QUESTION 3 All & Sundry Ltd commenced business on June 1, 2019. The business financial year ends on May 31st. The policy of the business is to depreciate all non-current assets according to the months of ownership, using the Reducing Balance Method at a rate of 20% per annum.

The following information was provided relating to its non-current assets register over the first two financial years:

2019 August 1 Bought a machine for $45,000 by cheque.

2019 October 1 Bought an additional machine for $30,000, paying in cash.

2020 Nov 30 All & Sundry Ltd traded the machine that was acquired in October 2019 for a newer model. The newer model cost $36,000 and a trade-in allowance of $18,700 was agreed upon. All & Sundry Ltd settled the balance due by cheque.

2021 Feb 28 sold the machine that was originally purchased on August 1, 2019 for $34,130 cash.

2021 March 1 purchase a machine for $55,000 by debit card.

requires:

prepare the following for All& Sundry to reflect the two-year period:

Machinery Account

Accumulated Depreciation- Machinery Account

Disposal Account-(separate account for each disposal)

Income Statement extracts

Statement of Finacial Position extracts