Question: Bad guyd Ltd is a reporting entity in Australia. They purchased a non depreciabmr asset on 30 June 3019 for 50000. They chose the revaluation

Bad guyd Ltd is a reporting entity in Australia. They purchased a non depreciabmr asset on 30 June 3019 for 50000. They chose the revaluation model to account for the asset. Their finanicla year end is 30 June.

On June 30 2020, Fair value of asset was estimates to be 58000 due to increased market demand. however market consitions sjgnificantky deteriorated into folloeijg financial year due to covid lockdowns. as a result fair value fell to 25000 on 30 June 2021

a) Prepare all general journal entries for the year ended on 30 June 2021

b) Explain whether or not the carrying amount kf the asset on June 30 2021 would be different if they had adopted the cost model to account fkr the asset since initial acquisition (30 June 2019). Show any caculations required

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

hi can you upload the solution of it? and do you have exam paper of 5953 last semeter? OFFICE USE ONLY Mock Examination Faculty of Business and Economics Department of Accounting EXAM CODES: ACF5953...

The Bad Guys Ltd (BGL) is a reporting entity in Australia. BGL purchased a non-depreciable asset on 30 June 2019 for $50,000. BGL chose the revaluation model to account for the asset. BGL'S financial...

Myob software required Note: background information at the bottom (starting form page 10) PART 1: Self-Reection 10 Marks do this rt last This reflection asks students to attend to the following two...

Question 1 [27 marks] Protek Ltd, a masks distributor company, provides the following trial balance for the year ended 30 June 2020: Protek Ltd Trial balance as at 30 June 2020 Debit ($) Credit ($)...

Rule 4.3A Appendix 4E Preliminary Final Report Name of entity FARM PRIDE FOODS LTD ABN or equivalent company reference: 1. 42 080 590 030 Reporting period Report for the financial year ended 30 June...

Hi, This subject is financial accounting, here is a short essay type question, approximately 5 paragraphs. ''Drawing on private interest theory, what powers do you believe the Australian Accounting...

There is a case question (very last question) in the document below and i would like to know how to resolve it properly University of Toronto Faculty of Arts and Science and Rotman School of...

At a time when energy conservation is so important, some scientists think closer scrutiny should be given to the cost (in energy) of producing various forms of food. Suppose you wish to compare the...

Suppose an unknown organic compound gives a positive test with 2,4-dinitrophenylhydrazine. Why would you want to follow up that positive test with the Tollens test?

Please fill in all the boxes with the blue outline. Bobby's Tennis Shop has the following transactions related to its top-selling Wilson tennis racket for the month of August. Bobby's Tennis Shop...

One of the charateristics of a competitive negotiation is that the opposing party ia the adversary who is driven to assume the least amount of liability for risks, expenses, and obligations. Is this...

What are the forces for change, that is, what forces could lead to your ideal situation?

Looking at your figure, which side has the stronger forces? What does this suggest about the likelihood of change in this situation?

Describe how managing in a global environment can differ from the traditional approach to managing. Describe one way that we can develop managers to be more successful in a global environment.