Able Ltd purchased machinery on 1 November 2016 for $160 000. The estimated useful life of the
Question:
Able Ltd purchased machinery on 1 November 2016 for $160 000. The estimated useful life of the machinery is 8 years, with an estimated residual of $10 000. The entity’s reporting period ends on 30 June, and it uses the straight-line method of depreciation. On 1 July 2017, the value in use was estimated to be $90 000 and the net selling price was $98 750.
Required
Prepare the journal entries in relation to the equipment from the date of acquisition.
Step by Step Answer:
The journal entries in relation to the equipment from the date of acquisition is as ...View the full answer
Financial Accounting Reporting Analysis And Decision Making
ISBN: 9780730313748
5th Edition
Authors: Shirley Carlon, Rosina Mladenovic Mcalpine, Chrisann Palm, Lorena Mitrione, Ngaire Kirk, Lily Wong
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A journal entry is an act of keeping or making records of any transactions either economic or non-economic. Transactions are listed in an accounting journal that shows a company\'s debit and credit balances. The journal entry can consist of several recordings, each of which is either a debit or a credit
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