Question
Spots and Stripes Pty Ltd manufactures decorative cushions. Presented below are selected transactions of Spots and Stripes Pty Ltd for Year ending 31/12/2022 ( 6
Spots and Stripes Pty Ltd manufactures decorative cushions. Presented below are selected transactions of Spots and Stripes Pty Ltd for Year ending 31/12/2022 ( 6 Marks)
1/1/2022 | Scrapped machinery that was purchased on 1 January 2010. The machine cost $220,000 and had a useful life of 10 years with no residual value |
30/06/2022 | Sold a computer that was purchased on 1 January 2017. The computer cost $64,000, had a useful life of 8 years with no residual value. The computer was sold for $32,000 |
30/09/2022 | Cash purchase of a Photocopier for the office. Purchase price was $12,000 with a useful life of 5 years and no residual value |
Required:
Prepare the journal entries to record the above transactions for Spots and Stripes Pty Ltd, which has a financial year end of 31 December 2022 and uses the straight-line method of depreciation. IGNORE GST and Narrations are NOT required
(Narrations in the general journals are not required. Both account names and figures should be correct in order to award marks.
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