Financial Accounting An IFRS Perspective in Romania 1st. Edition by Duțescu, Adriana | 9783030294854 | 3030294854 | Holooly

Accounting for Business

Financial Accounting An IFRS Perspective in Romania

46 SOLVED PROBLEMS

Question: 6.5

Company ABC purchases equipment from the supplier of 119,000 lei (VAT 19% included). A transportation invoice of 10,000 lei plus 19% VAT is paid to TRANS SRL to deliver the equipment to the ABC location; an amount of 10,000 lei is due for installation procedures and 5000 lei is calculated to be ...

Verified Answer:

a) What is the acquisition cost of the equipment? ...

Question: 5.6

Assume that on December 1st 20X3, Artisan SA has a beginning inventory of 2000 units at 4400 lei each. During December, the company manufactured 5000 units with a production cost of 4576 lei per unit and sold 6000 units. The company uses the periodic inventory and FIFO method for assigning costs. ...

Verified Answer:

The net realisable value of one unit of the closin...

Question: 5.12

Physical inventory review. Present the accounting treatment that Top Printers S.R.L. (the company from Exercise 5, Sect. 5.2.2) will apply for the X300 printers if the physical inventory determines only 9 pieces of printers in inventory on December 31st, 20X8. ...

Verified Answer:

As previously mentioned in Exercise 5, at the end ...

Question: 6.23

A piece of equipment for the car plant, purchased for the price of 100,000 lei (net of VAT), with net custom taxes of 10,000 lei, chequing procedures of 10,000 lei (net of VAT), estimated to be used for 10 years, applying the double-decline method (no residual value) is sold by the end of the 4th ...

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Step 1. Computation of the initial cost of the equ...

Question: 6.22

An assembly line of a car manufacturer, costing 1 million lei, depreciated straight-line for 10 years and tested for impairment by the end of year 5. At that moment, the fair value of the assembly line is 300,000 lei and the value in use is 390,000 lei. Is the asset impaired? What is the Balance ...

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The net carrying amount by the end of year 5 is 50...

Question: 5.5

Cost methods—determining the cost of goods sold. Top Printer S.R.L. is a local wholesaler of printers. On December 1st, 20X8, the opening inventory of model X300 printers consists of 100,000 lei (100 printers × 1000 lei/piece). In December 20X8, the company carried out the following transactions ...

Verified Answer:

The following cost formulas can be used in order t...

Question: 6.16

A business with an accounting period which runs from January 1st to December 31st, purchases a new intangible asset on April 1st, 20X8, in the amount of 24,000 lei. The expected useful life of the asset is 4 years and its residual value is nil. What should the amortisation charge for 20X8 be? ...

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The amortisation expense per year of service will ...

Question: 6.15

MarCom SA purchased a new commercial vehicle with an estimated useful life of five years. The cost of the asset was 22,500 lei (net of VAT) and its residual value after five years was estimated to be 2500 lei. Show the effects of the annual depreciation. ...

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Using the straight-line method, the annual depreci...

Question: 6.8

A building, with a cost of 22 mil. lei, is depreciated over 20 years via the straight-line method (a residual value of 2 mil. lei is estimated). The following events occur: (a) during the 3rd year of use its internal walls are repainted, the overall cost is 80,000 lei (no VAT added) (b) on December ...

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The painting process by the end of the third year ...

Question: 3.1

Prepare a Balance Sheet for Dip Co. as at December 31,20X1, given the information below (in lei): ...

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Assets Lei O.E. + Liabilities Lei Non-current as...

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