question archive TO 300 A Main E 04-The Top Restaurant nord GST) The Top Restaurant had the following account balances as at January 20X7 Equipment at cost $12
TO 300 A Main E 04-The Top Restaurant nord GST) The Top Restaurant had the following account balances as at January 20X7 Equipment at cost $12
Subject:AccountingPrice: Bought3
TO 300 A Main E 04-The Top Restaurant nord GST) The Top Restaurant had the following account balances as at January 20X7 Equipment at cost $12.000 - Accumulated Depreciation S 5.200 The restaurant traded in moldovencosting $1,000 (hought on January 20x5) for a 1 new one on 1 August 2007 The new oven cont $5,000, transportation cost charged 550. The restaurant incurred another 575010 prepare the site where the oven was to be installed and expenses volved in testing the oven prior to use amounted to $100._Monthly maintenance expense of the oven is $200, Trade in allowance given by the vendor for the old oven was 5500. The restaurant settled fully the balance of 55,100 (including the first month maintenance expense for August 20X7) on 1 August 20x7. All equipment, including ovens, is depreciated on a straight line basis over a useful life of 5 years. Residual value is considered to be insignificant Financial year ends on 31 December, Required: (a) Determine the cost of the new oven (Show clearly the breakdown of expenditure items that constitute "cost"). 50+50 + 10 +250 = 5,400 Prepare the following accounts for the year ended 31 December 20X7 (showing all necessary workings): () Equipment, at cost () Accumulated Depreciation - Equipment (iii) Disposal - Equipment Workings: 17206 ???? Willem land 00 300 KOS
