On April 02, 2009 the Global Company acquired equipment. It has estimated useful life of...
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On April 02, 2009 the Global Company acquired equipment. It has estimated useful life of 5 years with salvage value Rs. 5,000 the following expenditure were incurred on it. 1. Billed Price Rs. 275,000. 2. Freight Charges Rs. 2,000 and Transit Insurance Rs. 3,000. 3. Installation Expenses Rs. 25,000 4. Three years Fire Insurance Rs. 15,000. Company close its accounting period on Dec 31, of every year, and use reducing balance method @ 10% to record depreciation. Instruction: a) Compute the Cost of Equipment. b) Compute the Depreciation for 2009 and 2010 c) Record the Depreciation of 2011 in general Journal. Go
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