Singh Enterprises, which started business on 1 January 2007, has an annual reporting period to 31...

Singh Enterprises, which started business on 1 January 2007, has an annual reporting period to 31 December and uses the straight-line method of depreciation. On 1 January 2007 the business bought a machine for £10,000. The machine had an expected useful life of four years and an estimated residual value of £2,000. On 1 January 2008 the business bought another machine for £15,000. This machine had an expected useful life of five years and an estimated residual value of £2,500. On 31 December 2009 the business sold the first machine bought for £3,000. Required: Show the relevant income statement extract and statement of financial position extract for the years 2007, 2008 and 2009.

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Zimt AG started business in 2007 and uses the FIFO inventory method. During 2007 it purchased...

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