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Can someone help me with this please, as I think I'm wrong Presented here are selected transactions for Zhou Ltd for the year ended 31
Can someone help me with this please, as I think I'm wrong
Presented here are selected transactions for Zhou Ltd for the year ended 31 December 2016: Jan. 1 Scrapped a piece of machinery that was purchased on 1 January 2006 at a cash price of $ 63,910 including 10% of GST. The machinery had a useful life of 10 years with no residual value. June 30 Sold a computer that was purchased on 1 January 2013 for $35,640 cash including 10% of GST. It had a useful life of 6 years with no residual value. The computer was sold for $14,190 cash including 10% of GST. Dec. 31 Discarded a delivery truck that was purchased on 1 January 2012 for $22,990 cash including 10% of GST and was depreciated based on a 6-year useful life with a $2,090 residual value. Purchase price of machinery, computer and delivery truck includes 10% of GST. Proceeds from sale of computer Includes 10% GST. Required Journalise all entries required on the listed dates, including entries to update depreciation, where applicable, on assets disposed of. Zhou Ltd uses straight-line depreciation. (Assume depreciation is up to date as of 31 December 2015 and the GST rate is 10%.) (Enter debit entries first followed by credit entries. Credit account titles are automatically Indented when the amount is entered. Do not Indent manually.) Zhou Ltd General Journal Debit $ Credit $ Date Account and explanation 2016 Jan. 1 Accumulated depreciation-machinery V 58100 Machinery V 58100 June 30 Depreciation expense V 2700 Accumulated depreciation-computer V 2700 June 30 Cash 14190 Accumulated depreciation-computer 18900 Loss on disposal 500 Computer V 32400 GST collected V 1290 Dec. 31 Depreciation expense 3135 Accumulated depreciation-truck V 3135 Dec. 31 Accumulated depreciation-truck V 15675 Loss on scrapping 6225 Delivery truck 20900 Click if you would like to show Work for this question: Open Show WorkStep by Step Solution
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