On 3 January 2023, Bennetti Ltd paid ($33) 000 for a machine with a useful life of

Question:

On 3 January 2023, Bennetti Ltd paid $$33$ 000 for a machine with a useful life of 10 years and a residual value of $$3000$. On 31 December 2027, accumulated depreciation on the machine was $$15$ 000. The machine was sold on 31 May 2025. Ignore GST.

Required

(a) Prepare a general journal entry to record depreciation on the machine for the five months in 2025. Use the straight-line depreciation method

(b) Prepare an entry to record the sale of the machine on 31 May 2025 assuming a selling price of:

i. $$16$ 000 ii. $$17$ 800.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Accounting

ISBN: 9780730382737

11th Edition

Authors: John Hoggett, John Medlin, Keryn Chalmers, Claire Beattie

See More Books

Question Posted: Apr 25, 2024 06:02 AM

See More Questions

Consider the following cash flows in Table P5.5. (a) Calculate the payback period for each project. (b) Determine whether it is meaningful to calculate a payback period for project D. (c) Assuming...
Wilton Corporation reported the following selected information in its general ledger at December 31: All sales were on account. Some accounts receivable were collected. One account was written off;...
On 3 January 2017, Bennetti Ltd paid $33 000 for a machine with a useful life of 10 years and a residual value of $3000. On 31 December 2021, accumulated depreciation on the machine was $15 000. The...
Using mean-variance portfolio theory, prove that the efficient frontier becomes a straight line in the presence of a risk-free asset. [3] Consider two independent assets, Asset A and Asset B, with...
Egan Company is analyzing whether its new product will be profitable. The following data are provided for analysis: Expected variable cost of manufacturing ......$24 per unit Expected fixed...
The use of fossil fuels contributes to global climate change. Are there other reasons to reduce our consumption of fossil fuels? If so, describe them.
1-5. What are the four marketing mix elements that make up the organizations marketing program?
What effect do you think each of the following factors should have on the interest rate that a firm must pay on a new issue of long-term debt? Indicate whether each factor would tend to raise lower,...
Marys Auto Shop Inc. allows its divisions to operate as autonomous units. Their results for the current year were as follows: Sport Terrain City Revenues $1,700,000 $800,000 $6,000,000 Current assets...
Carmichael Ltd acquired a truck with a cost of $$125$ 000, an estimated useful life of 6 years and a residual value of $$15$ 000. The truck is expected to travel 30 000km per year for each year...
The following machines were scrapped as worthless by Caelum Pty Ltd: Required (a) Prepare separate entries to record the disposal of the machines by Caelum Pty Ltd. Machine Cost Accumulated Removal...
Why is the cost per equivalent unit often determined separately for direct materials and conversion costs?
The composition of moist air is given on a molar basis to be 78 percent N2, 20 percent O2, and 2 percent water vapor. Determine the mass fractions of the constituents of air. Use the table containing...
1. Consider the LFSR with so = 1, 8 = 1, S2 = 1, 83 = 1, 84 = 0, and Sn Sn-2 Sn-3+ Sn-5. Find the next 15 terms in this LFSR. What is the period of this LFSR? 2. Suppose you learn that a Hill cipher...
Assume that you are thinking of a new acquisition campaign for SEDO, assuming that you want to convert people who are already engaged. Develop a big idea (in the communication) that you can use in...
You have a backend Amazon EC2 instance providing a web service to your web server instances. Your web servers are in a public subnet. You would like to block inbound requests from the internet to...
Consider the following task set. Task C T|D T1 20 50 40 T2 10 40 30 T3 5 20 15 a) Verify whether the task set is schedulable under DM using the processor utilization-based ap- proach. b) Verify...
National health care is currently a big issue for Americans. The October 21, 2009, USA Today article Poll: Americans skittish over health care changes reported the following percentages with respect...
Explain what is meant by vicarious liability and when it is available?
Arnold inc. is considering a proposal to manufacture high end protein bars used as food supplements by body builders. The project requires an upfront investment into equipment of $1.4 million. This...
Billy Bob bank has three assets. It has $83 million invested in consumer loans with a 3-year duration, $46 million invested in T-Bonds with a 12-year duration, and $69 million in 6-month (0.5 years)...
Ventaz Corp manufactures small windows for back yard sheds. Historically, its demand has ranged from 30 to 50 windows per day with an average of 4646. Alex is one of the production workers and he...

On 3 January 2023, Bennetti Ltd paid ($33) 000 for a machine with a useful life of

Question:

Step by Step Answer:

Accounting

Students also viewed these Business questions