Cleaning Truck

The following details relate to a street cleaning truck which was imported from Germany: $NZ Purchase price paid 30/06/05 128 000 Freight Germany - Wellington 7 000 New pollution free vacuum unit added 16 000 Insurance in transit 2 000 New Tyres 15/07/05 5 000 Insurance premium paid, Y/E 15/07/06 3 000 Insurance premium paid, Y/E 15/07/07 4 000

Required:

i) The truck became operational on 30/06/05. Calculate the Cost Price of the truck. ii) Using 20% D V depreciation, show the relevant Balance Sheet extract for this truck as at 31/03/07.

Sorting Machine

Fruitful Ltd bought a fruit sorting machine for $63,500 on 1 February 2006. It has an estimated life of 10 years. The company is using diminishing value depreciation at 25%.

Required:

Show the relevant Income Statement & Balance Sheet extract for the year ended 30 September 2006 and 2007 (use whole dollars only).