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What are the correct journal entries to record depreciation

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Reference no: EM132408516

Question

(1) These are the extracted balances from the balance sheet as at 31 December 2019:

$ Motor vehicle 80,000

Less: Accumulated Depreciation 5,000 75,000

New motor vehicle costing $30,000 was acquired in 1 October 2019. There was no disposal during the year. Depreciation of motor vehicle is over 5 years using the reducing balance method at a rate of 20%. The scrap value of motor vehicle at the end of its useful life is expected to be $8,000.

Assume no depreciation has been recorded for the year. What are the correct journal entries to record the depreciation expense for motor vehicle as at 31 December 2019?

(2) These are the extracted balances from the balance sheet as at 31 December 2019:

$

Machinery 40,000

Less: Accumulated Depreciation 6,000

34,000

New machinery costing $12,000 was acquired in 31 March 2019. There was no disposal during the year. Depreciation of machinery is over 5 years using the straight-line method. Residual value of $2,000 is expected at the end of the 5 years for the new machinery.

Assume no depreciation has been recorded for the year. What are the correct journal entries to record the depreciation expense for machinery as at 31 December 2019?

Reference no: EM132408516

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