AFAR_TMA2_Working File01 For Q7.xlsx - Apex Trading 2 New machines for cash Machine A = RM40,000 Machine B = RM100,000 Depreciation policy Useful life

AFAR_TMA2_Working File01 For Q7.xlsx - Apex Trading 2 New...

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Apex Trading Depreciation policy: * 2 New machines for cash 01/01/2002 * Useful life of 10 yrs 2002-31/12/2011 Machine A = RM40,000 * Residual value Machine B = RM100,000 RM2,000 for Machine A RM5,000 for Machine B
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Machine A Machine 01/01/02 Cash 40,000 31/12/02 Bal c/d 40,000 0/01/02 Cash 100,000 40,000 40,000 01/01/03 Bal b/d 40,000 31/12/02 Bal c/d 40,000 40,000 40,000 01/01/04 Bal b/d 40,000 31/12/04 Bal c/d 40,000 40,000 40,000 Cash in Hand 01/01/02 Mac A 40,000 01/01/02 Mac B 100,000
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e B
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Apex Trading Depreciation policy: * 2 New machines for cash 01/01/2002 * Useful life of 10 yrs 2002-31/12 Machine A = RM40,000 * Residual value: Machine B = RM100,000 RM2,000 for Machine A * Traded-in 1 new machine on 31/03/04 RM5,000 for Machine B Machine C = RM64,000 Machine A: * Depreciate RM3,800 pa Revalued for machine B Machine B: RM75,000 for machine B ### * Depreciate RM9,500 pa RM63,000 for machine C ### * Extensive repair: cash cost to RM66,000 * Extend machine's UL by 4 yrs 10+4 * Increased machine B's estimated residual val to RM12,200 Machine C: * Useful life of 8 yrs * Residual value is RM8,000 * Depreciation RM7,000 pa RM40,000 - RM8,550 = RM31,450 RM28,000 - RM31,450 = (RM3,450)
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Journal Entries 2/2011 Date 1/1/2002 Dr 1/1/2002 Cr 6/30/2002 Dr 6/30/2002 Cr 6/30/2002 Dr 6/30/2002 Cr lue 6/30/2003 Dr 6/30/2003 Cr 6/30/2003 Dr 6/30/2003 Cr Depreciation charge will (RM40,000 - RM2,000)/1 3/31/2004 Dr 3/31/2004 Cr Double entries for dispo 3/31/2004 Dr 3/31/2004 Cr 3/31/2004 Dr 3/31/2004 Cr 3/31/2004 Dr 3/31/2004 Cr 3/31/2004 Dr 3/31/2004 Cr 3/31/2004 Dr 3/31/2004 Cr Journal entries for record 3/31/2004 Dr 3/31/2004 Dr 3/31/2004 Dr
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3/31/2004 Cr 3/31/2004 Cr Machine B & C as at 30/0 Machine B got RM9,500 6/30/2004 Dr 6/30/2004 Cr Accumulated depreciatio 6/30/2004 Dr 6/30/2004 Cr Revalued for machine B: RM76,250 - minus RM75 6/30/2004 Dr 6/30/2004 Cr Accumulated depreciatio 6/30/2004 Dr 6/30/2004 Cr Revalued for machine C: RM62,250 - minus RM63 6/30/2004 Dr 6/30/2004 Cr 6/30/2004 Cr Extensive repairs: Machin Extend useful life by 4 yrs 7/12/2004 Dr 7/12/2004 Cr 6/30/2005 Dr 6/30/2005 Cr Accumulated depreciatio 6/30/2005 Dr 6/30/2005 Cr Revalued for machine B: RM129,800 - minus RM1 6/30/2005 Dr
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6/30/2005 Cr 6/30/2005 Cr 6/30/2005 Cr B's remaining UL = 11.5 - Accumulated depreciatio 6/30/2005 Dr 6/30/2005 Cr Revalued for machine C: RM55,903 - minus RM55 6/30/2005 Dr 6/30/2005 Dr 6/30/2005 Dr 6/30/2005 Cr C's remaining UL = 7.75 - Calculate depreciation fo RM131,500 - RM12,200 = 4/1/2006 Dr 4/1/2006 Cr Disposal 4/1/2006 Dr Machine B 4/1/2006 Cr 4/1/2006 Dr 4/1/2006 Cr 4/1/2006 Dr 4/1/2006 Cr Why different? 4/1/2006 Dr 4/1/2006 Cr Calculate depreciation fo RM55,000 - RM8,000 = R 6/30/2006 Dr 6/30/2006 Cr Accumulated depreciatio 6/30/2006 Dr 6/30/2006 Cr Revalued for machine C: RM48,037 - minus RM50
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6/30/2006 Dr 6/30/2006 Cr 6/30/2006 Cr 6/30/2006 Cr C's remaining UL = 6.75 -
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Account Name Debit (RM) Machine (A & B) (40,000 + 100,000) 140,000 Cash Depreciation - A & B 6,650 Acc Depreciation - A & B SOCI 6,650 Depreciation - A & B Depreciation - A & B 13,300 Acc Depreciation - A & B SOCI 13,300 Depreciation - A & B
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  • Winter '16
  • Winnie Wong
  • Depreciation, new machines, RM100,000, RM64,000

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