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Lulu Lime Ltd, a wholesaler of fruit products, has provided the following accounts for the financial period ending 30 June 2022:
Accounts Amount
Accounts Payable 54000
Accounts Receivable 48000
Accumulated Depreciation: Office Equipment      ?
Accumulated Depreciation: Shop Fittings      ?
Advertising Expense 42000
Capital 934500
Bank overdraft 150000
Cost of Sales 780000
Court Fees Payable (due in June 2025) 15000
Depreciation expense – Office Equipment      ?
Depreciation expense – Shop Fittings      ?
Land 487500
Mortgage payable (due in May 2024) 75000
Office Equipment 202500
Prepaid Insurance 12000
Rent Expense 18000
Sales Revenue 900000
Shares in ABC Ltd 31500
Shop Fittings 480000
Utilities Expense 27000
1. Lulu Lime Ltd purchased Office Equipment for $720,000 on 1 July 2021. The Office Equipment is depreciated using the straight-line method with a useful life of 5 years and no residual value. How much is the depreciation expense for Office Equipment as of 30 June 2022? Show calculation.
2. On 1 July 2021, Lulu Lime Ltd also purchased Shop Fittings for $960,000. The Shop Fittings are depreciated using the reducing balance method, and estimated that the value would reduce at 25%. How much is the depreciation expense for Shop Fittings in the first year? Show calculation.
3. Prepare the statement of financial performance for Lulu Lime Ltd as of 30 June 2022, including Gross Profit/Loss and Net Profit/Loss.
4. You are preparing the statement of financial performance of Lulu Lime Ltd for the year ending 30 June 2023. How much is the accumulated depreciation for both Office Equipment and Shop Fitting? Show calculation.

Asked by NKR2705 6th June 2023, 2:51 PM

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