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On 30th April 2016, Shelley purchased a new motor vehicle from Steven Motors for $49,500 ($45,000 + $4,500 GST). The estimated life is four years with an estimated residual value of $8,800 ($8,000 + $800 GST). Depreciation is 22% p.a. on Diminishing Balance method.
On 1st August 2020 the motor vehicle was traded in for $19,800 ($18,000 + $1,800 GST) on a new motor vehicle purchased on credit.
problem a) Prepare a Depreciation Worksheet for the period that the motor vehicle is owned.
problem b) Complete the following ledger accounts for the years ended 30 June 2016 and 2017 Motor Vehicle Account 11. Depreciation - Motor Vehicle ili. Accumulated Depreciation - Motor Vehicle
problem c) Prepare General Journal entries to record the sale and any gain or loss on sale of the motor vehicle.
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