On 1 July 2023, your company acquired a machine for $103,000 on credit and decided to depreciate it for 25 years with no residual amount. The credit was taken from a local bank that charges 4.2% per annum with payments every year on 30 June. Assume that the fair values of this asset were: Date Fair Value 1/7/2023 $105,000 30/11/2023 $98,000 30/6/2024 $80,000

Using the revaluation model, prepare the relevant journal entries from the date of acquisition to 30 June 2024.

Answer rating: 100% (QA)

Answer Journal Entries from 1 July 2023 to 30 June 2024 1 July 2023 Debit Bank Loan 103000 Credit Asset Plant Machinery 103000 30 November 2023 Debit ... View the full answer