GROUP ASSIGNMENT COVER SHEET

10
STUDENT DETAILS

Student name: Nguyễn Thị Minh Hoàn Student ID number: 31221021243

Student name: Lê Thị Thanh Ngân Student ID number: 31221022561

Student name: Vũ Thị Ngoan Student ID number: 31221023346

Student name: Võ Thành Hoà Student ID number: 31221025559

Student name: Nguyễn Thành Phát Student ID number: 31221024062

Student name: Phạm Hà Thanh Trang Student ID number: 31221020526

UNIT AND TUTORIAL DETAILS

Unit name: Financial Accounting Unit number: FA_DH49ISB-1

Tutorial/Lecture: Lecture Class day and time: 8:00 AM Thursday
Lecturer or Tutor name: Ms. Nhung
ASSIGNMENT DETAILS

Title: Exercise 2 - Tangible Assets

Length: 8 pages Due date: 5/10/2024 Date submitted: 5/10/2024

DECLARATION
I hold a copy of this assignment if the original is lost or damaged.
I hereby certify that no part of this assignment or product has been copied from any other student’s work or from any
other source except where due acknowledgement is made in the assignment.
I hereby certify that no part of this assignment or product has been submitted by me in another (previous or
current) assessment, except where appropriately referenced, and with prior permission from the Lecturer /
Tutor / Unit Coordinator for this unit.
No part of the assignment/product has been written/ produced for me by any other person except where
collaboration has been authorised by the Lecturer / Tutor /Unit Coordinator concerned.
I am aware that this work may be reproduced and submitted to plagiarism detection software programs for the
purpose of detecting possible plagiarism (which may retain a copy on its database for future plagiarism
checking).

Student’s signature: Minh Hoàn

Student’s signature: Hoà
Student’s signature: Trang
Student’s signature: Phát
Student’s signature: Ngoan
Student’s signature: Thanh Ngân
Note: An examiner or lecturer / tutor has the right to not mark this assignment if the above declaration has not been
signed.
 Table of Contents

Office Building Analysis 3

Equipment Analysis 4
Machinery Analysis 5
Plant Asset Analysis 6
Journal Entries Period Ended 30 June 2024 7
Office Building Analysis
The office building was constructed on 1 April 2019 with the estimated salvage value of $40,000
and 20 years useful life.
On 1 January 2024, the business owners decided to extend the office building by adding new
offices and meeting rooms with a total cost $49,000. The extension work started on 2 February
and completed by 28 March, and is expected to increase the useful life of the building by 4 years
and salvage value by $5,000.
Analysis

Office Building

Office Building before extension (1/4/2019 - 28/3/2024)

Original Cost $150,000 Useful life (years) 20

Salvage value $40,000 Months in use 9

(From 30/6/23 to 28/3/24)

Annual Depreciation $5,500 Depreciation expense for the last 9 $4,125

150,000−40,000 9
( 20
) months use (5, 500 * 12
)

(From 30/6/23 to 28/3/24)

Accumulated depreciation til $27,500 Years in use (years) 5

28/3/2024 (1/4/19 - 28/3/24)
(23, 375 + 4, 125)

Office Building after extension (28/3/2024 - 30/6/2024)

New useful life (years) 19 Cost of extensions $49,000

(20 − 5 + 4)

New cost $171,500 New residual value $45,000

(150, 000 − 27, 500 + 49, 000) (40, 000 + 5, 000)

New Annual Depreciation $6,658 Months in use (From 28/3-30/6/24) 3

171,500−45,000
( 19
)

Depreciation expense $1,664

3
(6, 658 * 12
)
Equipment Analysis

Equipment was purchased on 21 January 2020 with the estimated salvage value of
$3,200 and useful life of 5 years.
On 1 December 2023, the equipment was traded in for a $80,000 new model. The
business received $19,000 trade-in allowance and paid the remaining in cash. The new
equipment had an estimated useful life of 6 years and a salvage value of $5,000.
Analysis

Equipment

Old equipment (30/6/2023 - 1/12/2023)

Original Cost $65,000 Useful life (years) 5

Salvage value $3,200 Months in use 5

(From 30/6/2023 to 1/12/2023)

Annual Depreciation $12,360 Accumulated Depreciation till $42,230

(
65,000−3,200
) 30/6/2023
5

Depreciation expense $5,150 Accumulated Depreciation till $47,380

(From 30/6/2023 to 1/12/2023) 1/12/2023
5 (42, 230 + 5, 150)
(12, 360 * 12
)

New equipment (1/12/2023 - 30/6/2024)

Cost of new equipment $80,000

Salvage value $5,000

Annual Depreciation $12,500 Useful life (years) 6

80,000−5,000
( 6
)

Depreciation expense $7,292 Months in use 7

(12, 500 *
7
) (1/12/23 - 30/6/24)
12

Gain/ Loss on Exchange

Book value of the old asset $17,620 Trade-in Allowance $19,000

[65, 000 − (42, 230 + 5, 150)]

Gain on Exchange $1,380

(19, 000 − 17, 620)
Machinery Analysis

New machine was purchased on 10 August 2023 for $37,000. The business paid $500 to
have the equipment delivered to the venue on 16 August 2023. Additionally, the business
also decided to hire a technician to install and test the machine. During installation, a
part of the machine that worth $800 was damaged and subsequently replaced on 3
September. The machine was fully operational by 19 September and the technician was
paid $9,600 for his service. The machine had an estimated useful life of 4 years and no
salvage value.
Analysis

Machinery

Original Cost $47,100 Useful life (years) 4

(37, 000 + 500 + 9, 600)

Purchase $37,000 Months in use 9

(From 19/9/23 - 30/6/24)

Delivery cost $500

Damaged part $800 => Not capitalize -> Maintenance expense

Paid to technician $9,600

Annual Depreciation $11,775 Accumulated depreciation $8,831

(
47,100−0
) (19/9/23 - 30/6/24)
4
9
(11, 775 * 12
)
Plant Asset Analysis

Plant Assets, that cost $200,000, was purchased and installed on 2 July 2022. It was
revalued upwards by $7,000 on 30 June 2023. Besides that, the plant’s useful life and
salvage value were also re-estimated to 9 years and $18,000 respectively.
On 30 June 2024, the business recorded depreciation expense for the year. The fair
value of the plant asset was $165,000.
Analysis

Plant Assets

Plant Assets before revaluation (2/7/2022 - 30/6/2023)

Original Cost $200,000

Plant Assets after revaluation (30/6/2023 - 30/6/2024)

Fair value on 30/6/23 $189,000 Book value at 30/6/23 $182,000

(already upward 7,000) (189, 000 − 7, 000)

New Salvage value $18,000 New Useful life (years) 9

Annual Depreciation $19,000 Years in use 1

(
189,000−18,000
) (From 2/7/22 - 30/6/23)
9

Accumulated depreciation beginning til $19,000

30/6/2023 (Write-off) (19, 000 * 1)

Gain/ Loss on Revaluation of Plant Assets

Fair value $165,000 Carrying value $170,000

(189, 000 − 19, 000)

Loss on Revaluation of Plant Asset $5,000

(165, 000 − 170, 000)
 Explanation and analysis should be included in journal, easier to cap
the information

Journal Entries Period Ended 30 June 2024

Date Account Debit Credit

10/8/2023 Machine $37,000

Cash $37,000
this is capitalized in Machine account, no sub heading
16/8/2023 Machine - Machine Shipment $500

Cash $500

3/9/2023 Maintenance Expense $800

Cash $800

19/9/2023 Machine - Machine Installation $9,600

Cash $9,600

1/12/2023 Depreciation Expense - Equipment $5,150

Accumulated Depreciation - Equipment $5,150

New Equipment $80,000

Accumulated Depreciation - Equipment $47,380

Cash (80,000 - 19,000) $61,000

Old Equipment $65,000

Gain on exchange $1,380

28/3/2024 Depreciation Expense - Office Building $4,125

Accumulated Depreciation - Office $4,125

Building

Accumulated Depreciation - Office Building $27,500

Office Building $27,500

Office Building $49,000

Cash $49,000

30/6/2024 Depreciation Expense - Machine $8,831

Accumulated Depreciation - Machine $8,831

Depreciation Expense - Equipment $7,292

Accumulated Depreciation - Equipment $7,292

Depreciation Expense - Building $1,664

Accumulated Depreciation - Building $1,664

Depreciation Expense - Plant Asset $19,000

Accumulated Depreciation - Plant Asset $19,000

Accumulated Depreciation - Plant Asset $19,000

Loss on Revaluation of Plant Asset (OCI) $5,000

Plant Asset (189,000 -165,000) $24,000