On 1 July 2014 Johnny Walker bought a machine for $18,000. He depreciates machinery at a rate of 20% per annum on the reducing balance basis. Depreciation is charged on a pro- rata basis in the year an asset is purchased. His year-end is 31 October. Depreciation charge on the machine for the year to 31 October 2015 would be recorded as: Cr Depreciation Expense $ 3 600 b. Dr Depreciation Expense $ 3 360 O C Cr Accumulated Depreciation $1 200 Dr Machinery $ 18 000 O d. Dr Depreciation Expense $14 400 Dr Accumulated Depreciation $ 1 4 400 Cr Machinery $18.000 Cr Accumulated Depreciation $ 3 360

On 1 July 2014 Johnny Walker bought a machine for $18,000. He depreciates machinery at a rate of 20% per annum on the reducing balance basis. Depreciation is charged on a pro-rata basis in the year an asset is purchased. His year-end is 31 October. Depreciation charge on the machine for the year to 31 October 2015 would be recorded as: a. Cr Depreciation Expense $3600 Cr Machinery $18000 b. Dr Depreciation Expense $3360 Cr Accumulated Depreciation $3360 c. Dr Machinery $18000 Cr Accumulated Depreciation $1200 d. Dr Depreciation Expense $14400 Dr Accumulated Depreciation $1.4400