Depreciation 2

What is the correct GJ entry for the following:

Paid annual registration for new motor vehicles $2 200.

• Motor Vehicle DR 2000

  GST Credits Received DR 2000

  Cash CR 2200

• Registration DR 2200

  GST Collected CR 200

  Cash CR 2000

• Registration DR 2000

  GST Credits Received DR 200

  Cash CR $2200

• Motor Vehicle DR 2000

  GST Collected DR 2000

  Cash CR 2200

What is the correct GJ entry for the following:

Purchased machinery (GST inclusive) from Machinery Land $48 400.

• Machinery DR 48 400

  GST Collected CR 4 400

  Other Payable- Machinery Land CR 44 000

• Machinery DR 40 000

  GST Credits Received DR 4400

  Accounts Payable- Machinery Land CR 48 400

• Machinery DR 48 400

  Other Payable- Machinery Land CR 48 400

• Machinery DR 44 000

  GST Credits Received DR 4400

  Other Payable- Machinery Land CR 48 400

What is the journal entry for the following transaction:

Installed and paid air conditioning in building $56 100 (GST Inclusive)

• Air Conditioning DR 51 000

  GST Credits Received DR 5 100

  Cash CR 56 100

• Buildings DR 51 000

  GST Credits Received DR 5 100

  Cash CR 56 100

• Buildings DR 56 100

  GST Collected CR 5 100

  Cash CR 51 00

• Buildings DR 51 000

  GST Credits Received DR 5 100

  Other Payable CR 56 100

Which of the following is NOT a criteria for capital expenditures?

• extend life of the asset

• one off

• add value to the asset

• ongoing cost

Odd one out: Which of the following is NOT a capital expenditure?

• new tyres

• repairs to asset

• new engine

• painting new building

Which of the following assets would NOT be amortised?

• Goodwill

• patents

• copyright

• motor vehicle

What kind of account is accumulated depreciation?

• liability

• asset

• negative asset

• negative liability

what is the formula for straight line depreciation?

Which of the following is not a factor for calculating depreciation:

• cost price of the asset

• anticipated life of the asset

• anticipated residual value of the asset

• method for calculating the depreciation charge

• none of the above

What is the amount of straight line depreciation for the following:

July 1- Purchased equipment for $38 500 (GST inclusive), estimated life of 6 years, with a residual value of $5000