Question 5 (15 marks) - Accounting for non-current assets Tidy Sheets Trading is a business that manufactures linen products. The company's accounts include Factory buildings, Office buildings, Office equipment, Delivery truck and Dyeing & Sewing machines, with a separate Accumulated Depreciation account for each of them. During the year ended 30 June 2014, the business completed the following transactions: Sep1Purchased a new office equipment on credit at the price of $12 000. The 2013 equipment had a useful life of 5 years and residual value of $2 000 Feb 15 Purchased land at the price of $70 000. In relation to the purchase, solicitor's fees 2014 incurred were S1 100 and $700 was spent on removing a warehouse on the land. All of these were paid in cash. Mar 1 Sold an office building for S370 000 cash. The office building cost S555 000 and 2014 had a 40-year useful life and a residual value of S75 000. The building was depreciated on a straight-line basis and its accumulated depreciation up to 30 June 2013 was S255 000 Apr 30 Scrapped a delivery truck that was purchased on 1 May 2004. The delivery truck 2014 cost S55 000 and had a useful life of 10 years with no residual value. June 30 |Recorded depreciation, as detailed below: 2014 1. The office equipment, purchased on 1 Sep 2013 (as mentioned above), is depreciated using the diminishing balance method. 2. Dyeing and Sewing machines, costing $20 000, are depreciated by the units- of-production method. The machines have a residual value of zero and are estimated to have a useful life of five years or 5 000 hours. For the year ended 30 June 2014, the machines were used for 900 hours 3. Factory buildings, costing $140 000, are depreciated by the straight-line method over 20 years with no residual value. The buildings had been depreciated up to 30 June 2013 Required Journalise all the above transactions for Tidy Sheets Trading for the year ended 30 June 2014 Ignore GST. Narrations are not required