Question 1: On January 1, 2018, Al Khor Industrial Company purchased a group of assets including land, building, equipme

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Question 1 On January 1 2018 Al Khor Industrial Company Purchased A Group Of Assets Including Land Building Equipme 1 (42.04 KiB) Viewed 73 times

Question 1: On January 1, 2018, Al Khor Industrial Company purchased a group of assets including land, building, equipment and cars for a total price of QR 3,000,000 paid in cash. Note that the estimated market value of these assets amounted to 1,360,000 riyals for land, 1,020,000 riyals for the building, 680,000 riyals for equipment, and 340,000 riyals for cars. Required: 1. Prepare a table to distribute the total price on the individual assets and prepare the journal entry to prove the purchase in the journal. 2. Prepare the settlement entry to record the depreciation of the building at the end of the fifth ycar using the straight-line method, bearing in mind that the building's life span is 20 years and the residual value of it at the end of its useful life is 220,000 riyals. 3. Explain how to show (record) the building in the balance sheet of a company at the end of the fifth year? 4. Suppose the company uses the declining installment method to depreciate the cars, knowing that the life span of the car is 4 years and the remaining value is 30,000 riyals. Calculate the depreciation expense and the accumulated depreciation for the four years? (Use the depreciation table for the four years). Answer: so