Deakin Ltd purchased a machine on 1 July 2018 for $82,000 cash. Additional expenditures were made...

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Deakin Ltd purchased a machine on 1 July 2018 for $82,000 cash. Additional expenditures were made for transportation $500 and installation $4,500. It was estimated that the machine would have a useful life of 7 years and a residual value of $3,000. Deakin Ltd's financial year ends 30 June and it prepares adjusting entries for depreciation at the end of every financial year. Deakin Ltd uses the straight-line method of calculating depreciation. On 1 July 2020, the machine was sold for $65,000. Required: Prepare general journal entries to record the above transactions and events in relation to the acquisition and sale of the machine. Narrations are not required. (Ignore GST). (5 marks) Deakin Ltd purchased a machine on 1 July 2018 for $82,000 cash. Additional expenditures were made for transportation $500 and installation $4,500. It was estimated that the machine would have a useful life of 7 years and a residual value of $3,000. Deakin Ltd's financial year ends 30 June and it prepares adjusting entries for depreciation at the end of every financial year. Deakin Ltd uses the straight-line method of calculating depreciation. On 1 July 2020, the machine was sold for $65,000. Required: Prepare general journal entries to record the above transactions and events in relation to the acquisition and sale of the machine. Narrations are not required. (Ignore GST). (5 marks)

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Deakin Ltd Journal Entries for Machine Acquisition and Sale 1 Acquisition on 1 July 2018 Debit Machi... View the full answer