LO'Brienstartedbusinesson1Jan07.
ThisisanextractfromhisTrialBalanceforhisfirstyear's
tradingto31Dec2007
Dr
Equipmentatcost
60,000
Buildingatcost
200,000
Cr
Additionalinformation:
a) Providefordepreciationfor2007asfollows:
Equipment20%reducingbalance
Buildings10%straightline(i.ethesamethingas10%oncost)
Required:
(i)ShowrelevantexpensesintheP&Lfory/e31Dec07
(ii)PreparetheFixedAssetpartoftheBalanceSheet
ExtractfromTrialBalanceofLO'Brienfory/e31Dec08
Dr
Equipmentatcost
Buildingatcost
Accumulateddepreciationat31Dec07
Equipment
Buildings
Cr
60,000
200,000
12,000
20,000
Additionalinformation:
a) Providefordepreciationfor2008asfollows:
Equipment20%reducingbalance
Buildings10%oncost
Required:
(i)ShowrelevantexpensesintheP&Lfory/e31Dec08
(ii)PreparetheFixedAssetpartoftheBalanceSheet@31Dec08
ExtractfromTrialBalanceofLO'Brienfory/e31Dec09
Dr
Equipmentatcost
Buildingatcost
Accumulateddepreciationat31Dec08
Equipment
Buildings
Generalexpenses
Cr
60,000
200,000
21,600
40,000
6,000
Additionalinformation:
a) IncludedinGeneralexpensesisanamountof2,500spendoninstalling
anewfire/burlaralarmsysteminthebuilding.
b) Providefordepreciationfor2009asfollows:
Equipment20%reducingbalance
Buildings10%oncost
Required:
(i)ShowrelevantexpensesintheP&Lfory/e31Dec09
(ii)PreparetheFixedAssetpartoftheBalanceSheet@31Dec09