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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

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.

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Accounting for Impairment of Assets
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education