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STAR Ltd ' s financial year ends on 3 1 December 2 0 2 2 . On 1 October 2 0 2 2 , STAR
STAR Ltds financial year ends on December On October STAR Ltd purchased a machine. To prepare the machine for use, the following payments were made on the same day: Cash payment $ Transportation cost Installation cost Special platform required for installation Machine operators salary for the month This refers to the salary of the machine operator who was recruited in September to operate the machine when it is operational. The company estimates the machine will be used for five years and have a $ residual value. Question a Identify and compute the cost of the machine to be recognised. Justify your answer. Question b Journalise the transactions. Assume the above payments are paid in cash. Narration is not required. Question c Compute the depreciation expense for the year ended December using the straightline method. Round your answer to the nearest $ Question d Compute the depreciation expense for the year ended December using the double declining balance method.
STAR Ltds financial year ends on December
On October STAR Ltd purchased a machine. To prepare the machine for use, the following payments were made on the same day:
Cash payment $
Transportation cost
Installation cost
Special platform required for installation
Machine operators salary for the month
This refers to the salary of the machine operator who was recruited in September to operate the machine when it is operational.
The company estimates the machine will be used for five years and have a $ residual value. Question a Identify and compute the cost of the machine to be recognised. Justify your answer.
Question b Journalise the transactions. Assume the above payments are paid in cash. Narration is not required.
Question c Compute the depreciation expense for the year ended December using the straightline method. Round your answer to the nearest $
Question d Compute the depreciation expense for the year ended December using the double declining balance method.
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