In relation to the new machinery purchased on 1 June 20X8: a. Calculate the depreciation expense for
Question:
In relation to the new machinery purchased on 1 June 20X8:
a. Calculate the depreciation expense for the month of June 20X8 noting that the machinery will be used on a uniform basis throughout its life and therefore the straight-line method of depreciation is to be adopted. the monthly depreciation expense can be determined by first calculating the annual depreciation expense and then dividing this by 12.
b. Prepare the journal entry to record the depreciation calculated in part a. the journal entry should be dated 30 June 20X8.
You should refer to the Chart of Accounts in order to obtain the relevant account numbers. You may wish to use the following template in order to complete this task.
Step by Step Answer:
An Introduction To Accounting Accountability In Organisations And Society
ISBN: 9780170418737
1st Edition
Authors: Craig Deegan