What you have to do
This assessment covers the competency elements listed in the table below: Task
1
Coverage
Depreciation and disposal of non-current assets Depreciation Balance Day Adjustments Closing Journals and basic financial reports
Competency
BSBDM408A/1
Weighting
18
2 3 4
BSBDM408A/1 BSBDM408A/2 BSBDM408A/3
22 20 40
To demonstrate competency in these competency elements, the student must demonstrate their understanding of the skills and knowledge in this assessment and the workplace simulation (end of unit test). Competency must be shown in all elements; an overall pass mark in the assessment does not necessarily show that competency has been met for all elements.
Task 1 (18 marks)
Kilkenny purchased a motor vehicle on January 1 2006. The vehicle was purchased on credit from Croker for $20,000 + $2,000 GST. The motor vehicle has an expected life of 4 years and an expected residual of $5,000 + GST $500. Required a) Calculate depreciation for the life of the motor vehicle if the business used the straight line method of depreciation (4 marks) b) Assuming the business used the straight line method to depreciate the vehicle, complete the following accounts for the years ended 30 June, 2006 and 2007 Motor vehicle account (2 marks) Accumulated Depreciation – Motor Vehicle (2 marks) Depreciation expense (2 marks) c) If the motor vehicle was sold on July 1, 2007 for $10,600 + $1,060 GST cash, show all necessary entries, in general journal format, to record the sale and any gain or loss on sale.(8 marks)
