On 31 December 2008, he depreciated the equipment by 2½% of cost.-On this same date, RoseI am the force.7.om the Rose Bank of Nassau at the rate of 12% interest per annum for two and a balf(2%) years on 31 January 2008.Bank of Nassau deducted S700 from the buusiness' current account for interest payment due onthe bank loan and bank charges of $60 for services rendered.YOU ARE REQUIRED TO:I.Prepare journal entries necessary to record these transactions. Narratives are NOTnecessary.[10]93

given that, cost of the equipment = $10000 depreciation on the equipment = 2.5% depreciation expense…

On 1 January 2008, Spencer purchased equipment for his business valued $10 000 by cheque. He also wanted to expand his business at this time so he borrowed $28 000 from the Rose Bank of Nassau at the rate of 12% interest per annum for two and a half 7. (2%) years on 31 January 2008. On 31 December 2008, he depreciated the equipment by 2% of cost. On this same date, Rose Bank of Nassau deducted $700 from the business' current account for interest payment due on the bank loan and bank charges of $60 for services rendered. YOU ARE REQUIRED TO: I. Prepare journal entries necessary to record these transactions. Narratives are NOT necessary.

On 1 January 2008, Spencer purchased equipment for his business valued $10 000 by cheque. He also wanted to expand his business at this time so he borrowed $28 000 from the Rose Bank of Nassau at the rate of 12% interest per annum for two and a half 7. (2%) years on 31 January 2008. On 31 December 2008, he depreciated the equipment by 2% of cost. On this same date, Rose Bank of Nassau deducted $700 from the business' current account for interest payment due on the bank loan and bank charges of $60 for services rendered. YOU ARE REQUIRED TO: I. Prepare journal entries necessary to record these transactions. Narratives are NOT necessary.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

On 31 December 2008, he depreciated the equipment by 2½% of cost.-On this same date, Rose
I am the force.
7.
om the Rose Bank of Nassau at the rate of 12% interest per annum for two and a balf
(2%) years on 31 January 2008.
Bank of Nassau deducted S700 from the buusiness' current account for interest payment due on
the bank loan and bank charges of $60 for services rendered.
YOU ARE REQUIRED TO:
I.
Prepare journal entries necessary to record these transactions. Narratives are NOT
necessary.
[10]
93

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