Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On 1st January 20X1, WWW Limited (WWW) purchased new machinery for $210 560. WWW paid some directly attributable cost to bring this machinery into working

On 1st January 20X1, WWW Limited (WWW) purchased new machinery for $210 560. WWW paid some directly attributable cost to bring this machinery into working condition. In particular, WWW paid the freight cost of $3 580 and the installation cost of $4 843. This machine is expected to have a useful life of ten years with a residual value of $2 106. The pattern of economic benefits from using this machinery is constant. Therefore, it is decided that the straight-line depreciation method will be used. Ignore GST.

a) Determine the cost of the machine

b) Assuming that year ends on 30 June, record the journal entry of depreciation expenses on 30 June 20X3

c) Calculate the accumulated depreciation balance at the end of the fourth year

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles of Auditing and Other Assurance Services

Authors: Ray Whittington, Kurt Pany

20th edition

77729145, 978-1259295430, 1259295435, 978-0077729141

More Books

Students also viewed these Accounting questions