Accounting and Finance Assignment help/ Acemyhomework
Q.1 (Marks: 18)
Neswick Ltd. purchased new machinery on 1st January 2014 for $154,000 on account. The machine has a useful life of 7 years, at the end of which it will be disposed off at nil value. As at 1 January 2017, the machine has a market price of $99,000. Neswick record depreciation expense once a year. The company sold the machine on 30.6.2018 & received an amount of $66,000. (all amounts include GST) Required: Provide journal entries for the following (explanations are not required): a) Purchase of the machine on 1.1.2014 (Mark: 0.75) b) Relevant journals entries for the years 2014, 2015 & 2016, both without & with revaluation (per AASB 116). (Mark: 1.75) c) Relevant journals entries for the years 2017, both without & with revaluation. (per AASB 116). (Mark: 4.5) d) Relevant journals entries for the years 2018, both without & with revaluation. (Marks: 11) (Please show all calculations clearly)
Q.2 (Total Marks: 27)
On January 1 2015, Bronson Lilly paid $6,500 into a business bank account as capital for his new business ‘Artists’ Corner’. The business bought & sold artwork from various artists. Bronson marked all merchandise up by 100% on cost.
During January, the transactions were as follows: Jan 1 Bought shop equipment for $2,300 on 30 day credit 2 Bought three paintings for $160 each, paying cash 3 Bought a set of vases for $120, paying cash 4 Allowed M Bararba to take one painting home to see if it fitted in with his lounge décor. 9 Bought, for cash, a statue of David, paying $300. 12 M Bararba returned the paining as being unsuitable.
However, he was taken with the vases & bought these on a 30day credit arrangement. 16 Sold a painting for cash 17 Paid phone bill of $128 & electricity account of $84. 18 M Bararba returned the vases saying his wife did not like them & asked for a full refund. He was told that there was no refund policy but Bronson would buy them back for $150 cash. Bronson put the vases back in stock. 20 Sold a painting on 30 day credit arrangement. 23 Sold the statue for cash 24 Bought two wall hangings for $500 each, on 30 day credit 26 Sold one wall hanging for cash & the other on 2/3 net 10 credit terms. 27 Bought six paintings for $150 each paying cash 29 Buyer of wall hangings paid account & took discount 30 Paid assistant monthly salary of $600 31 Bronson presented his friend a painting bought on January 2 for his 50th birthday bash.
Required:
a) Record all transactions in a general journal. (Ignore GST) (Marks: 13.75)
b) Prepare T-accounts for cash, sales revenue & inventory. Please date each entry clearly. (Marks: 8.75)
c) Prepare an un-adjusted trial balance as of 31.1.2015. (Marks: 4.5)
Share this post: on Twitter
© 2019 Acemyhomework Writers - WordPress Theme by Kadence WP
Accounting and Finance Assignment help/ Acemyhomework
