Chapter 10 - account PDF

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Brief Exercise 10.1 64 000 + 3 000 + 2 500 + 2 000 + 4 400 = 75 900 10.2 30 000 + 1 800 + 400 = 32 200 10.4 42 000 – 9 000 = 33 000 33 000/5 = 6 600 (20%) (1st year) 6 600 + 6 600 = 13 200 (2nd year) 10.6 33 000*40% = 13 200 (1st year) 33 000 – 13 200 = 19 800 19 800*40% = 7 920 (2nd year) 10.11 Accumulated depreciation – Equipment Equipment

44 000 44 000

Accumulated depreciation – Equipment Loss on disposal of plant asset Equipment

37 000 7 000 44 000

10.12 Sep 30 Sep 30 Sep 30 Sep 30

Depreciation expense Accumulated depreciation – Equipment Cash Equipment Accumulated depreciation – Equipment Equipment Loss on disposal of plant asset Equipment

Exercise 10.5 145 000 – 15 000 = 130 000 130 000/100 000 = 1.3

4 800 4 800 20 000 20 000 46 800 46 800 5 200 5 200

Year 2020 2021 2022 2023

Unites of activity 27 000 32 000 24 000 17 000

Depreciation cost 1.3 1.3 1.3 1.3

Annual depreciation expense 35 100 41 600 31 200 22 100

Accumulated depreciation 35 100 76 700 107 900 130 000

Book value 109 900 68 300 37 100 15 000

10.6 A. 96 000 – 12 000 = 84 000 84 000*20% = 16 840 16 840*3/12 = 4 210 B. 84 000/10 000 = 8.4 8.4*1 700 = 14 280 C. 96 000*40% = 38 400 38 400*3/12 = 9 600 (2020) 96 000 – 9600 = 86 400 86 400*40% = 34 560 (2021) 10.7 1) 38 000 – 6 000 = 32 000 32 000*12.5% = 4 000 (2020 & 2021) 2) 32 000/100 000 = 0.32 0.32*15 000 = 4 800 (2020) 0.32*12 000 = 3 840 (2021) 3) 38 000*25% = 9 500 (2020) 38 000 – 9 500 = 28 500 28 500*25% = 7 125 (2021) Dec 31

Depreciation expense Accumulated depreciation – Truck $

Non-current asset Truck

38 000

$ 4 000

4 000 4 000 $ 34 000

10.12 Jan 1

Accumulated depreciation – Machinery Machinery

58 000 58 000

June 30

Depreciation expense Accumulated depreciation – Machinery Cash Machinery Accumulated depreciation – Machinery Machinery

4 000 4 000 14 600 14 600 28 000 28 000

June 30 June 30

June 30

Machinery Profit on disposal of plant asset

2 600 2 600

Dec 31

Accumulated depreciation – Machinery Loss on disposal of plant asset Machinery

30 000 4 000 34 000

Jan 1

Cash Accumulated depreciation – Equipment Truck Gain on disposal of plant asset

28 000 25 200 50 000 3 200

May 1

Cash Accumulated depreciation – Equipment Truck Gain on disposal of plant asset

28 000 28 000 50 000 6 000

Jan 1

Cash Accumulated depreciation – Equipment Loss on disposal of plant asset Truck

11 000 25 200 13 800 50 000

Oct 1

Cash Accumulated depreciation – Equipment Loss on disposal of plant asset Truck

11 000 31 500 7 500 50 000

10.13

Problem 10.2

B. 70 000*9/12 = 52 500 (2018) 140 000 – 52 500 = 87 500 87 500*40% = 35 000 (2019)...