Prepare an extract from the balance sheet for the vehicle

Assignment Help Accounting Basics

Reference no: EM13697339

Vietnam Pty Ltd purchased a truck for cash for $52,000 plus 10% GST on January 1, 2010. At the time of purchase it was estimated that the useful life of the vehicle would be 100,000 kilometres and it was expected that it would travel that distance over four years. At the end of four years of useful life it was calculated that the truck could be sold for $12,000. The accounting period for Vietnam Pty Ltd is the financial year.

The actual distance covered by the truck was as follows:

Year ending 30 June:
2010 10,000 kilometres
2011 25,000 kilometres
2012 30,000 kilometres
2013 22,000 kilometres
2014 8,000 kilometres

Required:

A) Calculate depreciation for the years ending 30th June 2010 to 30 June 2014 using the units of production method.

B) Prepare general journal entries to record the purchase of the truck and depreciation, using the straight-line method, for the period 1 January 2010 to 30 June 2012.

C) Prepare an extract from the balance sheet for the vehicle as at 30 June 2012 using the straight-line method of depreciation.

Reference no: EM13697339

Questions Cloud

Develop an outline for a training session for managers : Develop an outline for a training session for managers about diversity management in your scenario organisation and Identify what approaches to diversity management you would recommend to build a more diverse workforce.

Find by what factor is the total emitted power increased : If the absolute temperature of a blackbody is doubled, by what factor is the total emitted power increased

What would be the volume of such a bacterium : Bacteria vary somewhat in size, but a diameter of 1.8 m is not unusual. What would be the volume (in cubic centimeters) of such a bacterium

Determine how far did it travel before it came to a stop : A car is traveling 80 m/s from left to right when the brakes are applied. (The acceleration is constant.) After 15s, it comes to a stop. How far did it travel before it came to a stop

Prepare an extract from the balance sheet for the vehicle : Calculate depreciation for the years ending 30th June 2010 to 30 June 2014 using the units of production method and prepare general journal entries to record the purchase of the truck and depreciation.

How much time does it take for the tennis ball : You toss a tennis ball straight upward. At the moment it leaves your hand it is at a height of 1.3 m above the ground, How much time does it take for the tennis ball to reach its maximum height

Estimate the image position : A 1.0-cm-tall object is 60 cm in front of a diverging lens that has a -30 cm focal length. Calculate the image position

Evaluate what the location of its image : A convex mirror, like the passenger-side rearview mirror on a car, has a focal length of -2.3m. An object is 4.6m from the mirror. Use ray tracing to determine the location of its image

Determine the initial velocity of the ball : The person shoots at the basket. Your job is to investigate whether or not he makes the basket. Determine the initial velocity of the ball

User Account

All Pages