Required: Canada Ltd purchased a vehicle costing $52 000. It is expected to have a residual value of $12 000 at the end of its useful life of 4 years or 200 000 kilometres. Required A. Assume the vehicle was purchased on 1 July 2019 and that the accounting period ends on 30 June. Calculate the depreciation expense for the year 2019-20 using each of the following depreciation methods: 1. straight-line 2. units of production (assume the van was driven 78 000 kilometres during the financial year). 3. diminishing balance (use 31%) Question 5 8 Marks Required: From the information given, complete the table given below: Prepare an income statement and a statement of changes in equity for the year ended 30 June 2021. Prepare a balance sheet as at 30 June 2021. The financial year for Canada Services ends on 30 June. Use the following information and make the necessary adjusting entries at the end of the financial year. Answer the question using the schedule given below. 1.On 15 February, Canada borrowed $16 000 from ABC Bank at 8% interest. The principal and interest are payable on 15 August. 2. Rent of $3 600 for the 6-month period ending 31 July is due to be paid in August. 3. The annual depreciation on equipment is estimated to be $7 200. The 1 July balance in the Accumulated Depreciation account was $15 600. 4. Canada Services purchased a 1-year insurance policy on 1 March of the current year for $660. A 3-year policy was purchased on 1 November of the previous year for $2700. Both purchases were recorded by debiting Prepaid Insurance. 5. The business has two part-time employees who each earn $220 a day. They both worked the last 3 days in June for which they have not yet been paid. 6. On 1 June, a customer paid the Canada Services $2 100 in advance for doing for the next 3 months. This was recorded by a credit to Unearned Revenue. 7. Water for June of $850 is unpaid and unrecorded. 8. The supplies account had a $280 debit balance on 1 July. Supplies of $1 560 were purchased during the year and $190 of supplies are on hand as at 30 June. Entry Account Balance Balance in Dollar reported Balance the effect of in 30/6 sheet account adjustin Balance classificatio before g sheet n adjustmen entries t If given The Amount Appear in the amount in the the balance amount of the balance sheet adjustm sheet ent Exa mple Name of account - 1 2. 3. 4. 5. 6. 7. 8