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On 1 July 2016, Happy Sdn Bhd purchased a machine and capitalised a cost of RM3,800,000. The cost was arrived as follows: Invoice price Freight
On 1 July 2016, Happy Sdn Bhd purchased a machine and capitalised a cost of RM3,800,000. The cost was arrived as follows: Invoice price Freight charges Installation costs Maintenance charge RM3,500,000 RM60,000 RM40,000 RM200,000 It is the policy of the company to depreciate its machine over eight (8) years using straight-line method. The depreciation expense for the year ended 30 June 2017 and 30 June 2018 have been provided based on the information above. No depreciation has yet been provided for the year ended 30 June 2019. Required:- Prepare the appropriate journal entries (if any) (excluding narrations) that should be recorded for the financial year ending 30 June 2019. [10 marks]
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