Reference no: EM132718429

A company which makes up its financial statements annually to 31 December, charges depreciation on its machinery at the rate of 12% per annum using the reducing balance method.

On 31 December 2018, the machinery consisted of three items purchases as shown:

On 1 January 2016 Machine A       On 1 September 2017 Machine B             On 1 May 2018 Machine c

Cost 4,000                                       Cost 7,000                                                   Cost 2,000

Problem 1: Your calculations showing the depreciation expense for the year 2018.

Problem 2: Prepare the motor vehicle account and the accumulated provision for depreciation on motor vehicles account for the first two years of the motor vehicle's working life.