Singh Enterprises, which started business on 1 January 2012, has a reporting period to 31… 1 answer below »

Singh Enterprises, which started business on 1 January 2012, has a reporting period to 31

December and uses the straight-line method of depreciation. On 1 January 2012 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 2013 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 2014 the business sold the first machine bought for £3,000.

Required:

Show the relevant income statement extracts and statement of financial position extracts for the

years 2012, 2013 and 2014.