ased a cutting machine from one of its suppliers. The machine was 9 and brought into use on 01 May 2019. The financial year end of the curred relating to the purchase of the machine: lable) acquisition of the new machine hine is fully operational s the number of units produced over a 3-month period: 150 000 units 220 000 units 9 180 000 units 230 000 units 195 000 units 232 000 units O 180 000 units 255 000 units be capitalised to the machinery account. value of R80 000 and will be depreciated using the units of production Dected to produce a total of 9 000 000 units over its useful life of 10 Intrian Rand donaciation for the 980 000 15 500 22 000 12 000 18 800 5 500 32 000
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- Worldwide Fuels, a public limited company, is preparing its financial statements for the year ending 31 December 2020. The exhibits contain information relevant to the question. Exhibit 1- Construction of energy generating facility On 1 February 2020 Worldwide Fuels started the construction of an energy generating facility. The following costs were incurred during the construction: £000 Freehold land Site preparation 1,500 725 Materials 3,500 8,250 1,000 Direct labour costs Legal fees General overheads 575 To aid construction of the energy generating facility, Worldwide Fuels issued a £10 million unsecured loan on 1 February 2020. The loan carried an interest rate of 15% per annum and is repayable on 1 February 2025. On 30 June 2020, Worldwide Fuels finalised the construction of the energy generating facility. The facility was brought into use on 1 August 2020. The facility has an expected useful economic life of 30 years and that it will have no residual value at that date. Worldwide…Manny Company uses many kinds of machines in its operations. The following information relates to a machine that was acquired at the beginning of the current year: Cash paid for machine, including VAT of P96,000 Cost of transporting machine Labor cost of installation by expert fitter Labor cost of testing machine Insurance cost for the current year Cost of training for personnel who will use the machine Cost of safety rails and platform surrounding machine Cost of water device to keep machine cool Cost of adjustment to machine to make it operate more efficiently Estimated dismantling cost to be incurred as required by contract 896,000 30,000 50,000 40,000 15,000 25,000 60,000 80,000 75,000 65,000 What total amount should be capitalized as cost of the machine?On 1 January 2019 Ravioli pc began construction of a new factory. The work was completed on 31st December 2020. The costs related to the construction are shown below: £m Acquisition of land 6.0 Planning application and legal fees. 0.5 Architect and engineering fees. 0.9 Site preparation of the land 1.1 Construction materials 3.4 Construction labour 3.3 Included in the £3m of construction materials is £200,000 of timber that was not stored properly. The timber rotted before it could be used and had to be thrown away. Ravioli has various general loans outstanding during the period. The details are: £8m loan at an interest rate of 4% £6m loan at an interest rate of 5% £10m loan at an interest rate of 5.8%…
- On January 1, 2019, Sinaran purchased equipment. Following are the costs incurred in connection with the purchase of this equipment: - Purchase price of IDR 500,000,000 plus 10% VAT (IDR 50,000,000) which can be credited - The company pays an independent professional to modify the equipment to fit the specifications desired by the company. The fee paid for professional services is IDR 40,000,000 and for the spare part costs for the modification purposes IDR 10,000,000. - The cost of testing the equipment so that it functions according to its purpose is Rp.25,000,000. - The proceeds from the sale of goods resulting from the testing process are IDR 5,000,000. Requested: Calculate the cost of the equipment according to PSAK 16Mwakisha, a contractor, started business on 1 January 2018. Purchases and disposals of machines over the subsequent three years were as follows: Machine Date of Cost Date of Purchase Disposal Shs. MA 1 1 January 2018 5,000,000 MB 2 1 July 2019 2,500,000 1 June 2020 MC 3 1 October 2020 7,000,000 The machines are depreciated on straight line basis using a rate of 20 per cent per annum. Required: For the years 2018, 2019 and 2020, calculate the depreciation…On 1 Juanuary 2022, XYZ Company acquired and started to use a machine for the production of goods. On the same date, the following expenditures were incurred relating to the machine. Purchase price €40,000 Freight and insurance costs €2,000 Installation and assembly costs €1,600 Costs of testing prior to use €1,200 Additional information is as follows: XYZ Company used the cost model for the machine which had an eight-year useful life and no residual value and was depreciated using the sttraight-lien method. XYZ Company did not change the useful life, the residual value and the depreciation method of the machine for 2022 through 2024 The machine was not expected to be sold before 31 December 2024. Question: Assume that XYZ Company sold the machine for €26,000 cash on 31 December 2022. What amount of gain or loss should XYZ Company recognise in its 2024 financial statements as a result of the sale of the machine?
- Oaktree Company purchased new equipment and made the following expenditures: Purchase price Sales tax Freight charges for shipment of equipment Insurance on the equipment for the first year Installation of equipment The equipment, including sales tax, was purchased on open account with payment due in 30 days. The other expenditures listed above were paid in cash. Required: Prepare the necessary journal entries to record the above expenditures (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet < 1 $50,000 2,700 750 958 1,500 2 Record the purchase of equipment.Required information [The following information applies to the questions displayed below.] At the beginning of the year, Almond Factory bought three used machines. The machines immediately were overhauled, were installed, and started operating. Because the machines were different, each was recorded separately in the accounts. Details for Machine A are provided below. Cost of the asset Installation costs Renovation costs prior to use Repairs after production began $10,400 940 1,020 790 Prepare the journal entry to record year 2 units-of-production depreciation expense for Machine B, assuming a capitalized cost of $47,880, an estimated life of 30,000 hours, $4,500 residual value, and actual year 2 use of 8,000 hours. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Record the year 2 depreciation expense for Machine B.A company purchased a special purpose machine on August 1st of the previous year. It was installed and ready to run on January 1st of the current year. The following costs were incurred in the purchase and installation of the machine: Invoice price $1,200,000 Freight costs 6,000 Installation costs 64,000 Electrical and power connections 32,000 Repairs to correct damage during uncrating 12,000 Costs to adjust machine to appropriate specifications 56,000 Costs of spare parts for future use 108,000 Sales tax 70,500 Cost of…
- As an accounting intern at Roddick Company, you have been tasked with the review of certain transactions which dealt with intangible assets for the financial year ended December 31, 2020: A. January 5, 2020, Roddick Company application for a patent (August 2019) was granted. Legal and registration costs incurred were $140,000. The patent runs for 20 years. The manufacturing process will be useful to Roddick for 10 years. Required: Prepare the journal entry needed at the date of the transaction and on December 31, 2020 to record any resultant amortization.Oaktree Company purchased new equipment and made the following expenditures: Purchase price Sales tax Freight charges for shipment of equipment Insurance on the equipment for the first year Installation of equipment The equipment, including sales tax, was purchased on open account, with payment due in 30 days. The other expenditures listed above were paid in cash. Required: Prepare the necessary journal entries to record the above expenditures. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheetDouble Island Ltd constructed a Whizbang Machine and incurred the following costs in doing so: Amounts paid to employees to build the machine $120 000 Raw materials consumed in building the machine $45 000 Depreciation of manufacturing equipment attributed to the construction of the Whizbang Machine $25 000 REQUIRED Provide the journal entries that Double Island Ltd would use to account for the construction of the asset. Assume that immediately after the journal entries in part (a) have been made, new information becomes available that indicates that the recoverable amount of the Whizbang Machine is only $160 000. Provide the adjusting journal entries