Financial Accounting, Student Value Edition (5th Edition)
5th Edition
ISBN: 9780134728520
Author: Robert Kemp, Jeffrey Waybright
Publisher: PEARSON
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Chapter 8, Problem 39BE
1.
To determine
Journalize the transaction for Corporation B regarding the sale of 1/8 of its plant and equipment.
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P10.5A Journalise a series of equipment transactions related to purchase, sale, retirement, and depreciation
At December 31, 2021. Grand Regency Limited reported the following as Non-current tangible assets:
4,000,000
16,400,000
June 11
July 1
Dec. 31
Land
Buildings
Less: Accumulated depreciation - buildings
Equipment
Less: Accumulated depreciation - equipment
Total plant assets
During 2022, the following selected cash transactions occurred.
April 1
Purchased land for R2,130,000.
May 1
(b)
(c)
(d)
28,500,000
12,100,000
48,000,000
5,000,000
Required:
(a)
43,000,000
£63,400,000
Sold equipment that cost R750,000 when purchased on January 1, 2018. The
equipment was sold for R450,000.
Sold land purchased on June 1, 2012 for R1,500,000. The land cost R400,000.
Purchased equipment for R2,500,000.
Retired equipment that cost R500,000 when purchased on December 31, 2012.
No salvage value was received.
Prepare general journal entries the above transactions. The company uses straight-line…
statement of cash flow
2019 GH¢’000
2018 GH¢’000
2017 GH¢’000
Cash flows from operating activities
Profit before income tax
32,548
35,430
11,576
Adjustments for:
- Depreciation
56,108
58,326
54,759
- Amortisation
1,185
971
563
- Loss/(profit) on disposal of property, plant and equipment
2,242
(9)
(566)
- Impairment charge
1,110
534
43
- Finance cost
19,579
19,392
30,724
- Finance income
(2,245)…
statement of cash flow
2019 GH¢’000
2018 GH¢’000
2017 GH¢’000
Cash flows from operating activities
Profit before income tax
32,548
35,430
11,576
Adjustments for:
- Depreciation
56,108
58,326
54,759
- Amortisation
1,185
971
563
- Loss/(profit) on disposal of property, plant and equipment
2,242
(9)
(566)
- Impairment charge
1,110
534
43
- Finance cost
19,579
19,392
30,724
- Finance income
(2,245)…
Chapter 8 Solutions
Financial Accounting, Student Value Edition (5th Edition)
Ch. 8 - Prob. 1DQCh. 8 - Prob. 2DQCh. 8 - Prob. 3DQCh. 8 - What is depreciation, and why is it used in...Ch. 8 - Prob. 5DQCh. 8 - Which depreciation method would be moot...Ch. 8 - Prob. 7DQCh. 8 - Prob. 8DQCh. 8 - Prob. 9DQCh. 8 - Prob. 10DQ
Ch. 8 - Prob. 1SCCh. 8 - Prob. 2SCCh. 8 - How should a capital expenditure for a long-term...Ch. 8 - Which depreciation method usually produces the...Ch. 8 - Prob. 5SCCh. 8 - Prob. 6SCCh. 8 - Prob. 7SCCh. 8 - Prob. 8SCCh. 8 - Prob. 9SCCh. 8 - Prob. 10SCCh. 8 - Prob. 11SCCh. 8 - Prob. 12SCCh. 8 - Prob. 1SECh. 8 - Long-term asset terms (Learning Objective 1) 5-10...Ch. 8 - Prob. 3SECh. 8 - Lump-sum purchase (Learning Objective 2) 5-10 min....Ch. 8 - Errors in accounting for long-term assets...Ch. 8 - Concept of depreciation (Learning Objective 3)...Ch. 8 - Depreciation methods (Learning Objective 3) 10-15...Ch. 8 - Depreciation methods (Learning Objective 3) 10-15...Ch. 8 - Prob. 9SECh. 8 - Prob. 10SECh. 8 - Prob. 11SECh. 8 - Prob. 12SECh. 8 - Prob. 13SECh. 8 - Prob. 14SECh. 8 - Prob. 15SECh. 8 - Other long term assets (Learning Objective 8) 5-10...Ch. 8 - Prob. 17SECh. 8 - Prob. 18AECh. 8 - Prob. 19AECh. 8 - Prob. 20AECh. 8 - Prob. 21AECh. 8 - Depreciation methods (Learning Objective 3) 15-20...Ch. 8 - Prob. 23AECh. 8 - Prob. 24AECh. 8 - Prob. 25AECh. 8 - Prob. 26AECh. 8 - Prob. 27AECh. 8 - Prob. 28AECh. 8 - Prob. 29AECh. 8 - Prob. 30AECh. 8 - Prob. 31AECh. 8 - Prob. 32BECh. 8 - Prob. 33BECh. 8 - Prob. 34BECh. 8 - Prob. 35BECh. 8 - Prob. 36BECh. 8 - Prob. 37BECh. 8 - Prob. 38BECh. 8 - Prob. 39BECh. 8 - Prob. 40BECh. 8 - Prob. 41BECh. 8 - Prob. 42BECh. 8 - Prob. 43BECh. 8 - Prob. 44BECh. 8 - Prob. 45BECh. 8 - Long-term asset costs and partial-year...Ch. 8 - Journalizing long-term asset transactions...Ch. 8 - Prob. 48APCh. 8 - Prob. 49APCh. 8 - Prob. 50APCh. 8 - Prob. 51APCh. 8 - Prob. 52APCh. 8 - Prob. 53BPCh. 8 - Journalizing long-term asset transactions...Ch. 8 - Prob. 55BPCh. 8 - Prob. 56BPCh. 8 - Prob. 57BPCh. 8 - Prob. 58BPCh. 8 - Prob. 59BPCh. 8 - Prob. 1CECh. 8 - Prob. 1CPCh. 8 - Continuing Financial Statement Analysis Problem...Ch. 8 - Prob. 1EIACh. 8 - Prob. 2EIACh. 8 - Financial Analysis Purpose: To help familiarize...Ch. 8 - Prob. 1IACh. 8 - Prob. 1SBACh. 8 - Written Communication A client of yours notified...
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