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QUESTION 1 On 1 July 2011, Hawks Ltd acquired land for $1 500 000 and machinery for $ 1 000 000. Hawks Ltd uses cost model to account land and revaluation model to account for machinery. Hawks Ltd depreciated the machinery over its useful life of four years, using straight-line method. Disposal value at the end of useful lifetime was assessed as Zero. The following information concerning the asset measurement was available. Detail Fair Value Cost of Diposal Value in Use 30 June 2012 Land Machinery $ 1 250 000 1 100 000 $100 000 Nil $1 200 000 Nil 30 June 2013 Land Machinery $ 1 200 000 700 000 $75 000 Nil $1 200 000 Nil 30 June 2014 Land Machinery $ 1 400 000 300 000 $100 000 Nil $1 500 000 Nil Indicators of impairment and/ or reversal of impairment existed at relevant dates for land only. Required: a) Prepare general journal entries in the books of Hawks Ltd over the period from, 1 July 2011 to 30 June 2014, in accordance with the requirements of AASB 116 " Property plant and Machinery and AASB 136 " Impairment of Assets" (Ignore the tax effect). b) Comment on the effects on the comprehensive income statement in relation to the revaluation method adopted for machinery from 30 June 2012 to 30 June 2014. c) What could be the possible reasons for impairment of land if there is any; you need to refer to AASB 136 " impairment of assets" when explaining your answer. Provide all workings necessary to derive your answer.
should be recorded by the coy for its fiscal year ended Dec31, 2008, under each of the three methods? Note the machine will have been used for one-half of its first year of life.
Provide specific examples of accounting information that might be useful in assessing Michael Porter's cost leadership competitive strategy.
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types of cost information need to be reported to support different managerial purposes and decisions. What types of cost information are reported to support managerial purposes and decisions?
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An examination of the cost records of the Williams Furniture Company reveals that the materials price variance is favorable but the materials quantity variance is unfavorable by a substantial amount. Illustrate what might this indicate?
Lebron received $50,000 of compensation from his employer and he received $400 interest from a municipal bond. Illustrate what is the amount of Lebron's gross income from these items?
Under what circumstances might Armstrong use a different cost accounting system - Finding the circumstance might Armstrong use a different cost accounting system.
4) Comment on the degree to which the statement of revenues, expenditures and other changes in fund balance captures the district's cost of services. How can you validate such a financial statement
Determine the required sales in dollars to meet the target net income during 2011. List at least two ways Pitre Company could earn their target net income of $175,000:
Total stockholders' equity and total assets using the two different sets of accounting principles over the two year period.
During July, the company purchases and uses 3,800 pounds of materials costing $19,570 in making 1,530 units of finished product. Compute the total, price, and quantity materials variances.
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