R Gilmour & Associates purchased and installed on credit a computer system that was commissioned on 1
Question:
R Gilmour & Associates purchased and installed on credit a computer system that was commissioned on 1 April 2021 for
$66 000 ($60 000 + $6000 GST). It is expected that the computer system has a useful life of four years and residual value of $6600 ($6000+ $600 GST). Gilmour uses the straight line depreciation method and the business closes its accounts on 30 June.
After a time, the system proved inadequate and was sold for $16 500 ($15 000 + $1500 GST) cash on 1 October 2023.
A new system, purchased on credit, was installed and operational on 1 October 2023. It cost $82 500 ($75 000 + $7500 GST), is to be depreciated at 33.33% p.a. using the straight line method and there is an estimated residual value of $3300
($3000 + $300).
Prepare:
a depreciation worksheets from commencement until disposal occurs or the asset is fully depreciated b relevant general ledger accounts associated with the assets, depreciation and their disposal, including the result of that disposal to 30 June 2024 c an extract income statement for the year ended 30 June 2024, and d extract balance sheets as at 30 June 2023 and 2024.
Step by Step Answer:
Accounting An Introduction To Principles And Practice
ISBN: 9780170403832
9th Edition
Authors: Edward A. Clarke, Michael Wilson