User Account

All Pages

Calculate depreciation expense and gain or loss on disposal

Assignment Help Financial Management
Reference no: EM132324768

Question

Sunshine Ltd acquires an item of machinery on 1 July 2011 for $420000. When the asset is acquired, it is considered to have a useful life for the entity of six years. After this time, the machine will have no residual value. It is believed that the pattern of economic benefits would best be reflected by applying the sum-of-digits method of depreciation. However, contrary to expectations, on 30 June 2014 the asset is sold for $150000.

Required:

Calculate depreciation expense and gain or loss on disposal of the machinery and prepare all the journal entries necessary for Sunshine Ltd for the year ended 30 June 2012, 30 June 2013, 30 June 2014.

Reference no: EM132324768

Questions Cloud

What advantages can a detailed budget : Do you keep a budget on a computer or your smart phone? What advantages can a detailed budget provide for a family or individual?
Derive the lm curve : Consider the following economy with: Real Money demand (M/P)^d = - 12 R + 0.38 Y; Real Money supply (M^s/P)= 4510
What rational reson behind acqusion : Anlyze five porter power in case and what rational reson behind acqusion And what must happen to be successful - recommended CLS,BLS , green strategy
Share at least five risks to accounting information systems : Virtually all organizations have at least some information system infrastructure. Share at least five risks to accounting information systems.
Calculate depreciation expense and gain or loss on disposal : Calculate depreciation expense and gain or loss on disposal of the machinery and prepare all the journal entries necessary for Sunshine Ltd for the year ended.
Create a work breakdown structure for the project : Create a work breakdown structure (WBS) for the project showing work to level 3 or 4 (as appropriate). The WBS should be based on the deliverables
What is the contribution margin per unit and ratio for 2018 : Andrew Ltd produces gumboot and sells it across different states in Australia. The company is considering expanding their product market internationally.
Calculate the operating expenses in cash flow for operating : Statement of cash flows for 2017 using the direct method for operating activities. How to calculate the operating expenses in cash flow for operating activities
Discuss the generic strategy pursued by Cirque de Soleil : Strategic Management Assignment - Making reference to the case study above, critically discuss the generic strategy pursued by Cirque de Soleil

Reviews

Write a Review

Financial Management Questions & Answers

  What is the standard deviation of the equipment life

What is the standard deviation of the equipment life ?

  Explain how an interest rate is just a price

Explain how an interest rate is just a price.

  Calculate intrinsic value of HCBs equity as of end of year

Calculate the value of HCB's tax shields as of the end of 2017?. calculate the intrinsic value of HCB's equity as of the end of 2017 ?

  What is the amount of the net capital spending for the year

The financial statements of The Equipment Outlet reflect depreciation expenses of $41,800 and interest expenses of $35,200 for the year. The current assets increased by $19,700 and the net fixed assets increased by $34,900. What is the amount of the ..

  WACCs of firms in personal computer industry tend

WACCs of firms in the personal computer industry tend to average around 14%. a. What is Universal’s WACC?

  More intertwined with organizational strategy

Describe how purchasing strategy is becoming more intertwined with organizational strategy. How has this evolved and how is it changing the role of purchasing managers? Describe the legal ramifications that are associated with the purchasing role. Wh..

  How much total interest is earned on original deposit

Interest-on-Interest Consider a $1,200 deposit earning 6 percent interest per year for 9 years. How much total interest is earned on the original deposit

  Treasury STRIPS-What is the yield to maturity

A Treasury STRIPS is quoted at 68.533 and has 4 years until maturity. What is the yield to maturity?

  Aircraft control actuator is part of flight control system

An aircraft control actuator is part of the flight control system that enables an airplane to fly.

  What is the dividend expected to be in nine years

Oxygen Optimization stock is currently priced at 43.18 dollars per share. What is the dividend expected to be in 9 years?

  What is the value of this company share

What is the value of this company's share? If the current market price of the share is €35, is the share a desirable purchase?

  Find the amount paid by each insurance company

Find the depreciation per unit. Find the amount paid by each insurance company. Assume that any coinsurance requirement is met.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd