Reference no: EM133053587

Question - Golden Ltd. uses the Reducing Balance deprecation method to depreciate both buildings and equipment. The buildings are depreciated at 5 per cent and the equipment's are depreciated at 10 per cent per annum. The following is an extract of Golden Ltd. Balance sheet as at 30 June 2016. The extract of Golden Ltd. Balance sheet as at 30 June 2016 Buildings 500, 000 Less Acc. Dep. Of Buildings 160,000 $340,000 Equipment 300,000 Less Acc. Dep. Of Equipment 180,000 $120,000 REQUIRED: Prepare general journal entries to record the following transactions. a) The depreciation charge both buildings and equipment for the reporting period ended 30 June 2017 b) On 30 June 2017, the directors decided to sell the Equipment for $130,000 plus GST cash. Prepare necessary general journal entries to record the sale of Equipment.