These are the extracted balances from the balance sheet as at 31 July 2021: New...
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Accounting
These are the extracted balances from the balance sheet as at 31 July 2021:
New vehicle costing $80,000 was acquired on 1 May 2021. There was no disposal during the year. Depreciation of vehicle is charged on vehicle at 10% per annum on cost. Assume no depreciation has been recorded for the year. Which of the following are the correct journal entries to record the depreciation expense for motor vehicle as at 31 July 2021?
Question 2 options:
1) DR Depreciation Expense $9,000
CR Accumulated Depreciation $9,000
2) DR Depreciation Expense $10,000
CR Accumulated Depreciation $10,000
3) DR Depreciation Expense $12,000
CR Accumulated Depreciation $12,000
4) DR Depreciation Expense $13,500
CR Accumulated Depreciation $13,500
Motor vehicle Less: Accumulated Depreciation S 180,000 45,000 135,000
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