Analysis and Journal Entries for Ace Company Transactions in April

Transactions undertaken by Ace Company during April

Parts(a) and (b) are independent of each other.(a)Ace Company has the following transactions in the month of April.1 AprilPeter invests $100,000 cash and an office equipment valued at $20,000 in the company.2 AprilThe company purchased $800 of office supplies on credit.15 AprilThe company completed $5,000 of services for a client, who must pay within 30 days.28 AprilThe company received a utility bill amounting $500.30 AprilThe company sold off an equipment costing $3,000 with a net book value of $2,000 for $1,600 cash.Analysethe above information and prepare the journal entries for Ace Company for the month of April. Narrations are not required9Analysethe above information and prepare the Statement of Financial Position of AH Pte Ltd as at 31 December 2018.c)Describethe main differences between accrual method and the cash method of accounting. Explain which method provides a more accurate picture of the profitability of a business.Question 2This question consists of two parts: Part A and B. You are required to answer both parts.Part ABenson Company bought a machine costing $120,000 on 1 April 2015. Management estimated the useful life to be 10 years and the residual value to be $20,000. On 1 January 2018, management revised the useful life and residual value of the machine. The remaining useful life was revised to 5 years while the residual value was revised to $10,000.The company’s financial year end is 31 December.Computethe depreciation expense, accumulated depreciation and net book value of the machine for 2015, 2016, 2017 and 2018.