1, Accounting Exercise: Barlow Pty Ltd. is an insurance broking company. The accounting records of the business as at June 30, 20xx show the following items: Accounts payable Accounts receivable Advertising expense Cash af bank Capital - shareboldings Depreciation expen: Dividends paid Electricity and telephone expenses Fees revenue Sundry expenses Long term loans Property, plant and equipment Rents expense Salaries and wages roperty, plant and equipment Accumulated depreciation on property ete. REQUIRE! 2. Depreciation Exercise: Roche Mining Ltd aequired a truck for $115 000 on July 1, 2005. ‘The accountant expected that it would have a useful life of 320 000 km which, given normal usage, would mean that it had would have to be replaced in 5 years time. At the end of it’s useful life, it is expected that the truck could be sold for $20 000. In addition to the $115 000 price, on road and dealer delivery costs totalled $5 000, REQUIRED: Calculate the depreciation expense for each year using the straight line method Prepare a classified Income statement $16 800 68 000 165 040 38.000 112.000 10 800 82.520 31.600 589 000 8400 83200 148 000 36 640 252 000 40 000 nee Sheet. and show the asset in the Balance Sheet at the end of the first and second years. EXERCISES + From the balances given below, prepare an Income Statement and Balance Sheet for the year ending June 30 2002 for A. Price Enterprises. Cash at Bank Accounts Payal A. Price Enterprises as at June 30 2002. Ordinary Share Capital Drawings Land & Buildings Sales Utilities Expenses Cost of Goods Sold Administration Expenses Motor Vehicles Rent Expenses Offi A supplies expense ints Receivable ersors’ Sala} Retained Earnings J 1,2001 $20,000 25,000 140,000 1,000 310,500 21,000 1,000 11,000 500 20,000 1,000 500 30,500 1,200 11,200