Question
As at 30 June 2019 Grove Ltd had the following balances for non-current assets: Vehicle (at cost) $90,000 Accumulated depreciation vehicle (28,000) The vehicle was
As at 30 June 2019 Grove Ltd had the following balances for non-current assets:
Vehicle (at cost) $90,000
Accumulated depreciation vehicle (28,000)
The vehicle was purchased on 1 March 2017 at a cost of $90,000 with a useful life of 7 years and a residual value of $6,000.
The following transaction occurred in the financial year ending 30 June 2020:
On 31 August 2019 the vehicle was sold, receiving $50,000 in cash. Grove Ltd uses the straight-line method to depreciate all non-current assets and rounds all calculations to the nearest dollar.
Required: Record the necessary journal entries for the sale of the vehicle on 31 August 2019.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started