University Finance Assignment: Depreciation Methods and Accounting

This assignment solution addresses a finance problem involving depreciation methods. It calculates annual depreciation charges for a delivery truck using straight-line, sum-of-digits, declining-balance, and units-of-production methods. The solution includes journal entries for revaluation, demonstration of an implicit interest rate, and journal entries related to lease accounting. The assignment also covers journal entries for employee leave entitlements. The document provides a detailed breakdown of each method, step-by-step calculations, and the corresponding journal entries, offering a comprehensive guide for understanding and applying different depreciation techniques in accounting. The assignment covers various aspects of depreciation, including the units of production method, and includes journal entries to reflect the accounting treatment of different scenarios. The solution thoroughly addresses the assignment brief, providing detailed explanations and calculations for each question.

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 1
(a) Straight – line method
(b) Sum – of – digits method
(c) Declining – balance method
(d) Units of production method

3ADVANCED FINANCIAL ACCOUNTING
Answer 2
Journal entries for revaluation on 30th June 2018
Answer 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

5ADVANCED FINANCIAL ACCOUNTING
Answer 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
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.