QUESTION 2 1. On 1 January 2015, Dinara Enterprise purchased a printing machine for RM90,000 cash. The machine had an estimated useful life of 10 years, an estimated residual value of RM6,000 and used straight-line method for depreciation value. Required: (a) Prepare journal entries to record depreciation expense and the disposition of the machine on 1 September 2021, under the following condition: The current printing machine and RM90,000 cash were given in exchange for a new printing machine with a cash price of RM120,000. This transaction has commercial substance. Show all your workings. (b) Distinguish between three types of depreciation methods with respect to the computation of depreciation per period and the total depreciation over the life of the asset.

QUESTION 2 1. On 1 January 2015, Dinara Enterprise purchased a printing machine for RM90,000 cash. The machine had an estimated useful life of 10 years, an estimated residual value of RM6,000 and used straight-line method for depreciation value. Required: (a) Prepare journal entries to record depreciation expense and the disposition of the machine on 1 September 2021, under the following condition: The current printing machine and RM90,000 cash were given in exchange for a new printing machine with a cash price of RM120,000. This transaction has commercial substance. Show all your workings. (b) Distinguish between three types of depreciation methods with respect to the computation of depreciation per period and the total depreciation over the life of the asset.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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