Prepare the following Journal Entries for your new business venture. Clearly state the name of your business.
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 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
Introduction to Governmental and Not for Profit Accounting
ISBN: 978-0132776011
7th edition
Authors: Martin Ives, Terry K. Patton, Suesan R. Patton