ABS Company purchased one capital asset during the 2022 financial year. This was the purchase of new
Question:
ABS Company purchased one capital asset during the 2022 financial year. This was the purchase of new office equipment for $44000 inclusive GST on 31 December 2022. The office equipment has an expected life span of 4 years. According to the ATO the depreciation rate of this equipment is 50%.
1. Prepare the Asset Resister
2. Complete Depreciation Schedule, with the Depreciation Method: Diminishing Balance.
3. Complete the general ledger for Office Equipment and Acc Depreciation - Office Equipment. Using the depreciation schedule in the spreadsheet, calculate depreciation expense from the 2023 to 2027 financial year (5 Financial years in total).
4. Make Journal Entries to record the purchase and depreciation of office equipment for 2023, 2024, 2025 financial years until date of sale. Record entries in the General Journal. The sale of the office equipment on 31 December 2024 for $19800 cash (inclusive GST).
5. Complete the disposal details in the asset register card.
Financial and Managerial Accounting the basis for business decisions
ISBN: 978-0078111044
16th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello