assessment.docx

# Only 375 will be included in expenses for the year

• Homework Help
• 7

This preview shows pages 1–4. Sign up to view the full content.

between the 2 financial years on a time basis. Only \$375 will be included in expenses for the year ended 30 June 2016 and the other \$1,125 will be included in the expenses for the next year.

This preview has intentionally blurred sections. Sign up to view the full version.

1 b. Which method(s) can be used by an organization with a turnover of \$1 million per annum? Accrual Question 2 > Molotov Ltd imported a machine from Korea. The machine cost \$35,600. > Freight from the Airport to the factory cost \$1,200. > The company had to pay \$2,100 to instal new wiring in the factory due to the power required by the machine. > The initial electricity account following the installation of the machine amounted to \$456 Calculate the cost of the machine. Show your calculations. \$35600 + \$1200 + \$2100 = \$39,900 Question 3 Grace bought the following assets on 1 July 2015: Asset Cost (\$) Lifetime Estimated Residual Value Car 35,000 4 1/3 years 9,000 Kitchen Equipment 20,000 5 years 1,000 Furniture 11,000 10 years Nil On 12 August she bought a computer for \$1,900. The computer has a lifetime of 3 years and an estimated residual value of \$100. Complete the depreciation table below. (Answer in the other document) Question 4 How are the following assets and liabilities classified in a balance sheet? What principles are used to value each item? > Vehicles > Land > Inventory > Mortgage > Accounts Payable Asset Liabilities
1 non current current non current current vehicles(carrying) inventory(market) mortage(principle) accounts payble land(market value) (carrying) The principle used is carrying value: Car, equipment, machines, building, land: depreciation → straight life estimate residual value → 4 years example: car → \$10000

This preview has intentionally blurred sections. Sign up to view the full version.

This is the end of the preview. Sign up to access the rest of the document.
• '18
• Balance Sheet, Generally Accepted Accounting Principles, ABC Retails

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern