Trevs Gardening Services purchased a trailer on 1 July 2019 for $26 200. It was estimated to
Question:
Trev’s Gardening Services purchased a trailer on 1 July 2019 for $26 200. It was estimated to have a useful life of 5 years and a residual value at the end of that time of $2800.
Required
(a) What is the depreciation expense for the year ended 30 June 2020?
(b) What is the balance of the Accumulated Depreciation account at the end of June 2021?
(c) What is the carrying amount of the trailer in the balance sheet at 30 June 2020 and at 30 June 2021?
(d) Explain why an entry is made to the Accumulated Depreciation account rather than to the Trailer account.
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Step by Step Answer:
To address these requirements lets calculate the depreciation expense using the straightline method and determine the balance of the Accumulated Depre...View the full answer
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Related Book For 
Financial Accounting
ISBN: 9780730363217
10th Edition
Authors: John Hoggett, John Medlin, Keryn Chalmers, Claire Beattie, Andreas Hellmann, Jodie Maxfield
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