On 1 March 2018 Ewing Ltd acquired equipment at a cost of $150,000. The estimated useful...
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On 1 March 2018 Ewing Ltd acquired equipment at a cost of $150,000. The estimated useful life of the equipment was 6 years, with an estimated residual value of $15,000. Ewing Ltd uses straight-line depreciation for its non-current assets and its balance date is 31 December On 31 December 2020, the equipment was revalued to $105,000 to reflect fair value. The revised useful life was 3 years, with a residual value of $6,000. On 31 December 2022, the equipment was revalued to $32,000 to reflect the fair value. Required: For the purpose of this question, please ignore GST. Narrations for journals are NOT required. Show ALL your workings i. Prepare the journal entry/entries required for the revaluation of the equipment on 31 December 2020, assuming that no depreciation has been recorded for the financial year ending December 2020. (6 marks) . Prepare the journal entry/entries required for the revaluation of the equipment on 31 December 2022, assuming that no depreciation has been recorded for the financial year ending December 2022. (4 marks) On 1 March 2018 Ewing Ltd acquired equipment at a cost of $150,000. The estimated useful life of the equipment was 6 years, with an estimated residual value of $15,000. Ewing Ltd uses straight-line depreciation for its non-current assets and its balance date is 31 December On 31 December 2020, the equipment was revalued to $105,000 to reflect fair value. The revised useful life was 3 years, with a residual value of $6,000. On 31 December 2022, the equipment was revalued to $32,000 to reflect the fair value. Required: For the purpose of this question, please ignore GST. Narrations for journals are NOT required. Show ALL your workings i. Prepare the journal entry/entries required for the revaluation of the equipment on 31 December 2020, assuming that no depreciation has been recorded for the financial year ending December 2020. (6 marks) . Prepare the journal entry/entries required for the revaluation of the equipment on 31 December 2022, assuming that no depreciation has been recorded for the financial year ending December 2022. (4 marks)
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A Calculation of Depreciation Annual Depreciation Cost Residual Value Useful Life Depreciation fo... View the full answer
Related Book For
Intermediate Accounting Volume 1
ISBN: 978-1119496496
12th Canadian edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy
Posted Date:
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