Financial Accounting McGraw-Hill Companies

Question: Discuss about the Financial Accounting for McGraw-Hill Companies. Answer: Journal Entries for the year 2015-16 and 2016-17:- In the Books of ChiHerbal Ltd. Journal Entry Dr. Cr. Date Particulars Amount Amount ($) ($) 1/8/2015 Motor Vehicle 1 A/c. Dr. 126000 Repairs Maintenance A/c. Dr. 1250 To, Cash A/c. 127250 (Being a second-hand motor vehicle purchased and its engine repaired in cash) 30/10/2015 Equipment A/c. Dr. 34000 To, Cash A/c. 34000 (Being an equipment purchased in cash) 31/12/2015 Repairs Maintenance A/c. Dr. 900 To, Cash A/c. 900 (Being transmission of MV1 repaired and oil changed) 30/06/2016 Depreciation on MV1 A/c. Dr. 19800 To Accumulated Depreciation-MV1 A/c. 19800 (Being depreciation charged on MV1) 30/06/2016 Depreciation on Equipment A/c. Dr. 2183 To Accumulated Depreciation-Equipment A/c. 2183 (Being depreciation charged on equipment) 30/06/2016 Income Statement A/c. Dr. 24133 To Depreciation on MV1 A/c. 19800 To Depreciation on Equipment A/c. 2183 To Repairs Maintenance A/c. 2150 (Being depreciation on MV1 equipment and Repairs Maintenance transferred to Income Statement) 13/07/2016 Repairs Maintenance A/c. Dr. 340 To, Cash A/c. 340 (Being damaged bumper of MV1 repaired) 1/12/2016 Depreciation on MV1 A/c. Dr. 9000 To Accumulated Depreciation-MV1 A/c. 9000 (Being depreciation charged on MV1) 1/12/2016 Motor Vehicle -2 A/c. Dr. 272000 Accumulated Depreciation - MV 1 A/c. Dr. 28800 To, Motor Vehicle-1 A/c. 102000 To, Cash A/c. 170000 To, Profit on Sale of Asset A/c. 28800 (Being old motor vehicle exchanged with new motor vehicle, the balance cost of the new one paid in cash) 30/06/2017 Depreciation on MV2 A/c. Dr. 19833 To Accumulated Depreciation-MV2 A/c. 19833 (Being depreciation charged on MV2) 30/06/2017 Depreciation on Equipment A/c. Dr. 3275 To Accumulated Depreciation-Equipment A/c. 3275 (Being depreciation charged on equipment) 30/06/2017 Accumulated Depreciation-Equipment A/c. Dr. 5458 To Equipment A/c. 3338 To Revaluation Surplus A/c. 2120 (Being Equipment revalued at current fair value) 30/06/2017 Income Statement A/c. Dr. 30328 Revaluation Surplus A/c. Dr. 2120 To Depreciation on MV1 A/c. 9000 To Depreciation on MV2 A/c. 19833 To Depreciation on Equipment A/c. 3275 To Repairs Maintenance A/c. 340 (Being depreciation on MV1,MV2 Equipments, Repairs Maintenance and revaluation surplus transferred to Income Statement) 30/06/2017 Profit on Sale of Asset A/c. Dr. 28800 To Capital Reserve A/c. 28800 (Being depreciation charged on equipment) Bibliography:- Christensen, T. E., Baker, R. E., Cottrell, D. M. (2014).Advanced Financial Accounting. The McGraw-Hill Companies, Inc Weil, R. L., Schipper, K., Francis, J. (2013).Financial accounting: an introduction to concepts, methods and uses. Cengage Learning