Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please follow this format 23. Asset sold on credit (including GST) and purchaser pays deposit. On 30 November 2017 a finishing machine was sold. Its

please follow this format

image text in transcribed

image text in transcribed

23. Asset sold on credit (including GST) and purchaser pays deposit. On 30 November 2017 a finishing machine was sold. Its capital cost was $25,000 and accumulated depreciation was $13,000 at date of sale. The machine had been depreciated since purchase at 22.5% pa using the straight line method. The machine was sold on credit to Jake Strong for $14,300 (including GST) with the purchaser paying a $1,000 deposit. Balance date is 30 June. Required: (a) Record General Journal entries to account for the sale of the finishing machine and post to the relevant ledger accounts. (b) Transfer the profit or loss on disposal to the Profit and Loss account at 30 June. \begin{tabular}{|l|l|l|l|c|} \hline \multicolumn{3}{|c|}{ Accumulated Depreciation } & 168 \\ \hline 30/11/17 & Balance & & & 280,000CR \\ & & & & \\ \hline & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|c|c|c|} \hline \multicolumn{2}{|c|}{ Bank } & 100 \\ \hline 30/11/17 & Balance & & & 20,000 DR \\ & & & & \\ \hline \end{tabular} Accounts Receivable - Strong 110.01 \begin{tabular}{|l|l|l|l|l|l|} \hline & & & & & \\ \hline & & & & & \\ \hline \end{tabular} \begin{tabular}{|l|l|l|l|l|l|} \hline \multicolumn{3}{|c|}{ Depreciation } & 770 \\ \hline & & & & & \\ \hline & & & & \\ \hline \end{tabular} \begin{tabular}{|l|l|l|l|l|l|} \hline & \multicolumn{3}{|c|}{ Disposal } & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline \end{tabular} \begin{tabular}{|l|l|l|l|l|l|} \hline \multicolumn{3}{|c|}{ Profit on Disposal } & 775 \\ \hline & & & & & \\ \hline \end{tabular}

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

Introduction To Government And Not For Profit Accounting

Authors: Martin Ives, Laurence Johnson, Joseph R. Razek, Gordon A. Hosch

6th Edition

0132366355, 978-0132366359

More Books

Students also viewed these Accounting questions

Question

Verify the formula given for the Pi of the M/M/k.

Answered: 1 week ago

Question

List the major prohibitions of the Canadian Human Rights Act .

Answered: 1 week ago