Question: Really important can someone please help now!!:) Presented below are selected transactions for Rangers Ltd during the year 2021. 1 Jan. Sold equipment that was
Really important can someone please help now!!:)
Presented below are selected transactions for Rangers Ltd during the year 2021. 1 Jan. Sold equipment that was purchased on 1 July 2017. The equipment which cost $36,000 had a useful life of 10 years with no residual value. The equipment was sold for $18,000 on cash. 1 April Purchased motor vehicle on cash at $60,000. The motor vehicle is expected to have 10 years useful life with no residual value. 30 June Sold a machinery for $30,600 on cash that was purchased on 1 July 2015. The machinery cost $64,800 and was depreciated based on a 8- year useful life with a $10,800 residual value. 31 Dec. Sold land on cash for $800,000. The land was bought at $300,000 three years ago. Required: a) Ignore GST. Journalize all entries required on the above dates, including entries to update depreciation on assets disposed of, where applicable. Rangers Ltd uses straight-line depreciation method for all its depreciable assets. The reporting period ends on 31 December. (7.5 marks) b) Prepare the journal entry to record Depreciation Expense for year ending 31/12/2021 for motor vehicle. (1 Mark) Narrations are not required
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