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 Chee Yong Chaw began his business on 1 July 2016. The business balances its books at month-end and uses special journals and the periodic inventory system. Transactions for July 2016 were as follows: July Chee Yong Chaw invested $36,720 cash and $21,420 office equipment into the business. July 2 July Purchased inventory from L Cao on account for $9,180 plus GST; terms 2/15, n/30. Paid July rental of $3,670 plus GST; by interbank transfer to Prime Properties Ltd. Purchased inventory from Difabio Ltd on account for $7,450 plus GST; terms n/30. July Sold inventory to ] Ellis on account for $2,040 plus GST; terms 2/15, n/30. July Received July rental of $920 plus GST for space sublet to Perth Services. July Purchased stationery supplies for $2,040 plus GST, cheque no. 124. Purchased inventory for cash $2,020 plus GST. July 10 July Sold inventory to Giola Ltd on account for $4,590 plus GST; terms 2/10, n/30. 13 July Purchased inventory from O Hee on account for $6,120 plus GST; terms 2/10, n/30. 14 July Paid L Cao for 2 July purchase with an interbank transfer. July Received $2,199 from ) Ellis in payment of her account. Sold inventory to O Kaddish on account for $4,690 plus GST; terms 2/10, n/30. Received $4,948 from Giola Ltd in payment of its account. Sold inventory to Modra Ltd on account for $3,670 plus GST; terms 2/10, n/30. Paid O Hee for 14 July purchase; cheque no. 125. July 21 July 22 July 23 July Purchased inventory from L Cao on account for $5,610 plus GST; terms 2/15, 1/30. Sold Inventory for cash, $2,960 plus GST. 26 July Returned defective inventory that cost $1,220 to L Cao. 28 Sold merchandise to I Nizic on account for $8,360 plus GST; terms 2/10, n/30. July 29 July 30 Purchased merchandise from A Romeo on account for $1,840 plus GST, terms 1/10, 1/30. Paid month's salary of office assistant, $3,260 by Interbank transfer. Cash recipts journal Debits Credits Post ref. Account Cash at bank Disc, all'd GST collect Sales GST collect Alcs. rec able Other are Date 2016 July ! 36720.00 920.00 V 2199.00 July 7 Rent rev July 19 Ellis July 21 Giola Ltd July 26 Sales V 4948.00 3256.00 48043.00 Cash payments journal Account Ch. Post O. rel. Other Ace's payable Purchases GST recable Cash at hank Discree'd GST receivable Date 2016 July 2 Rent exp a y July & Stationery exp July 10 Purchases July 15 L Can July 22 July 30 Salary exp 1 24 - BPay 125 V Tif General journal Date 2016 Particulars Debit Credit July 1 {Iquipment contributed by twner July 28 (Return of detective goods) Purchases journal Post ref. Purchascs Account Terms GST Receivable Accounts Payable Date 2016 July 1 L Can July 3 Diabio Ltd July 14 Hee July 23 (L C0 July 10 A Romeo 2/15, :30 0:30 V 2:10.1130 V 2:15, 17:30 v 110,w20V Sales journal Account Terms Postres. Sales GST payable Accounts receivable Date 2016 2/15, 6:30 2/10, 11:30 V July 6 Ellis July 13 Giola Ltd July 19 Kaddish July 21 Modra Ltd July 29 I Nizic V 2/10, 14:30 2:10, 230 2/10,630 V
