The following information was obtained from the accounting records of Crothers Ltd. Vehicle A Vehicle B Vehicle
Question:
The following information was obtained from the accounting records of Crothers Ltd.
Vehicle A | Vehicle B | Vehicle C | ||||
Acquisition date Cost Residual value Useful life (in years) Depreciation method | 1 July 2015 $30800 $2000 5 Straight-line | 1 July 2016 $28800 $2400 6 Straight-line | 1 July 2017 $39600 $4400 8 Sum-of-years-digits | |||
On 1 July 2016, vehicle A was traded in for vehicle B. The trade-in price for vehicle A was determined to be $21000.
Required
Prepare the journal entries (in general journal form) for all vehicle transactions from 1 July 2015 to 30 June 2017 in the accounting records of Crothers Ltd.
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Related Book For
Accounting
ISBN: 978-1118608227
9th edition
Authors: Lew Edwards, John Medlin, Keryn Chalmers, Andreas Hellmann, Claire Beattie, Jodie Maxfield, John Hoggett
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