Neswick Ltd. purchased new machinery on 1st January 2014 for $154,000 on the account. The machine has a useful life of 7 years, at the end of which it will be disposed of at nil value. As of 1 January 2017, the machine has a market price of $99,000. Neswick records depreciation expenses once a year. The company sold the machine on 30.6.2018 & received an amount of $66,000. (all amounts include GST) 

Required: 

Provide journal entries for the following (explanations are not required): 

a) Purchase of the machine on 1.1.2014 

b) Relevant journals entries for the years 2014, 2015 & 2016, both without & with revaluation (per AASB 116).

c) Relevant journals entries for the years 2017, both without & with revaluation. (per AASB 116). 

d) Relevant journals entries for the years 2018, both without & with revaluation.

Answer rating: 100% (QA)

a Purchase of the machine on 112014 Debit Machinery 154000 Credit Accounts Payable 154000 b Relev... View the full answer