Coomans Ltd, which started operations on 1 October 2016, prepared the following account balances as at 30 June 2019.

Details of machines owned at 30 June 2019 were as follows.

Additional information

1. Coomans Ltd calculates depreciation to the nearest month and balances its accounts at monthend.
Recorded amounts are rounded to the nearest dollar, and end of the reporting period is 30 June.

2. The company uses straight‐line depreciation for all depreciable assets except vehicles, which are depreciated using the diminishing‐balance method at a rate of 30% p.a.

3. The Vehicles account balance reflects the total paid for four identical delivery vehicles, each of which cost $40 000. The following transactions occurred from 1 July 2019 onwards.

Required

Prepare journal entries in general journal form to record the above transactions.

Transcribed Image Text:

Machinery (at cost) $310000 Accumulated Depreciation Machinery 170 500 Vehicles (at cost; purchased 20 February 2017) 160 000 Accumulated Depreciation Vehicles 59 200