A Company purchased a building next to its factory for ₺944,000 cash on September 1, 2019. It also bought a car for ₺₺141,600 cash on October 1, 2019. Both amounts include 18% VAT. The car is used by the CEO of the company and has an annual depreciation rate of 10%. The building, on the other hand, is designed as a refectory (cafeteria) servicing the factory workers. Its annual depreciation rate is 2%. Depreciation method selected for both, the car and the building, is double-declining-balance. In April 2020 the factory remained closed for 15 days due to Corona pandemic, so all workers are granted paid leave (they stayed at home and still got their wages in full).

Required:

Show April depreciation entries (cost recording and application) for each of the following situations separately:

a. In a manufacturing firm, according to 7/A.

b. In a manufacturing firm, according to 7/B

c. In a service firm, according to 7/A (Factory above will be taken as main servicing unit)

Answer rating: 100% (QA)

aDeprication Ac Dr 131784 To Building Ac 131784 Being d... View the full answer