9.5 Irish Catering Ltd. started in business on 1 January 2010, its financial year ending 31...

 

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9.5 Irish Catering Ltd. started in business on 1 January 2010, its financial year ending 31 December. The company purchased its industrial equipment as follows: Year Date of Purchase 2010 2011 2012 1-Jan 20-Oct 15-Feb 20-Nov 20-Mar Amount ($) 50,000.00 90,000.00 80,000.00 60,000.00 120,000.00 During 2012, the company sold assets purchased on 1 January 2010 (original cost $30,000) for $20,000. Depreciation is at the rate of 10% per annum using the straight-line method, depreciating based on assets in existence at the end of the year. You are required to show the following for 2010, 2011 and 2012 a) The plant and equipment account b) The accumulated depreciation account c) The disposal of plant and equipment account for 2012 d) Extracts from the income statement and the statement of financial position 9.5 Irish Catering Ltd. started in business on 1 January 2010, its financial year ending 31 December. The company purchased its industrial equipment as follows: Year Date of Purchase 2010 2011 2012 1-Jan 20-Oct 15-Feb 20-Nov 20-Mar Amount ($) 50,000.00 90,000.00 80,000.00 60,000.00 120,000.00 During 2012, the company sold assets purchased on 1 January 2010 (original cost $30,000) for $20,000. Depreciation is at the rate of 10% per annum using the straight-line method, depreciating based on assets in existence at the end of the year. You are required to show the following for 2010, 2011 and 2012 a) The plant and equipment account b) The accumulated depreciation account c) The disposal of plant and equipment account for 2012 d) Extracts from the income statement and the statement of financial position