ACC204 Advanced Financial Accounting: Depreciation Methods & Journal

This assignment solution covers advanced financial accounting topics, focusing on depreciation methods and lease accounting. It includes calculations for straight-line, sum-of-digits, declining balance, and units of production methods for a delivery truck purchased by Sprintfast Couriers. Additionally, the solution demonstrates journal entries related to a lease agreement between City Vans Ltd and Deliveries Ltd, including the purchase of a truck and lease termination. Finally, it addresses the accounting for employee annual leave entitlements, providing weekly journal entries and entries for when leave is taken. Desklib offers a wealth of similar solved assignments and past papers for students seeking academic support.

Running head: ADVANCED FINANCIAL ACCOUNTING
Advanced financial accounting
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1ADVANCED FINANCIAL ACCOUNTING
Table of Contents
Question 1..................................................................................................................................2
Question 2..................................................................................................................................3
Question 3..................................................................................................................................3
Question 4..................................................................................................................................5
Bibliography...............................................................................................................................6

2ADVANCED FINANCIAL ACCOUNTING
Question 1
(a) Straight – line method
(b) Sum of digits method
(c) Declining balance method
(d) Units of production method

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Question 2
Question 3
(a) Demonstration of 10% implicit interest rate

4ADVANCED FINANCIAL ACCOUNTING
(b) Journal entries in the books of City Vans Ltd
(c) Journal entries in the books of Deliveries Ltd
(d) Journal entries for purchase of truck and termination of lease

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Question 4
(a) Weekly journal entries for recording recognition of Jerry Lopez’s annual leavr
entitlements –
(b) Journal entries if Jerry Lopez takes 2 weeks annual leave –

6ADVANCED FINANCIAL ACCOUNTING
Bibliography
Bragg, S.M., 2017. Fixed Asset Accounting. AccountingTools LLC.
Del Giudice, V., Manganelli, B. and De Paola, P., 2016, July. Depreciation methods for
firm’s assets. In International Conference on Computational Science and Its Applications(pp.
214-227). Springer, Cham.
Lin, K.C. and Graham, R.C., 2017. How Will the New Lease Accounting Standard Affect the
Relevance of Lease Asset Accounting?.
Maffei, M., 2016. Amortization and Depreciation. Global Encyclopedia of Public
Administration, Public Policy, and Governance, pp.1-7.
Vollmer, S., 2017. Lease Accounting Revamp. Journal of Accountancy, 223(4), p.16.
Walker, J. and Zimmer, I., 2015. Asset Revaluation Accounting. Wiley Encyclopedia of
Management, pp.1-5.