Journal Entries, Un adjusted and adjusted entries

You spent $748 incl. GST on miscellaneous office supplies at Officeworks. You paid for these from your bank accoun Office supplies on hand at 30th May is $341 incl. GST.

You spent $41,800 incl. GST on a plastic welding machinery and paid for it by using your bank account. You estimate that the machinery will have a useful life of 5 years, during which you are planning to produce 16,500 units of new toys. The residual value of the machinery is $5,000. Actual number of units of toys that will be produced over the next 12 months will be 1,200 units Depreciation expense - plastic welding machinery, using the units of production method.

You spent $3,113 incl. GST on a computer at Digi-Com and paid for it from your bank account. You estimate it will have a useful life of 3 years and be worth $354 at the end of the 3 years. Computer is depreciated using the diminishing balance method and the rate of depreciation is 50%. Record the purchase of the computer on this date.

Depreciation expense - computer, using the diminishing balance method