Foon Moon Ltd is construction plant and equipment company known for purchasing hybrid excavators over diesel excavators. It has been in operation for over ten years and prides itself as an environmentally responsible company. On 30 June 2022, Foon Moon Ltd reported the following information for equipment in its statement of financial position. Equipment (at cost) $ 2 800  000 Accumulated depreciation 1 040  000 Carrying amount 1 760  000 Investigation of the property and plant records showed that the equipment consisted of two items: a machine (no. 1) that cost the company $1 600 000 and had a carrying amount of $840 000 at 30 June 2022, and another machine (no. 2) that originally cost $1 200 000 and had a carrying amount at 30 June 2022 of $920 000. Both machines are depreciated on a straight-line basis over 10 years. On 1 January 2023, the directors of Foon Moon Ltd decided to switch the valuation method from the cost model to the revaluation model. Machine no. 1 was revalued to its fair value of $960 000, with an expected future useful life of 6 years, and machine no. 2 was revalued to $900 000, with an expected remaining useful life of 6 years. On 30 June 2023, machine no. 1 was completely destroyed by fire and cash of $820 000 was received from the insurance company. On the same day machine no. 2, was revalued to its fair value of only $600 000, and its future useful life to be 4 years because of a certain degree of commercial obsolescence. The company's financial year end is 30 June.

 Required Prepare general journal entries to record the above transactions and depreciation journal entries required at the end of each reporting period up to 30 June 2023. 

Answer rating: 100% (QA)

1 30 June 2022 Initial Recording Equipment Machine no 1 1600000 Accumulated Depreciation Machine no ... View the full answer