Question
Bezt Pte Ltd produces clothes in Singapore. Its accounting year ends on 31 December annually, On 1 Jan 2019, the company bought a new machine
Bezt Pte Ltd produces clothes in Singapore. Its accounting year ends on 31 December annually,
On 1 Jan 2019, the company bought a new machine for $310,000. It has an estimated life of 8 years and residual value of $50,000.
The business adopts the straight-line method of depreciation.
Required:
- Compute the annual depreciation expense for the new machine. Show all workings.
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b) Prepare the general journal entries to record the depreciation expense on 31 December 2019. Narrations are not required.
General Journal
| Date | Particulars | Dr ($) | Cr ($) |
| 2019 |
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| 31 Dec |
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- Show how the machine would be presented in the Classified Balance Sheet as at 31 December 2021.
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Fundamentals of Cost Accounting
Authors: William Lanen, Shannon Anderson, Michael Maher
3rd Edition
9780078025525, 9780077517359, 77517350, 978-0077398194
