Henry M Thomas purchased machinery on credit with a total installed cost of $302 500 ($275 000
Question:
Henry M Thomas purchased machinery on credit with a total installed cost of $302 500 ($275 000 + $27 500 GST). It has an estimated residual value of $5500 ($5000 + $500 GST) and was commissioned on 1 March 2022. The units of use depreciation method is used, based on a total usage of 50 000 units. The annual usage is expected to be from the year commencing:
1 March 2022, 9000 units 1 March 2023, 14 000 units 1 March 2024, 17 000 units 1 March 2025, 10 000 units.
Prepare:
a workings indicating the unit usage for the years ended 30 June 2022 to 2026, assuming constant usage within each year b a depreciation worksheet for the units of use depreciation method to 30 June 2026 c the balance day depreciation adjustment journal for 30 June 2023 d an extract income statement for the year ended 30 June 2024, and e an extract balance sheet as at 30 June 2025.
Step by Step Answer:
Accounting An Introduction To Principles And Practice
ISBN: 9780170403832
9th Edition
Authors: Edward A. Clarke, Michael Wilson