Exercise 1 Malibu Limited acquired a building on 1 July 2012 at a cost of $800,000. The useful life of the building was estimated as 20 years with no residual value. Mailbu Limited use the straight line method of depreciation. The estimate of the useful life of the building was revised to 16 years from 30 June 2018. Required: Prepare journal entries for depreciation of the building for years ended 30 June 2018, and 2019 and state the carrying amount of the building at the end of each of the two reporting periods.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Exercise 1
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Malibu Limited acquired a building on 1 July 2012 at a cost of $800,000. The useful life of the building was
estimated as 20 years with no residual value. Mailbu Limited use the straight line method of depreciation. The
estimate of the useful life of the building was revised to 16 years from 30 June 2018.
Required: Prepare journal entries for depreciation of the building for years ended 30 June 2018, and 2019 and
state the carrying amount of the building at the end of each of the two reporting periods.
Transcribed Image Text:Exercise 1 Page Malibu Limited acquired a building on 1 July 2012 at a cost of $800,000. The useful life of the building was estimated as 20 years with no residual value. Mailbu Limited use the straight line method of depreciation. The estimate of the useful life of the building was revised to 16 years from 30 June 2018. Required: Prepare journal entries for depreciation of the building for years ended 30 June 2018, and 2019 and state the carrying amount of the building at the end of each of the two reporting periods.
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