Cockle Bay Marine Pty Ltd charters (rents) boats and yachts to qualified sailors. The company paid $8,000 on 9 May 2021 to Point Nepean Shipwrights for work done on Cockle Bay Marine Pty Ltd Yacht, Island Dreaming. The work consisted of purchasing and installing new sails at a cost of $7,000 and cleaning the hull (bottom of the yacht) which is done each year at a cost of $1,000. Disregard GST.

Required:

How would Cockle Bay Marine Pty Ltd report the $8,000 paid on 9 May 2021 in the financial statements?

Answer rating: 100% (QA)

Cockle Bay Marine Pty Ltd would report the 8000 paid to Point Nepean Shipwrights for work on the yac... View the full answer