Wiley Ltd acquires an asset for a consideration of $120,000 on 1 July 2018. The asset has an expected life of 12 years and no expected residual value. As of 1 July 2021, the asset has a fair value of $80,000. The asset is depreciated using the straight-line method. The asset is sold for $70 000 on 30 June 2022. 

Required: Provide the journal entries, both without and with a revaluation, for: (a) Years 1 to 3, (b) Year 4, (c) Year 5.

Answer rating: 100% (QA)

a Years 1 to 3 without revaluation Year 1 1 July 2018 Asset Cost 120000 Cash or Accounts Payable 120... View the full answer