RCSB’s chalets are located in remote area in Redang Beach. As advised by the local Water Council, 10 water pumps were installed at the area on 1 January 2017 to draw fresh water from dig well. Each pump cost RCSB RM3,000 with an estimated useful life of 5 years. 6 months after, 4 of the water pumps were damaged during hailstorms. RCSB has not decided whether they want to sell the water pump as scrap or repair the pumps. The scrap value of each pump as at 31 December 2017 is RM500. Based on the relevant approved accounting standards , journalize each of the transactions that affect RCSB’s financial records for the year ended 31 December 2016 and 31 December 2017
RCSB’s chalets are located in remote area in Redang Beach. As advised by the local Water Council, 10 water pumps were installed at the area on 1 January 2017 to draw fresh water from dig well. Each pump cost RCSB RM3,000 with an estimated useful life of 5 years. 6 months after, 4 of the water pumps were damaged during hailstorms. RCSB has not decided whether they want to sell the water pump as scrap or repair the pumps. The scrap value of each pump as at 31 December 2017 is RM500. Based on the relevant approved accounting standards , journalize each of the transactions that affect RCSB’s financial records for the year ended 31 December 2016 and 31 December 2017
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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RCSB’s chalets are located in remote area in Redang Beach. As advised by the local Water Council, 10 water pumps were installed at the area on 1 January 2017 to draw fresh water from dig well. Each pump cost RCSB RM3,000 with an estimated useful life of 5 years. 6 months after, 4 of the water pumps were damaged during hailstorms. RCSB has not decided whether they want to sell the water pump as scrap or repair the pumps. The scrap value of each pump as at 31 December 2017 is RM500.
Based on the relevant approved accounting standards , journalize each of the transactions that affect RCSB’s financial records for the year ended 31 December 2016 and 31 December 2017.
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