Reference no: EM131243870
PROBLEM 1
Journal entry for asset disposal
Extract from balance sheets at 30 June:
| |
2016
|
2015
|
|
Equipment
|
980000
|
821000
|
|
Accumulated Depreciation
|
400000
|
320000
|
|
Equipment net
|
480000
|
501000
|
Additional information:
i Depreciation expense for the year is $130000.
ii Cosh proceeds for disposal of equipment during the year amounted to $110000, resulting in o loss on sale of $20000.
• Prepare the journal entry for the disposel of equipment.
PROBLEM 2
FIFO, UFO, lower of cost and net realisable value
Dizzy Lizzy, on entrepreneurial fortune teller, also sells tarot cords as a profitable sideline to her highly successful telephone clairvoyant service. The fciowing information relates to transactions concerning inventory for the year 1 January 2016 to 31 December 2016.
1. Assuming bat o perpetual system of inventory flow is used, calculate the COGS and closing inventory for:
a FIFO
b LIFO.
2. You estimate that in the current market the net realisable value of tarot cords is $5 per unit. Do you need to make any adjustments to either of your calculations obove to apply the lower of cost and net realisable value rule? If so, calculate the adjustment.
Case:-
Inventory write-down
Treasury Wine faces class action over US disclosure
Treasury Wine Estates, the worlds largest pyre-play winemaker, shocked markets and investors in July when it admitted an oversupply of poor and unwanted wine in the United States would trigger a $160 million write-down and include a $35 million charge to destroy past-its-date wine stocks.
The profit warning and write-off saw Treasury Wine Estates shares plunge more than 12 per cent and later led to the ejection of its chief executive, David Deane.
1. What would be the journal entry For the write-downs?
2. Why would a write-down in inventory lead to a decline in share price?
|
Conditions to write an equation
: Let x represent the number. Use the given conditions to write an equation. Solve the equation and find the number.
|
|
Write a paper on disaster response planning
: Write a paper on disaster response planning. Your paper will be a case study of a disaster response of your choosing, although there will be no duplicate topics, so submit your proposed topic early.
|
|
What is the publisher website for this test
: According tothe publisher's website, what are some distinguishing characteristics of this test? Why choose this test in comparison to similar tests? If comparable tests are listed, what are they?
|
|
What are the three numbers
: George wrote three numbers on three different cards. The sum of the three numbers is 3500. The first number is 525 more than the second number. The second number is 158 less than the third number. What are the three numbers?
|
|
Prepare the journal entry for the disposel of equipment
: Prepare the journal entry for the disposel of equipment. - Assuming bat o perpetual system of inventory flow is used, calculate the COGS and closing inventory for: FIFO and LIFO.
|
|
Write a report that discusses the pros of simple plans
: Write a 4 page report that discusses the pros and cons of very simple plans versus detailed plans, although the standards mandate very specific requirements for the plans that add a level of complexity.
|
|
Are there more or fewer banks today than a decade ago
: Why are the lines between the categories of financial firms becoming more blurred than in the past?
|
|
Which specific components are up and which are down
: Which specific components are up, and which are down? What has been the trend of the composite index over the past 3 months?
|
|
Number of adults attending
: The number of students attending the fall play was 150 more than the number of adults attending. Student tickets cost $3, and adult tickets cost $5. A total of $4730 was collected. How many students and adults attended the play?
|