A company starts in business on 1 January 2014, the financial year end being 31 December. You are to show:
(a) The equipment account.
(b) The provision for depreciation account.
(c) The statement of financial position extracts for each of the years 2014, 2015, 2016, 2017.
The equipment bought was:
|
2014
|
1 January
|
1 machine costing £800
|
|
2015
|
1 July
|
2 machines costing £1,200 each
|
|
|
1 October
|
1 machine costing £600
|
|
2016
|
1 April
|
1 machine costing £ 1,400
|
Depreciation is over 10 years, using the straight line method, machines being depreciated for the proportion of the year that they are owned.