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  3. 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

  

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

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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