On 30 April 2022, E Shelley purchased a new Ford Falcon sedan registration KKW 443 from Steven
Question:
On 30 April 2022, E Shelley purchased a new Ford Falcon sedan registration KKW 443 from Steven Motors for $49 500
($45 000 + $4500 GST). Funds were transferred electronically. The estimated life is four years with an estimated residual value of $8800 ($8000 + $800 GST). Depreciation is 22% p.a. diminishing balance method.
On 1 August 2026 the car was traded in for $19 800 ($18 000 +$1800 GST) on a new motor vehicle purchased on credit.
Prepare:
a a depreciation worksheet for the period that the car is owned b extract general journals for 30 June 2026 and 1 August 2026 c an asset register record for the motor vehicle from its purchase to disposal (assume appropriate account and serial numbers).
Step by Step Answer:
Accounting An Introduction To Principles And Practice
ISBN: 9780170403832
9th Edition
Authors: Edward A. Clarke, Michael Wilson