Question
Cockle Bay Marine Pty Ltd charters (rents) boats and yachts to qualified sailors. The company paid $8,000 on 9 May 2021 to Point Nepean Shipwrights
Cockle Bay Marine Pty Ltd charters (rents) boats and yachts to qualified sailors. The company paid $8,000 on 9 May 2021 to Point Nepean Shipwrights for work done on Cockle Bay Marine Pty Ltd Yacht, Island Dreaming. The work consisted of purchasing and installing new sails at a cost of $7,000 and cleaning the hull (bottom of the yacht) which is done each year at a cost of $1,000. Disregard GST.
Required:
How would Cockle Bay Marine Pty Ltd report the $8,000 paid on 9 May 2021 in the financial statements?
Step by Step Solution
3.50 Rating (147 Votes )
There are 3 Steps involved in it
Step: 1
Cockle Bay Marine Pty Ltd would report the 8000 paid to Point Nepean Shipwrights for work on the yac...
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
Business Law Principles for Today's Commercial Environment
Authors: David P. Twomey, Marianne M. Jennings, Stephanie M Greene
5th edition
1305575156, 978-1305887657, 1305887654, 978-1305575158
