Question: plz do as quick as possible QUESTION 1(15 marks) Swan Ltd purchased equipment on 1 July 2018 for $39 800 cash. Transport and installation costs

 plz do as quick as possible QUESTION 1(15 marks) Swan Ltd

plz do as quick as possible

QUESTION 1(15 marks) Swan Ltd purchased equipment on 1 July 2018 for $39 800 cash. Transport and installation costs of $4200 were paid on 5 July 2018. Useful life and residual value were estimated to be 10 years and S1800 respectively. Swan Ltd depreciates equipment using the straight-line method to the nearest month, and reports annually on 30 June. MA In June 2020, changes in technology caused the company to revise the estimated useful life from 10 years to 5 years, and the residual value from $1800 to $1200. This revised estimate was made before recording the depreciation for the reporting period ended 30 June 2020 On 30 June 2020, the company adopted the revaluation model to account for equipment. An expert valuation was obtained showing that the equipment had a fair value of $30 000 at that date. On 30 June 2021, depreciation for the year was charged and the equipment's carrying amount was remeasured to its fair value of S16 000. Required Prepare general journal entries to record the transactions and events for the period 1 July 2018 to 30 June 2021 (Narrations are required and show all workings and round amounts to the nearest dollar.)

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!