Selected transactions of Coromandel Ltd are given below. The company uses straight-line depreciation and calculates depreciation expense to the nearest whole month. 2018 Jan. Purchased from Brampton Ltd a bottle washer (Serial No. 17538x) for $48,000 cash (net of GST). The useful life of the machine is 5 4 years and its residual value is expected to be $9,000. April Purchased from Granada Ltd a dryer (Serial No. PY43121) for $43,000 cash (net of GST). The machine has a useful life of 6 years and a 10 residual value of $10,000. * Question 14 ZYour answer has been saved and sent for grading. See Gradebook for score details. Prepare journal entries to record the purchase of the assets and to record depreciation expense on 30 June 2018 and 2019, the end of the company's reporting periods. (Enter all debit entries first, followed by all credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Coromandel Ltd General journal (extract) Date Particulars Debit Credit 2018 Jan. 4 Machinery 48000 GST receivable Cash at bank To recurs purchase of battle washer) 48000 Apr. 10 Machinery 43000 GST receivable 43000 3900 Cash at bank To record purchase of dryer) June 30 Depreciation expense Accumulated depreciation machinery (To record depreciation on machinery) 2019 June 30 Depreciation expense 3900 1500 1500 Accumulated depreciation - machinery (To recurs depreciation on machinery) Open a machinery account (no. 230) and an accumulated depreciation - machinery account (no. 231), and prepare subsidiary property and plant records for the two assets. Post the journal entries to the general ledger accounts and to the subsidiary property and plant records. (Leave blank any answer fields that do not require an answer. Round answers to o decimal places, e.g. 5,275.) Account Machinery Date Explanation Post rel. 2018 No. 230 Balance Debit Credit 41 1014 Account Date Explanation 2018 Accumulated depreciation - machinery No. 231 Post ref. Debit Credit Balance 30/6 2019 2016 Property and plant record Item Bottle washer Account no. 230 231 Serial no. 17538X General ledger account Machinery Purchased from Brampton Ltd Useful life 5 years Residual value $9,000 Depreciation p.a. $7,800 Depreciation method Straight-line Asset Accumulated depreciation Date Explanation Post ref. Dr Cr Bal. Dr CrBal. 4/1/18 30/6/18 30/6/19 Item Serial no. Purchased from Useful life Depreciation p.a. Property and plant record Dryer Account no. 230 231 PY43121 General ledger account Machinery Granada Ltd 6 years Residual value $10,000 $5,500 Depreciation method Straight-line Asset Accumulated depreciation Explanation Post ref. Dr Cr B al. Dr Cr Bal. Date 10/4/18 30/6/18 30/6/19
