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- presented below are selected transactions of sensational beverages ltd for...
Question: presented below are selected transactions of sensational beverages ltd for...
Question details
Presented below are selected transactions of Sensational Beverages Ltd for Year ending 31/12/2020
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January 1 |
Scrapped machinery that was purchased on 1 January 2010. The machine cost $165,000 and had a useful life of 10 years with no residual value |
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April 30 |
Sold a coffee machine for $10,000 cash. The coffee machine was purchased on 1 January 2014 and cost $36,000. The coffee machine was depreciated based on a 10 year useful life with a $6,000 residual value |
|
June 30 |
Sold a computer that was purchased on 1 January 2016. The computer cost $64,000, had a useful life of 8 years with no residual value. The computer was sold for $36,000 |
|
December 31 |
Purchased equipment for $85,000 cash. Useful life of 10 years with no residual value |
Required:
Prepare the journal entries to record the above transactions for Sensational Beverages Ltd, which has a financial year end of 31 December 2020 and uses the straight-line method of depreciation. Ignore GST
Narrations are not required.
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