Question

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 Purchased from Brampton Ltd a bottle washer (Serial No. 17538X) for $47,000 cash (net of GST). The useful life of the machine is 5 years and its residual value is expected to be $8,000. April 10 Purchased from Granada Ltd a dryer (Serial No. PY43121) for $41,000 cash (net of GST). The machine has a useful life of 6 years and a residual value of $10,000.

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. (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.)

Answer 1

Answer Page No ③ A Towinal entries | Credit Debit $ 47000 647000 Aprilia $41,000 Date Portiular Janul Machinery 2018 GST receivable Cash at banks Cto record purchase of bottle washer Machinery GST receivable Cash at bank To record purchase of dryer Jundo Depreciation expense Accumulated depreciation- machinery ( to record depreciation on machin) $41,000 $3900 $ 3900 - ery 2019 June 30 Depreciation expense Accumulated depreciation machinery Co record depreciation on machinery $1292 - $1292 2018, June 30, depreciation expense = (47000 - 8000) x 6 5 yrs = $ 3900 2019, June 30, depreciation expense -(41000 –10,000); } = $1292 Gyro