 machine with useful life of ten years on residual ofP200,000. The machine was depreciated by the double declining balance method. The entity changed to thestraight line method on January 1, 2020 and the residual value did not change. What is the accumulateddepreciation on December 31,2020?a. 2,087,000 c. 2.188,000b. 2,112,000 d. 2,015,200Please no written by hand solutions Prepare journal entries to record the following transactions. You are required to show all calculations: 3.1 The company adopted the straight-line depreciation method. Record the 15% depreciation on the plant and equipment purchased On 1 December 2020 for R125 000. 3.2 The allowance for credit losses account has an opening balance of R4 500. The policy requires the allowance to equate 8% of the total accounts receivable. The debtors sub-ledger totaled R52 000 prior receiving 40c in the rand on an account of R3 000. The financial manager instructed the write off on the balance. Entry General Ledger Debit Credit.
- Subject: Advance finance accounting Q) An item of depreciable machinery is acquired on 1 July 2016 for $280 000. It is expected to have a useful life of 10 years and a zero-residual value (straight-line). On 1 July 2020, it is decided to revalue the asset to its fair value of $150 000.Required:Provide journal entries to account for the revaluation.Que: 3 A company purchased a fixed asset on 1-1-2017 for OMR 100,000 and decided to depreciate it at 10% per annum on straight-line basis. The replacement value of the asset on the following dates was noted as follows 31.12.2017----OMR 120,000 31.12.2018------OMR 150,000 31.12.2019--OMR 200,000 Assuming depreciation is chargeable on the basis of the year-end replacement value. Under CCA method of inflation accounting, you are required to compute for each of the 3 years: 1. Depreciation adjustment 2. Backlog depreciation17. Maroon Company’s depreciation policy on machinery and equipment is as follows: A full year’s depreciation is take in the year of an asset’s acquisition No depreciation is take in the year of an asset’s disposition The estimated useful life is five years The straight-line method is used On June 30, 2021, Maroon sold for P230,000 a machine acquired in 2018 for P420,000. The accumulated depreciation was P216,000 at December 31, 2020, and the original estimated salvage value was P60,000. How much was the gain or loss on the disposal should Maroon record in 2021? Group of answer choices 34,000 loss 26,000 loss 26,000 gain 14,000 gain
- Question 1. Trancor Ltd has been in operation for over 60 years. It has a standard straight-line depreciation policy for all its fixed assets. A new CFO was appointed in January 2020 and after review of the financial statements questioned the large write off of assets in December 2019. The Accountant stated these assets were computers and were not being used as the technology was obsolete. New computers were purchased on March 1, 2019 to replace the old ones and these were being depreciated over 5 years using the current policy. The CFO after discussion with management agreed that the reducing balance method at a rate of 30% per annum is more suitable for the computers and instructed the Accountant to make the changes to the depreciation policy. This change meets the requirements of a change in accounting policy. The scrap value of the computers is $5,000. The Balance Sheet extract for December 31, 2019 was as follows: Computers at cost 80,000 Accumulated…t 30 June 2019, the financial statements of McMaster Ltd showed a building with a cost (net of GST) of $372,000 and accumulated depreciation of $188,000. The business uses the straight-line method to depreciate the building. When acquired, the building's useful life was estimated at 30 years and its residual value at $74,000. On 1 January 2020, McMaster Ltd made structural improvements to the building costing $117,000 (net of GST). Although the capacity of the building was unchanged, it is estimated that the improvements will extend the useful life of the building to 40 years, rather than the 30 years originally estimated. No change is expected in the residual value. Calculate the number of years the building had been depreciated to 30 June 2019. (Round intermediate answer & final answer to 0 decimal places, e.g. 5,275.) Number of yearsQuestion 1. Trancor Ltd has been in operation for over 60 years. It has a standard straight-line depreciation policy for all its fixed assets. A new CFO was appointed in January 2020 and after review of the financial statements questioned the large write off of assets in December 2019. The Accountant stated these assets were computers and were not being used as the technology was obsolete. New computers were purchased on March 1, 2019 to replace the old ones and these were being depreciated over 5 years using the current policy. The CFO after discussion with management agreed that the reducing balance method at a rate of 30% per annum is more suitable for the computers and instructed the Accountant to make the changes to the depreciation policy. This change meets the requirements of a change in accounting policy. The scrap value of the computers is $5,000. The Balance Sheet extract for December 31, 2019 was as follows: Computers at cost 80,000 Accumulated…