1)XYZcom is a startup that builds high end BBQs for the consumer market. They commence operations (rather conveniently) on the first of July.

On the first of July they buy the equipment they need to produce their range of BBQs. The equipment they purchase is:

BBQ stamping machine for $220,000

BBQ Seam welder for $25,000

The effective life of the equipment is 10 years.

Create a table or other tool you can use as an asset register. Calculate the depreciation (diminishing value method) for the first year and include it in your asset register.

This equipment can be entered in the asset register using the ID numbers PR001 and PR002.

2) XYZcom pays $4,800 for 12 months insurance in July. Rather than recording the whole amount against Julys expenses, it wishes to show the expense equally across the periods for which it paid the premium. In other words, rather than showing a $4,800 expense for July it wishes to use prepayments to show a $400 expense in all months.

Show the general journal transactions for July. The general journal transaction number is GL7, the insurance account is 6010, and the prepaid insurance 1945. The transaction is processed on the 31^stJuly.