Type
Essay
Pages
3 pages
Word Count
381 words
School
California Miramar Unive
Course Code
CULTURE AND SOCIETY

Serbia – Demographics

August 28, 2020
Exercises Tangible Assets
1. Anton Stein e.K. operates a wholesaler of building materials of all kinds. Stein
purchased a company car on 01.09.2017 on cash.
The following costs were incurred:
List price special model extra class 49,800 EUR
Special features 6,800 EUR
Discount 3,000 EUR
Insurance 600 EUR
Transfer 700 EUR
License plate 25 EUR
New Seat covers: 250 EUR
Registration: 150 EUR
The normal useful life is 5 years and a residual value of 15,000 EUR is assumed.
In December 2018 Stein had a small accident with the car. The appraiser quantified the
value of the car due to the accident to 40,000 EUR.
Stein decided to sell the car on 28.02.2019 and receives 43,000 in cash
Task:
a. Determine acquisition cost and show the journal entry the purchase on
01.09.2017.
b. Determine and record the depreciation using the straight-line method as at
31.12.2017.
c. Show the journal entries on 31.12.2018.
d. Show the journal entries for the sell on 28.02.2019