As at 30 June 2019 Grove Ltd had the following balances for non-current assets: Vehicle (at...

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As at 30 June 2019 Grove Ltd had the following balances for non-current assets: Vehicle (at cost) Accumulated depreciation - vehicle $90,000 (28,000) The vehicle was purchased on 1 March 2017 at a cost of $90,000 with a useful life of 7 years and a residual value of $6,000. The following transaction occurred in the financial year ending 30 June 2020: On 31 August 2019 the vehicle was sold, receiving $50,000 in cash. Grove Ltd uses the straight-line method to depreciate all non-current assets and rounds all calculations to the nearest dollar. Required: Record the necessary journal entries for the sale of the vehicle on 31 August 2019. As at 30 June 2019 Grove Ltd had the following balances for non-current assets: Vehicle (at cost) Accumulated depreciation - vehicle $90,000 (28,000) The vehicle was purchased on 1 March 2017 at a cost of $90,000 with a useful life of 7 years and a residual value of $6,000. The following transaction occurred in the financial year ending 30 June 2020: On 31 August 2019 the vehicle was sold, receiving $50,000 in cash. Grove Ltd uses the straight-line method to depreciate all non-current assets and rounds all calculations to the nearest dollar. Required: Record the necessary journal entries for the sale of the vehicle on 31 August 2019.

Answer rating: 100% (QA)

1 Depreciation for the period 1 March 2019 to 31 August 2019 Depreciation Expense Cost Residual Valu... View the full answer