[winnie158]

B. NON-CURRENT ASSETS

Part 1

On 1 March 2012, Kobe Ltd purchased a new delivery van. Costs associated with the transaction were as follows (ignore GST):

Invoice price $28,000

Special vehicle extras 1,400

On-road costs 800

Registration fee 500

The van will be used for 4 years and depreciated on a straight-line basis. It has an estimated residual value of $12 000. End of the reporting period for Kobe Ltd is 30 June.



Required

Prepare journal entries for each of the following transactions (show all workings):

1. The van purchased for cash.

2. Depreciation on the van for the year ended 30 June 2012.

3. On 1 July 2013, a $1200 air-conditioning unit was added to the van. Although the van's estimated useful life was not affected, its estimated residual value was increased by $1,000.

4. On 1 September 2013, the van was given a full service and safety inspection at a cost of $800. Neither the useful life nor the residual value was affected.

5. Depreciation on the van for the year ended 30 June 2014.

6. Depreciation on the van for the year ended 30 June 2015.

7. On 2 January 2016, the van received a $2600 major overhaul. The overhaul is expected to extend the van's useful life by 1 year, at which time the revised residual value is estimated to be $14,000.

8. Depreciation on the van for the year ended 30 June 2017.

[paraclete]

Is there a reason why this is posted a second or even third time