On December 31,2017 < Jim Jones purchased a machine on credit for $330,000 ($300,000 Plus $30,000 GST) It had an expected useful life of four years and a expected residual of $22,000 ($20,000 Plus $2,000 GST)

Required

a) Using straight line method of depreciation, complete the depreciation worksheet for the financial year ending June 30, 2018,2019,2020,2021,2022.

b) Jim Jones has decided to use the reducing balance method to depreciate the machine For all further calculations use the reducing balance method

complete the depreciation worksheets for the finical years ended June 30,2018,2019,2020 to 28/2/2021 using the reducing balance method. The asset was sold on 28/2/2021 for $88,000 ($80,000 Plus $8,000 GST) The rate of depreciation is 30% p.a

c) using the information from part b prepare for the period December 2017 to June 30,2019 the following general ledger accounts

Machine account

accumulated depreciation - machine

d) produce appropriate general journal entries to record the sale of machine on 28th February 2021 for $88,000 cash ($80,000 Plus $8,000 GST)