On 2 July 2020 Sam Olsen Transport purchased a new delivery vehicle costing $95,000 (GST exclusive). The

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On 2 July 2020 Sam Olsen Transport purchased a new delivery vehicle costing $95,000 (GST exclusive). The delivery is depreciated using the diminishing value depreciation method at 20% per year.

On 30 June 2021 the delivery vehicle was considered unsuitable. The machine and cash of $30,000 was exchanged for a replacement delivery vehicle costing $120,000 (GST exclusive). Sam Olsen Transport is registered for GST.

Required:

Prepare the general journal entries to record the disposal of the delivery vehicle and the acquisition of the replacement delivery vehicle.

Posted Date: May 10, 2024 05:09 AM

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On 2 July 2020 Sam Olsen Transport purchased a new delivery vehicle costing $95,000 (GST exclusive). The

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The depreciation for the first year is calculated as follows Depreciation Cost of Asset Rate of Depr... View the full answer

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