Prepare journal entries to record the purchase

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Question - Selected transactions of Coromandel Ltd are given below. The company uses straight-line depreciation and calculates depreciation expense to the nearest whole month.

2018

4-Jan Purchased from Brampton Ltd a bottle washer (Serial No. 17538X) for $52,000 cash (net of GST). The useful life of the machine is 5 years and its residual value is expected to be $9,000.

Apr-10 Purchased from Granada Ltd a dryer (Serial No. PY43121) for $46,000 cash (net of GST). The machine has a useful life of 6 years and a residual value of $11,000.

Prepare journal entries to record the purchase of the assets and to record depreciation expense on 30 June 2018 and 2019, the end of the company's reporting periods. (Enter all debit entries first, followed by all credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Reference no: EM133163247

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