On 1 July 2023, ADS Luxury Ltd acquired a large delivery van with a list price of $142000 but was able to negotiate a 7% discount for cash payment. ADS Luxury Ltd also paid cash of $9200 for mandatory third-party insurance, $7900 for compulsory stamp duty and $16500 for a 8-year insurance policy covering the life of the van. The delivery van has a $23000 residual value and ATO rules state that it must be depreciated using the Reducing Balance method (at 2 x straight-line rate), over its 8-year useful life. Required: Journalise all transactions relating to the delivery van purchase on 1 July 2023.

answer

1-july

dr. delivery van $149,160.00

Cr. Cash $149,160.00

Dr. prepaid insurance $16,500.00

Cr. Cash $16,500.00

where do you get the $149,160.00?