The business made a credit purchase on 1 July 2021 of a large-capacity integrated compressor and generator,
Question:
The business made a credit purchase on 1 July 2021 of a large-capacity integrated compressor and generator, which is grouped as plant and machinery. It is to be depreciated using the diminishing balance method at a rate of 35% p.a. The cost was $59 026 ($53 660 + $5366 GST) and the installation was completed on 31 August 2021 at an additional cost of $21 241 ($19 310 + $1931 GST). The residual value was expected to be $5500
($5000 + $500 GST).
Prepare:
a a time line to 30 June 2023 b a depreciation worksheet to 30 June 2024 c an extract general ledger for plant and machinery and the two relevant depreciation accounts, including data to 30 June 2023 d an extract balance sheet to 30 June 2023.
Step by Step Answer:
Accounting An Introduction To Principles And Practice
ISBN: 9780170403832
9th Edition
Authors: Edward A. Clarke, Michael Wilson