On 1 July 2023, your company acquired a machine for $103,000 on credit and decided to depreciate
Fantastic news! We've Found the answer you've been seeking!
Question:
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 cost model, prepare the relevant journal entries from the date of acquisition to 30 June 2024.
Related Book For
Intermediate Accounting
ISBN: 978-0176509736
10th Canadian Edition, Volume 1
Authors: Donald Kieso, Jerry Weygandt, Terry Warfield, Nicola Young,
Posted Date: