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  1. business
  2. accounting
  3. b) calculate the annual depreciation for the machi

b) Calculate the annual depreciation for the machine. [4 Marks] c) Prepare the necessary...

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Accounting

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b) Calculate the annual depreciation for the machine. [4 Marks]
c) Prepare the necessary journal entries to reflect the purchasing, depreciation and disposal of the machine. [6 Marks]
d) Post these journal entries to the relevant General Ledger Accounts [10 Marks]
NB: answer the whole question and show all workings
Question 1 [25 Marks] On 1 January 2016, Ms. Jacobs bought a Brick Making machine from China. The following costs were incurred and paid for in full during that period. Cost Element N$ Purchase Price 100,000 Installation Costs 4,000 Staff training 8,000 Legal Fees 4,000 Advertising costs 6,000 Initial Operating Loss 12,000 Import Duty 12,000 Set Up Costs 10,000 Administrative expenses 6,000 Ms. Jacobs, however decided to sell the machine at the end of the second year for $50,000. Depreciation is to be calculated using the reducing balance method at the rate of 20% per annum. Required a) Calculate the actual cost of machine to be incorporated in Ms. Jacobs's books of accounts [5 Marks)

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