Week 11 Obtain the most recent consolidated financial statements for Dollarama for the fiscal years ended February 3, 2019 and Jan 28, 2018. REQUIRED: 3. A) Using the column for ‘Store and warehouse...


Week 11


Obtain the most recent consolidated financial statements for Dollarama for the fiscal years


ended February 3, 2019 and Jan 28, 2018.



REQUIRED:


3.


A) Using the column for ‘Store and warehouse equipment’ from the table, prepare


journal entries to record each of the following events. In deciding the accounts that


are affected in each entry, choose the most likely explanation for the change in a


particular account balance:



i) Additions of $39,521



ii) Depreciation of $30,676



iii) Dispositions (disposals) of (181) in the cost section and (43) in the accumulated


depreciation section. Prepare a journal entry assuming that these amounts refer


to warehouse equipment that was ‘scrapped’ in the year (i.e. was not sold, as it


was considered worthless).



B) Recall that Note 3 says the company depreciates its ‘store and warehouse


equipment’ over a useful life of between 10 and 15 years. Using the table


determine the AVERAGE cost of the ‘Store and warehouse equipment’ over the


fiscal year ending Feb 3, 2019. [Add together the beginning of the year cost value,


and the end of the year cost value, and divide by 2]. Then divide this average cost


by the fiscal 2019 depreciation expense for store warehouse and equipment, which


is found on the table in the same column. How would you interpret the result (which


is measured in number of years)? Does your calculation fall within the range of 10


to 15 years?

Mar 21, 2021
SOLUTION.PDF

Get Answer To This Question