Jae Ltd reported the following non-current assets at 30 June 2017: Land Buildings Less: Accumulated Depreciation...

 

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Jae Ltd reported the following non-current assets at 30 June 2017: Land Buildings Less: Accumulated Depreciation - Buildings Equipment Less: Accumulated Depreciation - Equipment Total non-current assets During the year 2017-18, the following transactions occurred: Purchased land for $1 500 000. Oct. 1 Nov. 1 $24 000 000 8 400 000 65 000 000 10 000 000 Dec. 1 $ 2 800 000 Jan. 1 Purchased equipment for $4 000 000 cash. May 1 15 600 000 55 000 000 $73 400 000 Sold equipment that cost $2 400 000 when purchased on 1 July 2013. The equipment was sold for $1 250 000. Sold land purchased on 30 April 2007 for $3 200 000. The land's original cost was $1 000 000. Scrapped equipment that had cost $1 200 000 when purchased on 30 June 2008. No residual value was received. Required A: Prepare journal entries to record the transactions. Jae Ltd uses straight-line depreciation for buildings and equipment. The buildings are estimated to have a 50-year useful life and no residual value. The equipment is estimated to have a 10-year useful life and no residual value. B: Record adjusting entries for depreciation for the year ended 30 June 2018. Ignore GST. Jae Ltd reported the following non-current assets at 30 June 2017: Land Buildings Less: Accumulated Depreciation - Buildings Equipment Less: Accumulated Depreciation - Equipment Total non-current assets During the year 2017-18, the following transactions occurred: Purchased land for $1 500 000. Oct. 1 Nov. 1 $24 000 000 8 400 000 65 000 000 10 000 000 Dec. 1 $ 2 800 000 Jan. 1 Purchased equipment for $4 000 000 cash. May 1 15 600 000 55 000 000 $73 400 000 Sold equipment that cost $2 400 000 when purchased on 1 July 2013. The equipment was sold for $1 250 000. Sold land purchased on 30 April 2007 for $3 200 000. The land's original cost was $1 000 000. Scrapped equipment that had cost $1 200 000 when purchased on 30 June 2008. No residual value was received. Required A: Prepare journal entries to record the transactions. Jae Ltd uses straight-line depreciation for buildings and equipment. The buildings are estimated to have a 50-year useful life and no residual value. The equipment is estimated to have a 10-year useful life and no residual value. B: Record adjusting entries for depreciation for the year ended 30 June 2018. Ignore GST.

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Solution Date A oct1 NOVI Decl May 1 Solution B June ... View the full answer