FAC1601 ASSIGNMENT 1 OF 2021

FAC1601 ASSIGNMENT 1 – SEMESTER 1 OF
2021
1. 4

2. 2

Calculation of interest expense

R
Interest on mortgage – City Bank (121 500 ∗ 9%) 10 935
2 1 000
Interest on Long – term loan from Mcgregor (50 000 ∗ 12% ∗ )
12
Total interest expense 11 935


3. 1

Calculation of depreciation expense

R
Remaining vehicles [(401 000 − 60 000) − (40 000 − 24 000)] ∗ 25% 81 250
9 6 750
Sold vehicle [(60 000 − 24 000) ∗ 25% ∗ ]
12
Total depreciation 88 000


4. 3

Calculation of profit or loss on sale of vehicle

R
Selling Price 30 000
Less Carrying amount (27 500)
Cost 60 000
Accumulated Depreciation (24 000 + 8 500) (32 500)

Profit on sale of vehicle 2 500