Question: need help with this question On 2 January 2019, sydney Ltd purchased a machine for $79200 (inclusive GST) with a useful life of 5 years
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On 2 January 2019, sydney Ltd purchased a machine for $79200 (inclusive GST) with a useful life of 5 years and a residual value of $12000. In order to keep the machine running properly, the company has performed regular maintenance and repairs each year since its acquisition. In the fourth year (2022}, ordinary repairs amounted to $1980 (GST inclusivel. On 3 January 2023, Sydney Ltd decided to completely overhaul the machine's major operating parts at a cost of $21020(inclusive GST ), after which the machine is expected to have a useful life of 4 more years and a revised residual value of $8000. Sydney Ltd uses the straight-line depreciation method. The carrying amount of the parts replaced was considered to be $800. Required: Prepare general journal entries to record: 1. the purchase of the machine on 2 January 2019 the day-to-day repairs on the machine in 2022 2. 3. the overhaul of the machine on 3 January 2023 4 depreciation expense on the machine on 31 December 2023 Date Details No
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