Question
Forte Caterers is a corporate catering and events company in Sydney. With offices slowly reopening and businesses holding more in-person events, Forte Caterers has required
Forte Caterers is a corporate catering and events company in Sydney. With offices slowly reopening and businesses holding more in-person events, Forte Caterers has required an additional van to keep up with catering demands.
Forte Caterers acquires a van for the advertised price of $35000. The business also had to pay $1050 for vehicle related state stamp duty costs, $800 for registration costs and $750 for compulsory transportation insurance. Forte Caterers expects to use the truck for 10 years, and estimates that it will have a salvage value of $2000 at the end of its 10-year use. Cash was used to pay for all of the above costs. The accounting department determines that the Reducing Balance method is the best method to use for depreciating the van, and the company uses the simplified method as per the ATO = 2.0 * straight line estimate to do so (NOT the formula-based method).
Required: Journalise all the transactions related to the purchase of the delivery van
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