Question: Prepare the following Journal Entries for your new business venture. Clearly state the name of your business. Assume the financial period runs from 1 January

Prepare the following Journal Entries for your new business venture. Clearly state the name of your business. Assume the financial period runs from 1 January to 31 December.

(A) Invested $200,000 in cash in the business on 1 January 2020.

(B) A piece of equipment valued at $20,000 was purchased on 1st January 2020 Depreciation is charged at 20% using the reducing balance method. Record the first 3 years of depreciation.

(C) Purchased Motor Vehicle on 1st April 2020 at a cost of $45,000 and assumed to have a useful life of 5 years. Motor Vehicle was depreciated on a straight line basis. Record the purchase and the depreciation at 31 December 2020.

(D) On 1st August 2021, the Motor Vehicle was sold for $30,000. Prepare the entries require to complete the Sale. Clearly identify what your entries are for and show whether a profit or loss was made on the disposal

Step by Step Solution

★★★★★

3.38 Rating (154 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Prepare the following journal entries in the Bid Deposits Fund, an Agency Fund. This fund is used to record all deposits made by contractors doing work for the city. Any earnings on these resources...

The following journal entries were recorded by Lauren Retailing during the month of July: a. Prepare an income statement and the operating section of a statement of cash flows.b. Explain why net...

Using T accounts, post the following journal entries to the general ledger. GENERAL JOURNAL Date Sept. 2 4 Account title and explanation Accounts Receivable Supplies Cash Debit 2,275 750 1,050 95...

A manufacturing company is thinking of launching a new product. The company expects to sell $950,000 of the new product in the first year and $1,500,000 each year thereafter. Direct costs including...

A recent annual report for Ford Motor Company contained the following note: Significant Accounting Policies Depreciation and Amortization of Property, Plant, and Equipment Property and equipment are...

Antioch Company makes eBook readers. The company had the following amounts at the beginning of 2018: Cash, $660,000; Raw Materials Inventory, $51,000; Work in Process Inventory, $18,000; Finished...

Stella plc is a fashion retailer with stores in large cities around the UK. The draft financial statements for the year to 30 April 2023 show a profit after tax of 698,500. The Finance Director of...

D Lane purchased two cars for his business under hire purchase agreements: Both agreements provided for payment to be made in 24 monthly instalments commencing on the last day of the month following...

On January 1, 20X2, Miller Corp. purchased a milling machine for $400,000. It will be depreciated on a straight line basis over 20 years. On January 1, 20X3, Miller purchased a heavy-duty lathe for...

Benoit Inc. issued 25-year, 9% mortgage bonds in the principal amount of $3 million on January 2, 1997, at a discount of $150,000. It then amortized the discount through charges to expense over the...

Q1C6 Required 1 Required 2 Prepare an income statement for the current year under variable costing. 5 750,000 KENZI KAYAKING Variable Costing Income Statement Salos Less: Variable costs Variable...

Explain the key goal of effective negotiation and what it is meant to achieve. Include at least three (3) strategies that can be used to achieve a favorable outcome in a negotiation.

Child's Play Company makes a plastic rattle for toddlers. The rattle is generally marketed through exclusive retailers located in upscale shopping malls. In late 2017, Diana Suarez, the president of...

3. (10 points) Find the length of the part of the curve 2 R(t) = t + + 1 t F between the origin and the point (1, 2/2, 1/3).

0 Skills and Applications Writing an Exponential Equation In Exercises 7-10, write the logarithmic equation in exponential form. For example, the exponential form of log, 25 = 2 is 5 = 25. 7. log4 16...

In 6-8 find the velocity v(t) and position s(t) at time t> 0 of a material particle that moves without friction along a straight line, when its acceleration, initial position, and initial velocity...

CHALLENGE ACTIVITY 1 . 2 . 2 : Output basics

APC16550D UART has a clock running at18.432 MHz and its baud rate is set to 2000.Determine the HEX contents of its DLM and DLL registers. Please can you explain step by step and in detail how you get...

What is the minimum number of Special Revenue Funds you would expect a local government to have?

What is a budget? What purposes does it serve?

At the start of calendar year 2012, Central Citys records showed the following accounts relative to prior year property taxes: Property taxes delinquent............ 52,000 Allowance for uncollectible...

In the law firm Tybo and Associates, there are six partners. Listed next is the number of cases each partner actually tried in court last month. Partner Number of Cases Ruud........ 3 Wu........ 6...

There are five sales associates at Mid-Motors Ford. The five associates and the number of cars they sold last week are: Sales Associate Cars Sold Peter Hankish....... 8 Connie Stallter ....... 6 Juan...

The following is a list of 29 hospitals in the Cincinnati (Ohio) and Northern Kentucky region. The hospitals are identified by numbering them 00 through 28. Also included is whether the hospital is a...