The following information relating to property plant and equipment was extracted from the accounting records of Fred's Transport for year ended 28 February 2022; 1. Balances at 28 February 2021: - Equipment at cost - Accumulated depreciation: equipment - Vehicles at cost -Accumulated depreciation: vehicles R 56 000 R 10 860 R560 000 R285 360 2. The following transactions in respect of property, plant and equipment took place during the current financial year: 2.1 An old vehicle was sold on 31 August 2021 for R144 000 cash. The cost price of the vehicle sold was R240 000, and its accumulated depreciation amounted to R120 100 on 1 March 2021. The proceeds from the sale of the vehicle was used to partially finance the purchase of another vehicle for R440 000 bought on 1 September 2021. 2.2 On 28 February 2022 sold used equipment for R14 400 cash. The accumulated depreciation on this equipment was R3 280 at 1 March 2021. The cost price of the equipment was R18 000. 3. Depreciation must still be provided for as follows: • Equipment at 10% per year on the diminishing balance method, and • Vehicles at 20% per year on the straight line method. 4. The financial year ends on the last day of February.
The following information relating to property plant and equipment was extracted from the accounting records of Fred's Transport for year ended 28 February 2022; 1. Balances at 28 February 2021: - Equipment at cost - Accumulated depreciation: equipment - Vehicles at cost -Accumulated depreciation: vehicles R 56 000 R 10 860 R560 000 R285 360 2. The following transactions in respect of property, plant and equipment took place during the current financial year: 2.1 An old vehicle was sold on 31 August 2021 for R144 000 cash. The cost price of the vehicle sold was R240 000, and its accumulated depreciation amounted to R120 100 on 1 March 2021. The proceeds from the sale of the vehicle was used to partially finance the purchase of another vehicle for R440 000 bought on 1 September 2021. 2.2 On 28 February 2022 sold used equipment for R14 400 cash. The accumulated depreciation on this equipment was R3 280 at 1 March 2021. The cost price of the equipment was R18 000. 3. Depreciation must still be provided for as follows: • Equipment at 10% per year on the diminishing balance method, and • Vehicles at 20% per year on the straight line method. 4. The financial year ends on the last day of February.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Kindly find attached information, please can you assist accordingly? thanks.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 1 images
Knowledge Booster
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.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education