Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Question 3 (13 marks) Please note that Part A, Part B and Part C are not related. Part A (3 Marks) XYZ Ltd purchased the
Question 3 (13 marks) Please note that Part A, Part B and Part C are not related. Part A (3 Marks) XYZ Ltd purchased the following two machines. Due to different nature of these machines, different depreciation methods are applied. Machine Acquired 1 Jan 2014 2 1 May 2015 Cost $56 000 42 000 Residual value $5 000 2 000 Useful life 5 years | 20 000 hours Method Straight-line Units-of-production The accounting period ends on 30 June. Ignore GST. For the financial year 2017-2018, actual hours of using Machine 2 was 4 000. Required: 1) Calculate the depreciation expenses of Machine 1 and Machine 2 for the year ended 30 June 2018. (2 Marks) 2) Prepare the journal entry to record depreciation expense on Machine 1 for the year ended 30 June 2018. (1 Mark)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started