Question
Trev's Gardening Services purchased a trailer on 1 July 2019 for $26 200. It was estimated to have a useful life of 5 years and
Trev's Gardening Services purchased a trailer on 1 July 2019 for $26 200. It was estimated to have a useful life of 5 years and a residual value at the end of that time of $2800.
Required
(a)What is the depreciation expense for the year ended 30 June 2020?
(b)What is the balance of the Accumulated Depreciation account at the end of June 2021?
(c)What is the carrying amount in the statement of financial position at 30 June 2020 and at 30 June 2021?
(d)Explain why an entry is made to the Accumulated Depreciation account rather than to the Trailer account.
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Accounting Information Systems
Authors: Cynthia D Heagy, Constance M Lehmann
7th Edition
1111219516, 978-1111219512
