Coco acquired two non-current assets for cash on 1 August 2015 for use in her party...

Coco acquired two non-current assets for cash on 1 August 2015 for use in her party organizing business:

• a 25-year lease on a shop for $200,000

• a chocolate fountain for $4,000.

The fountain is to be depreciated at 25% pa using the reducing balance method.

A full year of depreciation is charged in the year of acquisition and none in the year of disposal.

Required

Show the ledger account entries for these assets for the years ending 31 October 2015, 2016 and 2017.

Show your workings

Expert Solution

ekkarill92 answered 2 years ago

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