# sprintfast couriers

1.
On 1 July 2011 Sprintfast Couriers, which has a year-end of 30 June, purchased a delivery truck for use in its courier operations at a cost of \$65 000. At the end of the truck’s useful life it is expected to have a residual value of \$5000. During its six-year useful life, Sprintfast Couriers Limited expected the truck to be driven 246 000 kilometres.
Required
Calculate the annual depreciation charge for each of the six years of the truck’s life using the following methods:

the straight-line method
the sum-of-digits method
the declining-balance method
the units-of-production method using kilometres as the basis of use and assuming the following usage:

Don't use plagiarized sources. Get Your Custom Essay on
sprintfast couriers
Just from \$13/Page

Year
Kilometres
2012
28 000
2013
34 000
2014
42 000
2015
55 000
2016
68 000
2017
19 000
246 000
3.
Petersen Ltd has the following land and building in its financial statements as at 30 June 2018:
\$
Residential land, at cost
1 000 000
Factory land, at valuation 2016
900 000
Buildings, at valuation 2016
800 000
Accumulated depreciation
(100 000)
At 30 June 2018, the balance of the revaluation surplus is \$400 000, of which \$300 000 relates to the factory land and \$100 000 to the buildings. On this same date, independent valuations of the land and building are obtained. In relation to the above assets, the assessed fair values at 30 June 2018 are:
Residential land, previously recorded at cost
1 100 000
Factory land, previously revalued in 2016
700 000
Buildings, previously revalued in 2016
900 000
Required
Provide the journal entries to account for the revaluation on 30 June 2018. Petersen Ltd classifies the residential land and the factory land as different classes of assets.
3.
Deliveries Ltd leased a truck from a truck dealer, City Vans Ltd. City Vans Ltd acquired the truck at a cost of \$180 000. The truck will be painted with Deliveries Ltd’s logo and advertising and the cost of repainting the truck to make it suitable for another owner four years later is estimated to be \$40 000. Deliveries Ltd plans to keep the truck after the lease but has not made any commitment to the lessor to purchase it. The terms of the lease are as follows:

Date of entering lease: 1 July 2019.
Duration of lease: four years.
Life of leased asset: five years, after which it will have no residual value. Lease payments: \$ 100,000 at the end of each year.
Interest rate implicit in the lease: 10 per cent.
Unguaranteed residual: \$50 000.
Fair value of truck at inception of the lease: \$351 140.

Required

Demonstrate that the interest rate implicit in the lease is 1O per cent.
Prepare the journal entries to account for the lease transaction in the books of the lessor. City Vans Ltd at 1 July 2019 and 30 June 2020.
Prepare the journal entries to account for the lease transaction in the books of the lessee, Deliveries Ltd, at 1 July 2019 and 30 June 2020.
On 30 June 2023 Deliveries Ltd pays the residual of \$50 000 and purchases the truck. Prepare all journal entries in the books of Deliveries Ltd for 30 June 2023 in relation to the termination of the lease and the purchase of the truck.

Basic features
• Free title page and bibliography
• Unlimited revisions
• Plagiarism-free guarantee
• Money-back guarantee
On-demand options
• Writer’s samples
• Part-by-part delivery
• Overnight delivery
• Copies of used sources
Paper format
• 275 words per page
• 12 pt Arial/Times New Roman
• Double line spacing
• Any citation style (APA, MLA, Chicago/Turabian, Harvard)

# Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

### Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

### Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

### Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

### Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

## Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
\$26
The price is based on these factors: