AL Limited is a well-established producer of Bluetooth earphones. On 1 January 2018, a machine was...

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AL Limited is a well-established producer of Bluetooth earphones. On 1 January 2018, a machine was purchased for $150,000 with a useful life of 12 years. Depreciation was calculated on a straight-line basis. The machine was revalued to $220,000 as at 31 December 2018 and further revalued to $174,000 as at 31 December 2019. Due to change in the economic situations and technological advancement, the fair value of the machine was decreased to $52,000 as at 31 December 2020. Required: (a) Prepare the journal entries for the transactions and events happened from 2018 to 2020 for AL Limited. (b) Prepare the extract of statement of profit or loss and other comprehensive income for the years ended 31 December 2018, 2019 and 2020 for AL Limited. (c) Calculate the balances of the Revaluation Surplus to be presented in the statement of financial position as at 31 December 2018, 2019 and 2020. AL Limited is a well-established producer of Bluetooth earphones. On 1 January 2018, a machine was purchased for $150,000 with a useful life of 12 years. Depreciation was calculated on a straight-line basis. The machine was revalued to $220,000 as at 31 December 2018 and further revalued to $174,000 as at 31 December 2019. Due to change in the economic situations and technological advancement, the fair value of the machine was decreased to $52,000 as at 31 December 2020. Required: (a) Prepare the journal entries for the transactions and events happened from 2018 to 2020 for AL Limited. (b) Prepare the extract of statement of profit or loss and other comprehensive income for the years ended 31 December 2018, 2019 and 2020 for AL Limited. (c) Calculate the balances of the Revaluation Surplus to be presented in the statement of financial position as at 31 December 2018, 2019 and 2020.

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a Journal Entries 2018 1 Revaluation of Machine Debit Machine Increase in Fair Value 70000 Credit Re... View the full answer