FAC1602 Assignment 1 Semester 1 of 2021

FAC1602 ASSIGNMENT 1 – SEMESTER 1 OF
2021
1. 1

2. 4

3. 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


4. 4

R
Mortgage – City Bank 121 500
3 37 500
Long – term loan from McGregor (50 000 ∗ )
4
Long – term borrowings 159 000


5. 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