Advanced Financial Accounting

Advanced financial
Accounting

Contents
MAIN BODY...................................................................................................................................1
Question 1....................................................................................................................................1
Question 2....................................................................................................................................1
Question 3....................................................................................................................................2
Question 4....................................................................................................................................3
Question 5....................................................................................................................................5
Question 5....................................................................................................................................6
REFERENCES................................................................................................................................8

MAIN BODY
Question 1
Answer 1
(a)Acquisition Cost of the Machine is $860,000
(b) Journal entries
Particulars Debit amount Credit amount
Machine account Debit
To land account
To loans payables account
To cash account
860000
700000
95000
65000
Step-by-step explanation
Particulars Amount
Cash $65,000
Land @ Fair Value 700,000
Bank Loan Assumed 95,000
Acquisition Cost of Machine $860,000
Question 2
Answer 2
(a) Journal
Date Particulars Debit amount Credit amount
1 July,
2020
Revaluation loss account Debit
To machinery account
(being loss on the transaction recorded)
22000
22000
Step-by-step explanation
Straight line method
Particulars Amount
a Capitalized Cost of capital $ 280,00
b Life of Assets 10 years