Question
Patisserie Services purchased a trailer on 1 July 2019 for $26 200. It was estimated to have a useful life of 5 years and a
Patisserie Services purchased a trailer on 1 July 2019 for $26 200. It was estimated to have a useful life of 5 years and a residual value at the end of that time of $2800.
Required
- What is the depreciation expense for the year ended 30 June 2020?
- What is the balance of the Accumulated Depreciation account at the end of June 2021?
- What is the carrying amount in the statement of financial position at 30 June 2020 and at 30 June 2021?
- Explain why an entry is made to the Accumulated Depreciation account rather than to the Trailer account.
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Managerial Accounting Tools for Business Decision Making
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
7th edition
978-1118334331, 1118334337, 978-1119036449, 1119036445, 978-1119036432
