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30/6/15 30/6/16 1/7/16 30/6/17 (b) Cash 1/1/18 Depreciation expense Accumulated depreciation-equipment Depreciation expense Accumulated depreciation-equipment V Accumulated depreciation-equipment Equipment. (To record equipment at carrying value before revaluation) Equipment. Revaluation surplus (To record revaluation) Depreciation expense Accumulated depreciation-equipment V 1/1/18 Depreciation expense Accumulated depreciation-equipment V (To record depreciation expense) Accumulated depreciation-equipment Equipment (To record equipment at carrying value before revaluation) Revaluation surplus Revaluation expense Equipment (To record revaluation) Show Transcribed Text New carrying value Show Transcribed Text C $ 18,500 18,500 37,000 17,000 21.250 10,625 31,875 Calculate the new carrying value of the equipment immediately after the revaluation downwards. 17,000 3,000 220,000 18,500 18,500 37,000 17,000 21,250 10,625 31,875 20,000

30/6/15 30/6/16 1/7/16 30/6/17 (b) Cash 1/1/18 Depreciation expense Accumulated depreciation-equipment Depreciation expense Accumulated depreciation-equipment V Accumulated depreciation-equipment Equipment. (To record equipment at carrying value before revaluation) Equipment. Revaluation surplus (To record revaluation) Depreciation expense Accumulated depreciation-equipment V 1/1/18 Depreciation expense Accumulated depreciation-equipment V (To record depreciation expense) Accumulated depreciation-equipment Equipment (To record equipment at carrying value before revaluation) Revaluation surplus Revaluation expense Equipment (To record revaluation) Show Transcribed Text New carrying value Show Transcribed Text C $ 18,500 18,500 37,000 17,000 21.250 10,625 31,875 Calculate the new carrying value of the equipment immediately after the revaluation downwards. 17,000 3,000 220,000 18,500 18,500 37,000 17,000 21,250 10,625 31,875 20,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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View Policies Show Attempt History Current Attempt in Progress On 1 July 2014, Capers Ltd purchased equipment with cash for a total cost of $220,000 including 10% GST. The estimated useful life of the equipment was 10 years, with an estimated residual value of $15,000. The entity's reporting period ends on 30 June, and it uses straight-line depreciation. On 1 July 2016, the entity revalued the equipment upwards by $17,000 to reflect the fair value. The revised useful life was 8 years and residual value was estimated at $10,000. On 1 January 2018, Capers Ltd revalued the equipment downwards by $20,000 to reflect the fair value. (a) Your answer is correct.
Transcribed Image Text:View Policies Show Attempt History Current Attempt in Progress On 1 July 2014, Capers Ltd purchased equipment with cash for a total cost of $220,000 including 10% GST. The estimated useful life of the equipment was 10 years, with an estimated residual value of $15,000. The entity's reporting period ends on 30 June, and it uses straight-line depreciation. On 1 July 2016, the entity revalued the equipment upwards by $17,000 to reflect the fair value. The revised useful life was 8 years and residual value was estimated at $10,000. On 1 January 2018, Capers Ltd revalued the equipment downwards by $20,000 to reflect the fair value. (a) Your answer is correct.
Date Account and explanation 1/7/14 30/6/15 30/6/17 Equipment GST paid 1/1/18 Cash 30/6/16 Depreciation expense Depreciation expense (b) Accumulated depreciation-equipment V 1/7/16 Accumulated depreciation-equipment Accumulated depreciation-equipment Equipment (To record equipment at carrying value before revaluation) Equipment Revaluation surplus (To record revaluation) Depreciation expense 1/1/18 Depreciation expense Accumulated depreciation-equipment Accumulated depreciation-equipment V (To record depreciation expense) Accumulated depreciation-equipment Equipment (To record equipment at carrying value before revaluation) Revaluation surplus Revaluation expense Equipment (To record revaluation) Show Transcribed Text Capers Ltd General journal New carrying value Show Transcribed Text $ Debit $ 200,000 20,000 18,500 18.500 37,000 17,000 21,250 10,625 31,875 Calculate the new carrying value of the equipment immediately after the revaluation downwards. 17,000 3,000 Credit $ 220,000 18,500 18,500 37,000 17,000 21,250 10,625 31,875 20,000
Transcribed Image Text:Date Account and explanation 1/7/14 30/6/15 30/6/17 Equipment GST paid 1/1/18 Cash 30/6/16 Depreciation expense Depreciation expense (b) Accumulated depreciation-equipment V 1/7/16 Accumulated depreciation-equipment Accumulated depreciation-equipment Equipment (To record equipment at carrying value before revaluation) Equipment Revaluation surplus (To record revaluation) Depreciation expense 1/1/18 Depreciation expense Accumulated depreciation-equipment Accumulated depreciation-equipment V (To record depreciation expense) Accumulated depreciation-equipment Equipment (To record equipment at carrying value before revaluation) Revaluation surplus Revaluation expense Equipment (To record revaluation) Show Transcribed Text Capers Ltd General journal New carrying value Show Transcribed Text $ Debit $ 200,000 20,000 18,500 18.500 37,000 17,000 21,250 10,625 31,875 Calculate the new carrying value of the equipment immediately after the revaluation downwards. 17,000 3,000 Credit $ 220,000 18,500 18,500 37,000 17,000 21,250 10,625 31,875 20,000
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