Details of courier vehicles owned by Speedy Couriers at 1 July 2018 are as follows: This business
Question:
Details of courier vehicles owned by Speedy Couriers at 1 July 2018 are as follows: This business is registered for GST.
Required:
- Record the following transactions for Speedy Couriers for the year ending 30 June 2018 in the general journal. Narrations are not required.
1 July 2018: | The owners of Speedy Couriers decided to re-value the Van to a fair value of $50,000. |
30 December 2018: | The courier van was exchanged for a new truck with a cash price of $64,000. A trade-in allowance of $27,000 was received for the courier van. The balance outstanding was paid in cash. |
30 June 2019: | The mini-van was overhauled at a cost of $25,000 (excluding GST) after which the useful life was estimated to be 6 years. There was no change to the residual value of the vehicle. The overhaul costs were paid in cash. The carrying value of parts replaced was $3,000. |
(4 + 7 + 6 = 17 marks)
- Record the depreciation expense of the year ending 30 June 2020 for the mini-van in the general journal. Narrations are not required.
Principles of Taxation for Business and Investment Planning 2019 Edition
ISBN: 9781260161472
22nd edition
Authors: Sally Jones, Shelley C. Rhoades-Catanach, Sandra R Callaghan