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Question - Printgood is a printing company. Its Production Department acquired a computerised colour scanner for $110 000 on 1 July 2020. Freight costs of $5 000 was also paid. $750 was paid for an additional machine part to enable the scanner.
From experience, the management expects the scanner to have an estimated useful life of 5 years. The residual value of the scanner at the end of the useful life is estimated to be $10,000.
Required -
a) Prepare journal entry to record the purchase of scanner. Ignore GST.
b) Prepare journal entry to record depreciation expense for the year ending 30 June 2022 under each of the following methods:-
i) Diminishing balance method
ii) Sum of year-digit method
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.
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