week 2 Question - Question 1 The following information is...

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Question 1 The following information is taken from the accounts of Ray Ltd. $000 Motor Vehicles, 1 January 2006 620 Motor Vehicles, 31 December 2006 740 Accumulated Depreciation – Motor Vehicles, 1 January 2006 230 Accumulated Depreciation – Motor Vehicles, 31 December 2006 290 Depreciation Expense – Motor Vehicles, year ended 31 December 2006 150 Gain on sale of motor vehicle, year ended 31 December 2006 10 Cost price of motor vehicles sold during the year 130 Where relevant use the traditional t-account method. Marks will be awarded for your correct t-account working. Marks will also be deducted for errors demonstrating a lack of understanding of fundamental aspects of accounting. Required: (1) Calculate the cash proceeds from Sale of Motor Vehicle. Cash proceeds from sale of motor vehicle = $50,000 Do not write outside the box
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1 (2) Calculate the cash paid for the purchase of a new Motor Vehicle. Cash paid for motor vehicle = $250,000
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This note was uploaded on 09/16/2011 for the course ACCT 1501 taught by Professor Helen during the Three '09 term at University of New South Wales.

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week 2 Question - Question 1 The following information is...

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