On 1 July 2022, Resonante Ltd acquired two assets within the same class of plant and equipment. Information on these assets is as follows. Cost Expected useful life Machine A $200 000 5 years Machine B 120 000 3 years The machines are expected to generate benefits
On 1 July 2022, Resonante Ltd acquired two assets within the same class of plant and equipment. Information on these assets is as follows.
Cost Expected useful life Machine A $200 000 5 years Machine B 120 000 3 years The machines are expected to generate benefits evenly over their useful lives. The class of plant and equipment is measured using fair value.
At 30 June 2023, information about the assets is as follows.
Fair value Expected useful life Machine A $168 000 4 years Machine B 76 000 2 years
On 1 January 2024, Machine B was sold for $58 000 cash. On the same day, Resonante Ltd acquired Machine C for $160 000 cash. Machine C has an expected useful life of 4 years. Resonante Ltd also made a bonus issue of 20 000 shares at $1 per share, using $16 000 from the general reserve and $4000 from the asset revaluation surplus created as a result of measuring Machine A at fair value. At 30 June 2024, information on the machines is as follows.
Fair value Expected useful life Machine A $122 000 3 years Machine C 137 000 3.5 years
Required
1. Prepare the
2. Prepare journal entries to record the events for the year ended 30 June 2024.
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