Branson Ltd owns two delivery vehicles (each with a residual value of $5000 and useful life of
Question:
Branson Ltd owns two delivery vehicles (each with a residual value of $5000 and useful life of 4 years) and uses the straight‐line method of depreciation. The business closes its accounting records annually on 30 June. The following events and transactions occurred during the first 3 financial years. Ignore GST.
Required
Prepare entries (in general journal form) to record the transactions of Branson Ltd as they relate to both vehicles to 30 June 2022.
Transcribed Image Text:
2019-2020 July 1 1 June June 30 2020-2021 July 1 Purchased a delivery truck from Mangrove Mountain Motors for $60 000 cash plus stamp duty of $620, and registration and third-party insurance of $840. Made minor repairs to the truck for cash at a cost of $420. Recorded annual depreciation. Purchased a delivery van from Northern Motors for cash, $45 000. This van was a used vehicle which was expected to last 4 years from the date of purchase. Fitted four new tyres to the van at a cash cost of $1320. June 30 Recorded depreciation on both truck and van. 2021-2022 July 1 June 30 Paid $3700 for an overhaul of the motor of the delivery truck. This expenditure is expected to extend the useful life by 1 year. The parts replaced in the truck were considered to have a carrying amount of $2000. Installed a two-way radio in the delivery van at a cost of $1600 to improve efficiency. It is anticipated the radio will have a useful life of 6 years with no residual value. This expenditure on the radio will not increase the useful life of the delivery van. Recorded depreciation on both truck and van.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (QA)
Answered By
JAPHETH KOGEI
Hi there. I'm here to assist you to score the highest marks on your assignments and homework. My areas of specialisation are:
Auditing, Financial Accounting, Macroeconomics, Monetary-economics, Business-administration, Advanced-accounting, Corporate Finance, Professional-accounting-ethics, Corporate governance, Financial-risk-analysis, Financial-budgeting, Corporate-social-responsibility, Statistics, Business management, logic, Critical thinking,
So, I look forward to helping you solve your academic problem.
I enjoy teaching and tutoring university and high school students. During my free time, I also read books on motivation, leadership, comedy, emotional intelligence, critical thinking, nature, human nature, innovation, persuasion, performance, negotiations, goals, power, time management, wealth, debates, sales, and finance. Additionally, I am a panellist on an FM radio program on Sunday mornings where we discuss current affairs.
I travel three times a year either to the USA, Europe and around Africa.
As a university student in the USA, I enjoyed interacting with people from different cultures and ethnic groups. Together with friends, we travelled widely in the USA and in Europe (UK, France, Denmark, Germany, Turkey, etc).
So, I look forward to tutoring you. I believe that it will be exciting to meet them.
3.00+
2+ Reviews
10+ Question Solved
Related Book For
Financial Accounting
ISBN: 9780730363217
10th Edition
Authors: John Hoggett, John Medlin, Keryn Chalmers, Claire Beattie, Andreas Hellmann, Jodie Maxfield
Question Posted:
Students also viewed these Business questions
-
Branson Ltd owns two delivery vehicles (each with a residual value of $5000 and useful life of 4 years) and uses the straight-line method of depreciation. The business closes its accounting records...
-
Coomans Ltd, which started operations on 1 October 2013, prepared the following account balances as at 30 June 2016: Machinery (at cost) Accumulated Depreciation Machinery Vehicles (at cost;...
-
A plank with a mass M = 6.00 kg rides on top of two identical solid cylindrical rollers that have R = 5.00 cm and m = 2.00 kg (Fig. P10.86). The plank is pulled by a constant horizontal force F of...
-
Choose a company with which you are familiar that manufactures a product or provides a service. In this activity, you will be making reasonable estimates of the costs and activities associated with...
-
Which firms look best for someone wishing to buy stocks on margin?
-
Tom Bonacci brought his Jeep to Brewer Service Station to investigate a strange noise the vehicle was making. The Jeep was raised up on an automobile lift so that Brewer employee Paul Gebing could...
-
Omega Company is considering three capital expenditure projects. Relevant data for the projects are as follows. Annual income is constant over the life of the project. Each project is expected to...
-
Blood Money" podcast: What are the uses of human plasma? What is the argument for and against allowing private companies to pay for plasma? Does allowing payment for human bioproducts exploit...
-
Brunswick Ltd operates four types of equipment. Because of their varied functions, management has decided that four different depreciation methods will be used to determine depreciation charges....
-
Prestige Printing Ltd commenced business on 1 July 2019. On 5 July 2019, a printing machine was purchased for $35 000, payable in two equal instalments due on 1 August and 1 October 2019. Transport...
-
The most recent financial statements for Bello Co. are shown here: Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 30 percent dividend payout...
-
state two aspects of the finance world that you find to be socially unjust. Importantly, state WHY you think it violates social justice.
-
One of the methods that allows individual investors to gain exposure to commodities without directly owning physical assets is: Question 13Answer a. Commodity futures b. Exchange-traded funds (ETFs)...
-
Under current guidance are broker-dealers required to risk assess all third parties who use any confidential client information in the course of the services provided?
-
swanson's expects a 9.0% increase in sales over last year's volume of $230000. Last year, 20% of sales occurred in May. Calculate the planned sales of May keeping in mind that this May has 22 selling...
-
What is one advantage of investing directly in commodities instead of investing in companies that use them? Question 37Answer a. Lower transaction costs b. Higher potential returns c. Diversification...
-
A toroidal solenoid has a mean radius r and a cross-sectional area A and is wound unifonnly with N, tums. A second toroidal solenoid with N2 tums is wound unifonnly around the first. The two coils...
-
In Exercises discuss the continuity of each function. f(x) -3 1 x - 4 y 3 2 -1 -2 -3+ 3 X
-
(Warrants Issued with Bonds and Convertible Bonds) Incurring long-term debt with an arrangement whereby lenders receive an option to buy common stock during all or a portion of the time the debt is...
-
(Warrants Issued with Bonds and Convertible Bonds) Incurring long-term debt with an arrangement whereby lenders receive an option to buy common stock during all or a portion of the time the debt is...
-
(Ethical IssuesCompensation Plan) The executive officers of Rouse Corporation have a performance-based compensation plan. The performance criteria of this plan are linked to growth in earnings per...
-
On June 5, Staley Electronics purchases 250 units of inventory on account for $25 each. After closer examination, Staley determines 20 units are defective and returns them to its supplier for full...
-
The plan entitles the CEO to purchase 12,000 common shares at $29 each, following a vesting period. The vesting period is January 1, 2023 through December 31, 2024. The exercise period is January 1,...
-
Cherokee Incorporated is a merchandiser that provided the following information: Number of units sold Amount 14,000 $15 Selling price per unit Variable selling expense per unit Variable...
Study smarter with the SolutionInn App