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Cost of Machine Cash Add Sales Tax Add Shipping Cost Add Insurance in Transit Add Installation Cost Total Cost of The Machine

The document discusses bad debt expense for Parot Company. It includes a journal entry to record the estimated amount of uncollectible accounts as bad debt expense and increases the allowance for doubtful accounts. It also presents a partial balance sheet for Parot Company

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Mohsin Hassan
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175 views22 pages

Cost of Machine Cash Add Sales Tax Add Shipping Cost Add Insurance in Transit Add Installation Cost Total Cost of The Machine

The document discusses bad debt expense for Parot Company. It includes a journal entry to record the estimated amount of uncollectible accounts as bad debt expense and increases the allowance for doubtful accounts. It also presents a partial balance sheet for Parot Company

Uploaded by

Mohsin Hassan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Machine A part 1

COST OF MACHINE

cash
Add sales tax
Add Shipping cost
Add insurance in transit
Add Installation cost
Total cost of the machine

TIGGY COMPANY
GENERAL JOUNAL
JOUNAL ENTRIES
Date Particular

Dec-12 machine
cash
Deprecatrion= Cost-S.V/usefull life
depreciation = 7000

Machine A part 2

TIGGY COMPANY
GENERAL JOUNAL
JOUNAL ENTRIES
Date Particular

Dec-12 Depreciation expense


Accumulated depreciation
price

38000
1700
150
80
70
40000

P.R Debit Credit

40000
40000
P.R Debit Credit

7000
7000
Machine B part 1
straight line method

Year

2012
2013
2014
2015
Depreciation=Cost-salvage value/use full life
160000-10000/4 =37500

straight line method

Depreciation cost Rate

150000 25%
150000 25%
150000 25%
150000 25%
depreciation expense Accumulated DepreciiationBook value

37500 37500 122500


37500 75000 85000
37500 112500 47500
37500 150000 10000
Machine B part 2
Diclinning balance method
in straight line method rate =25%
and double in diclinning method = 50%

Year

2012
2013
2014
2015
Depreciation cost Rate depreciation expense

160000 50% 80000


80000 50% 40000
40000 50% 20000
20000 50% 10000
accumulated Depreciiation Book value

80000 80000
120000 40000
140000 20000
150000 10000
Machine B part 3

Year

2012
2013
2014
2015
Unit of activity method
Depreciation per unit=160000-10000/125000=1.2%

Calculation of dedpreciation:
2012=45000x1.2=54000
2013=35000x1.2=42000
2014=25000x1.2=30000
2015=20000x1.2=24000

Units Rate

450000 1%
35000 1%
25000 1%
20000 1%
depreciation expenAccumulated Depreciiation Book value

54000 54000 106000


42000 96000 64000
30000 126000 34000
24000 150000 10000
QUESTION 2.BE9-3

Part A
Date

Part B
PAROT COMPANY
GENERAL JOUNAL
JOUNAL ENTRIES
Particular P.R

Bad debt expense


Allowance for doubtfull debts
(To records etsimate of uncountable account)

PAROT COMPANY
Partial Balance sheet
As on…..

Current assets
Cash 9000
inventory 130000
Prepaid insurance 7500
Account recievable(600000-35000) 565000

Total current Assets 792500


Debit Credit

35000
35000
Q NO:3BE9-4
Part A

Henderson COMPANY
GENERAL JOUNAL
JOUNAL ENTRIES
Date Particular

Allowance for doubtfull debts


Account recievable
(To records etsimate of uncountable accoun
P.R Debit Credit

5400
5400
untable account)
Q NO:3BE9-4

Part B (1)

Part B (2)
write off

BEFORE

Account recievable
less: allowance for doubtfull debts

The cash realize value of aacount recievable before write of

AFTER
Account recievable (700000-5400)
Less:Allowance for dooubt full debts (54000-5400)

The cash realize value of aacount recievable after write of


700000
54000

646000

694600
48600

646000
C

NO 1

The greatest amount of depreciation expense in 2012


80000 in the declinning balance method

The greatest amount of depreciation expense in year 4 is


NO 2 37500 in the straight line

Ther highest total ammount over the 4 year period is 150000


NO 3 in all the methods

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