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See Through Company, with financial year ends on 31 December, had the following transactions in respect of its non-current assets: 2019 Bought a vehicle
See Through Company, with financial year ends on 31 December, had the following transactions in respect of its non-current assets: 2019 Bought a vehicle $200,000 by cheque. Bought an equipment $80,000 by cheque. 01 May 01 October 2020 30 June 01 November Bought equipment $48,000 in cash. Bought a vehicle $120,000 by cheque. Additional information: (i) The equipment is depreciated at an annual rate of 20% under the straight line method. (ii) The vehicles are depreciated at an annual rate of 40% under the reducing balance method. (iii) It is the company's policy to charge a full year's depreciation on assets in existence at the end of each year, giving a full year's depreciation even though the asset was bought half way. Required: Prepare the following accounts to record the transactions for the year ended 31 December 2019 and 31 December 2020 respectively, and balance off the accounts of: (a) Vehicles; (b) Equipment; (c) Accumulated Depreciation: Vehicles; and (d) Accumulated Depreciation: Equipment.
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