Create an income statement and balance sheet

Assignment Help Accounting Basics

Reference no: EM133082691

BSBFIA401 Prepare financial reports - Sydney Metro College

Assessment Task: Depreciation project

Task summary

For this assessment task you are required to prepare a number of journal and ledger entries in response to the purchase, depreciation, and eventual sale of a fixed asset.

Instruction: Carefully read the following:

Andrew's Slabsbought a delivery truck on 1/7/2017. It cost $33,000 (including GST), and it was decided to depreciate it at 30%.

At the end of the financial year, on 30/06/2018, the balance of the accumulated depreciation of the truck was $15,300.

On 31/03/2019 Andrew traded it in on a new delivery truck. He received $8,800 for the trade in, and he paid the balance, $44,000, in cash. All figures included GST.

Andrew's Slabs uses the diminishing balance method.

Complete the following activities using Depreciation worksheet:

Question 1. Create a depreciation Worksheet for 2017 and 2018. Show your calculations.

Question 2. Write a General Journal entry on 30 June 2017 and 2018 for depreciation.

Question 3. Write Ledger accounts for Motor Vehicle, Accumulated Depreciation of Motor Vehicle and Depreciation Expense from 1/7/2017 to 30/6/2018.

Question 4. Create an Income Statement and Balance Sheet extracts for the year ended 30 June 2018, showing the Depreciation Expense and the Motor Vehicle.

Question 5. Write the journal entries to record the disposal of the old delivery truck on 31 March 2019, including calculation of gain or loss.Show your calculations.

Question 6. Send an email to your assessor.
The text of the email should be in grammatically correct English, written in an appropriate (polite, business-like) style. It should introduce and summarise the contents of the attachment.

Attachment:- Prepare financial reports.rar

Reference no: EM133082691

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