Advanced Financial Accounting: Depreciation, Leases, and Leave Entries

This assignment provides detailed solutions to various problems in advanced financial accounting. It covers different depreciation methods including the straight-line, sum-of-the-years' digits, declining balance, and units of production methods. It also includes journal entries for asset revaluation and lease accounting, demonstrating the calculation of implicit interest rates and journal entries for both the lessor and lessee. Furthermore, the assignment addresses the accounting for employee annual leave entitlements, providing weekly journal entries to record the entitlements and the entries when leave is availed. The solutions are supported by references to relevant academic literature, ensuring a comprehensive and well-researched approach to the accounting problems. Students can find more solved assignments and study resources on Desklib.

Running head: ADVANCED FINANCIAL ACCOUNTING
Advanced financial accounting
Name of the student
Name of the university
Student ID
Author note

1ADVANCED FINANCIAL ACCOUNTING
Table of Contents
Answer to question 1..................................................................................................................2
Answer to question 2..................................................................................................................3
Answer to question 3..................................................................................................................3
Answer to question 4..................................................................................................................5
Bibliography...............................................................................................................................6

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

3ADVANCED FINANCIAL ACCOUNTING
Answer to question 2
Journal entries f revaluation on 30th June 2018
Answer to question 3
(a) Demonstration of 10% implicit interest rate

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

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Answer to question 4
(a) Weekly journal entries to record Jerry Lopez’s annual leave entitlements recognition
(b) Journal entries, assuming that Jerry Lopez avails 2 weeks annual leave

6ADVANCED FINANCIAL ACCOUNTING
Bibliography
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.