The table below provides information from the Trial Balance showing the cost and accumulated depreciation for Non-Current
Question:
The table below provides information from the Trial Balance showing the cost and accumulated depreciation for Non-Current Assets as at 31st December 2020
DR | CR | |
Vehicles - Cost | 120,000 | |
Vehicles - Acc Dep’n as at 31st December 2020 | 70,000 | |
Computer Equipment – Cost | 30,000 | |
Computer Equipment – Acc Dep’n as at 31st December 2020 | 18,000 | |
a)Depreciation is up to date as of 31st December 2020:
Vehicles – Reducing Balance 10%
Computers – Straight Line over 5 years with £2,000 Residual Value
b)On 31 December 2020, the company sold a vehicle and received £30,000 in the business bank account. The Vehicle was originally purchased on 31st December 2018 for £40,000.
c)On 31st December 2020, computer equipment was also sold for £5,000 to KL Ltd and the company have been given 30 days to pay. The computer equipment was original purchased on 31st December 2017 at a cost of £8,000.
Required
Complete the journals required to process these transactions and confirm whether a gain/loss on disposal was processed.
What is the brought forward balance of the Vehicles and Computer Equipment cost and Acc Dep’n at the year-end 31st December 2020?
Intermediate Accounting
ISBN: 978-0132162302
1st edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella