Singh Enterprises, which started business on 1 January 2019, has a reporting period to 31 December and
Question:
Singh Enterprises, which started business on 1 January 2019, has a reporting period to 31 December and uses the straight-line method of depreciation. On 1 January 2019, the business bought a machine for £10,000. The machine had an expected useful life of four years and an estimated residual value of £2,000. On 1 January 2020, the business bought another machine for £15,000. This machine had an expected useful life of five years and an estimated residual value of £2,500. On 31 December 2021, the business sold the first machine bought for £3,000.
Required:
Show the relevant income statement extracts and statement of financial position extracts for the years 2019, 2020 and 2021.
Step by Step Answer:
Financial Accounting For Decision Makers
ISBN: 9781292409184
10th Edition
Authors: Peter Atrill, Eddie McLaney