Burleigh Brews Pty Ltd disposed of a delivery vehicle on 31 October 2022 receiving cash proceeds...

 

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Burleigh Brews Pty Ltd disposed of a delivery vehicle on 31 October 2022 receiving cash proceeds from the sale of $5,500 (GST Inclusive). The delivery vehicle had been purchased on 1 January 2018 for $47,500 (GST Exclusive) and was depreciated on a straight-line basis assuming a useful life of 6 years and a residual value of $7,000. The accumulated depreciation on the delivery vehicle as at 31 December 2021 was $33,750. Required: Assuming Burleigh Brews Pty Ltd financial year ends on 31 December, prepare journal entries to record: a. the depreciation expense on the delivery vehicle from 1 January 2022 up to the date of sale of vehicle on 31 October 2022, and the sale of the delivery vehicle on 31 October 2022. Please round your answers to the nearest dollar. Please show your workings. b. Burleigh Brews Pty Ltd disposed of a delivery vehicle on 31 October 2022 receiving cash proceeds from the sale of $5,500 (GST Inclusive). The delivery vehicle had been purchased on 1 January 2018 for $47,500 (GST Exclusive) and was depreciated on a straight-line basis assuming a useful life of 6 years and a residual value of $7,000. The accumulated depreciation on the delivery vehicle as at 31 December 2021 was $33,750. Required: Assuming Burleigh Brews Pty Ltd financial year ends on 31 December, prepare journal entries to record: a. the depreciation expense on the delivery vehicle from 1 January 2022 up to the date of sale of vehicle on 31 October 2022, and the sale of the delivery vehicle on 31 October 2022. Please round your answers to the nearest dollar. Please show your workings. b.

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a Depreciation Expenses Burleigh Brews Pty Ltd uses the straightline method of depreciation so the d... View the full answer