Question
please give answer in excel copy Question 1 On 2 January 2019, McGrath Ltd purchased a machine for $36 000 with a useful life of
please give answer in excel copy
Question 1 On 2 January 2019, McGrath Ltd purchased a machine for $36 000 with a useful life of 5 years and a residual value of $6000. In order to keep the machine running properly, the company has performed regular maintenance and repairs each year since its acquisition. In the fourth year (2022), ordinary repairs amounted to $900.
On 3 January 2023, McGrath Ltd decided to completely overhaul the machines major operating parts at a cost of $9600, after which the machine is expected to have a useful life of 4 more years and a revised residual value of $4000. McGrath Ltd uses the straight-line depreciation method. The carrying amount of the parts replaced was considered to be $400.
Required Prepare general journal entries to record: a. the purchase of the machine on 2 January 2019 b. the day-to-day repairs on the machine in 2022 c. the overhaul of the machine on 3 January 2023 d. depreciation expense on the machine on 31 December 2023
Question 2
On 1 January 2014 Alex had a motor vehicle with an original cost of $17000 on which depreciation of $6800 had been provided.
On 1 April 2014 he bought a new vehicle, costing $24 000. He sold the old one and received a cheque for $9400.
Alex provides depreciation on motor vehicles at the rate of 40% per annum on the reducing (diminishing) balance basis. He allows a full years depreciation in the year of purchase and none in the year of disposal.
Required:
Prepare the accumulated depreciation account and motor vehicle disposal account for the year ended 31 December 2014. Balance the account(s) where necessary and bring down the balance(s) on 1 January 2015
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