Question $2$: Non$-$current Assets $(10$ marks$)$

Richard Pty Ltd has an accounting financial year which ends on $30$ June. The company

purchased an equipment on $1$ July $2021$ for $$972,000$ cash. It is expected to run $4,000$ hours

during its useful life of five years. The company plans to use the machine for $1,000,500,750,$

and $750$ hours each year since its acquisition. The residual value of the equipment is expected

to be $$4,000$ after its useful life.

Required

$($a$)$ Prepare the journal entries to record the purchase of equipment on $1$ July $2021.$

$($b$)$ Assuming units of activity method, calculate the depreciation cost per unit and depreciation

expenses for the financial year $2022$ and $2023,$ respectively.

$($c$)$ Assuming diminishing$-$balance method, calculate the depreciation rate and prepare the

adjusting journal entries to record depreciation expense for the financial year $2022$ and $2023,$

respectively.

$($d$)$ On $31$ December $2023,$ the equipment was revalued to $$65,000.$ Assuming diminishing$-$

balance method was applied, prepare the journal entries for the revaluations.

please answer question $($c$)$ and $($d$)$