Question
Presented here are selected transactions for Zhou Ltd for the year ended 31 December 2016: Jan. 1 Scrapped a piece of machinery that was purchased
Presented here are selected transactions for Zhou Ltd for the year ended 31 December 2016:
Jan. 1 | Scrapped a piece of machinery that was purchased on 1 January 2006 at a cash price of $66,660 including 10% of GST. The machinery had a useful life of 10 years with no residual value. | |
June 30 | Sold a computer that was purchased on 1 January 2013 for $36,960 cash including 10% of GST. It had a useful life of 6 years with no residual value. The computer was sold for $14,740 cash including 10% of GST. | |
Dec. 31 | Discarded a delivery truck that was purchased on 1 January 2012 for $24,200 cash including 10% of GST and was depreciated based on a 6-year useful life with a $2,200 residual value. |
Purchase price of machinery, computer and delivery truck includes 10% of GST. Proceeds from sale of computer includes 10% GST. Required Journalise all entries required on the listed dates, including entries to update depreciation, where applicable, on assets disposed of. Zhou Ltd uses straight-line depreciation. (Assume depreciation is up to date as of 31 December 2015 and the GST rate is 10%.) (Enter debit entries first followed by credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Zhou Ltd General journal | |||
Date | Account and explanation | Debit $ | Credit $ |
2016 | |||
Jan. 1 | |||
June 30 | |||
June 30 | |||
Dec. 31 | |||
Dec. 31 | |||
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