Neswick Ltd. purchased new machinery on 1st January 2014 for $154,000 on the account. The machine has
Question:
Neswick Ltd. purchased new machinery on 1st January 2014 for $154,000 on the account. The machine has a useful life of 7 years, at the end of which it will be disposed of at nil value. As of 1 January 2017, the machine has a market price of $99,000. Neswick records depreciation expenses once a year. The company sold the machine on 30.6.2018 & received an amount of $66,000. (all amounts include GST)
Required:
Provide journal entries for the following (explanations are not required):
a) Purchase of the machine on 1.1.2014
b) Relevant journals entries for the years 2014, 2015 & 2016, both without & with revaluation (per AASB 116).
c) Relevant journals entries for the years 2017, both without & with revaluation. (per AASB 116).
d) Relevant journals entries for the years 2018, both without & with revaluation.
Engineering Economy
ISBN: 978-0132554909
15th edition
Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling