Monarch Manufacturing purchased a new forklift and a packing machine. A check of Monarch's records revealed that an Asset Register record for the forklift vehicle and the packing machine had not been created. The Manager has now asked you to prepare the Asset Register record for these assets consistent with Monarch Manufacturing's organisational policy and procedures. She has provided you with the following information:

1. Packing Machine

• A packing machine, an Ultra Speedpack was purchased for $65,000 (excluding GST) on the 1 July 2017 from Melbourne PacktoGo.
• The packing machine was located at Monarch's Melbourne factory.
• The estimated life of the packing machine was set at 5 years.
• Our internal asset number PACK32 was assigned to the asset.
• The company accountant has instructed that straight line depreciation method will be used to estimate the residual value at the end of the effective life to be $5,000.

1. Forklift

• A forklift, a Toyota Hi-Lift, was purchased for $80,000 (excluding GST) on the 1 July 2018 from Queens Street Toyota.
• The forklift was registered for road use with registration no. ABC-123.
• The forklift was located at Monarch's Melbourne factory.
• The estimated life of the forklift was set at 5 years.
• Our internal asset number FORK16 was assigned to the asset.

The company accountant has instructed that straight line depreciation method will be used to estimate the residual value at the end of the effective life to be $5,000.

1. Using the data from part a and b of this activity, update the Asset Register to show the additional annual depreciation record for the packing machine and the additional depreciation and disposal of the forklift.

Monarch Manufacturing - Asset Register Record	Packing Machine
Date	Asset Cost	Depreciation	Accumulated Depreciation	Carrying Amount	Comments
30/6/19					Depreciation
30/6/20					Depreciation

Monarch Manufacturing - Asset Register Record	Forklift
Date	Asset Cost	Depreciation	Accumulated Depreciation	Carrying Amount	Comments
30/6/19					Depreciation
1/1/20					Depreciation
1/1/20					Disposal
Disposal Details:
Date Disposed:
Proceeds:
Gain/Loss on Disposal

Answer rating: 100% (QA)

Based on the given information we can update the Asset Register for the packing machine and forklift ... View the full answer