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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. 4

Selected transactions of Coromandel Ltd are given below. The company uses straight-line depreciation and calculates depreciation expense to the nearest whole month.

2018Jan. 4 Purchased from Brampton Ltd a bottle washer (Serial No. 17538X) for $40,000 cash (net of GST). The useful life of the machine is 5 years and its residual value is expected to be $7,000.

April 10 Purchased from Granada Ltd a dryer (Serial No. PY43121) for $36,000 cash (net of GST). The machine has a useful life of 6 years and a residual value of $8,000.

A.

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

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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 GST receivable Cash at bank (To record purchase of bottle washer) Apr. 10 Machinery GST receivable Cash at bank (To record purchase of dryer) June 30 Depreciation expense Accumulated depreciation - machinery (To record depreciation on machinery) 2019

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