question archive Those questions carry a lot of marks so please make a sure correction and Detailed explanation, please Question 1 Kembuga Itd a company operating in the agribusiness sector acquired equipment for $ 96 million paying a cheque on 1 October, 2019 and received a government grant of $ 19
Those questions carry a lot of marks so please make a sure correction and Detailed explanation, please Question 1 Kembuga Itd a company operating in the agribusiness sector acquired equipment for $ 96 million paying a cheque on 1 October, 2019 and received a government grant of $ 19
Subject:BusinessPrice: Bought3
Those questions carry a lot of marks so please make a sure correction and Detailed explanation, please Question 1 Kembuga Itd a company operating in the agribusiness sector acquired equipment for $ 96 million paying a cheque on 1 October, 2019 and received a government grant of $ 19.2 million towards the cost of the equipment. The company's policy is to treat grants as deferred income. The useful life of the equipment is estimated at 10 years. The company time apportions depreciation where applicable. Required: I. show the accounting entries to record the equipment and receipt of the government granton 1 october, 2019. (05 marks) II. Accounting entries to the depreciation of the equipment and recognition of the grant income as at 31 december, 2019. (05 marks) III. Extracts of the financial statements to indicate the disclosure for the asset and the grant upon acquiring the asset as at 31 December 2019. (05 marks)
