Adlyn. Co started a business on 1st January 2020. As of the date, the business...
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Adlyn. Co started a business on 1st January 2020. As of the date, the business purchased equipment for $23,500 and paid by cheque. On 1s June 2020, the business purchased additional equipment from Bahagia Equipment on credit at $18,000.As the business expanded, Adlyn realised the need for new equipment to meet bustomer demand. Adlyn purchased another piece of equipment on 1* March 2021 at $21,000 and paid by bank transfer. However, on 1* April 2021, the equipment that the business bought on 1* January 2020 was a broker, and the business decided to dispose of the asset at $15,000 and received cash. Adlyn. Co depreciates their equipment using a straight-line method fat 15% per annum. Full depreciation is charged for the year of purchase and none for disposal.
Required :
a) Outline the equipment account for the year ended 31st December 2020 and 31st
December 2021.
(b) Outline the provision for depreciation account for the year ended 31st December 2020
and 31s December 2021.
(c) Outline the disposal account for the year ended 31s December 2020 and 31st December
Adlyn. Co started a business on 1st January 2020. As of the date, the business purchased equipment for $23,500 and paid by cheque. On 1s June 2020, the business purchased additional equipment from Bahagia Equipment on credit at $18,000.As the business expanded, Adlyn realised the need for new equipment to meet bustomer demand. Adlyn purchased another piece of equipment on 1* March 2021 at $21,000 and paid by bank transfer. However, on 1* April 2021, the equipment that the business bought on 1* January 2020 was a broker, and the business decided to dispose of the asset at $15,000 and received cash. Adlyn. Co depreciates their equipment using a straight-line method fat 15% per annum. Full depreciation is charged for the year of purchase and none for disposal.
Required :
a) Outline the equipment account for the year ended 31st December 2020 and 31st
December 2021.
(b) Outline the provision for depreciation account for the year ended 31st December 2020
and 31s December 2021.
(c) Outline the disposal account for the year ended 31s December 2020 and 31st December
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