On 1 July 2020, GTW Ltd purchased a machinery at $120,000. GTW Ltd adopts the cost model for the machinery. The machinery is depreciated on a straight-line basis over a 6-year period with nil residual value.   On 30 June 2021, the fair value of the machinery is $90,000 and the recoverable amount is $95,000. The machinery has 5 years remaining useful life.   On 30 June 2022, the recoverable amount of the machinery is assessed to be $83,000.   Required:   What are the journal entries in accordance with the requirements of AASB 116 Property, Plant and Equipment at 30 June 2022?

Q: On Jan 1, 2020, Elway Inc purchases a piece of equipment for $55,000. The equipment has a $3,000…

A: The Depreciation expense is charged on the fixed costs as reduction in the value of the fixed assets…

Q: esidual value. The asset is accounted for under t ut every three years. On December 31, 2025, th air…

A: Journal entries :A Journal Entry is a record of the business transactions in the accounting books of…

Q: Plant and Machinery was bought by the business on June 1st, 2019 at a list price of 150,000.…

A: Answer:- Depreciation meaning:- Depreciation is basically the decrease in the value of the fixed…

Q: Create Co. purchased equipment on November 1, 2021 for P850,000. The company estimates that the…

A: Annual Depreciation (straight line method) = (Cost of the assets - Residual value) / Expected life…

Q: On, April 1, 2020, S. Products Co. purchased new machinery for $450,000. The machinery has an…

A: The objective of the question is to journalize all entries required for the machine from April 1,…

Q: Vaughn Ltd. purchased a building on January 1, 2021 for $14,610,000. Vaughn accounted for this asset…

A: Jan 1, 21 Building    a/c                     Dr         1,46,10,000     >>>> To Bank…

Q: 1. Shay Enterprises purchased equipment on March 18, 2018, at a cost of $40,000. The equipment was…

A: Depreciation can be referred to as a decline in the value of asset due to its usage in the normal…

Q: On January 1, 2021, CAE Company acquires an asset for $450,000,000. It had to spend an additional…

A: Given: On January 1, 2021, CAE Company acquires an asset for $450,000,000. The amount to be spend is…

Q: On 30 June 2019, TIE Ltd acquired a machire for $180 000 cash, with an expected useful life of 9…

A:

Q: Culver Ltd. purchased a building on January 1, 2021 for $14,880,000. Culver accounted for this asset…

A: Journal entries are prepared before preparing any other ledger account, financial statement, etc.…

Q: Alex Company purchased a lathe on January 1, 2022, at a cost of $45,000. At the time of purchase,…

A: Straight-line depreciation is a method of allocating the cost of an asset evenly over its estimated…

Q: On January 1, 2022, Martinez Corporation acquires a building at a cost of $195,000. The building is…

A: Commercial organizations used journal entries to record their financial transactions in their…

Q: On October 1, 2021, Hess Company places a new asset into service. The cost of the asset is $120,000…

A: Depreciation expense: Depreciation expense is the reduction in a particular asset due to its use or…

Q: At 1 July 2020, Flamingo Ltd acquired computer equipment at a cost of $900,000. The expected useful…

A: Depreciation expense for the period 1 July 2020 to 30 June 2021 = $900,000 - 05 years = $180,000…

Q: On March 9, 2019, Alpha Inc. purchased an equipment with a cost of HK$600,000, a useful life of five…

A: The question is related to Impairment loss. The Impairment loss is calculated with the help of…

Q: On January 1, 2021, Blizzards-R-Us purchased a snow-blowing machine for $85,000. The machine was…

A: Depreciation is considered an expense charge on the value of the Asset. It can be calculated by…

Q: On 30 June 2020, James Ltd acquired a machine for $200 500 cash, with an expected useful life of ten…

A: Fair Value Valuation of Non Current Assets While adopting the fair value valuation it can't measure…

Q: Ventura Corporation purchased machinery on January 1, 2019 for ₱840,000. The company used the…

A: It has to be treated prospective. There is no cumulative effect. Therefore option d ₱0 is correct

Contingent Liabilities and Provisions

A contingent liability can be defined as a liability the occurrence of which is dependent upon the happening of an uncertain future event. It is generally recorded in the books only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly.