Sunny Ltd acquired an item of plant on 1 January 2022 for $175 000. Depreciation is straight-line over 5 years, with no residual value. On 30 June 2023 the fair value of the plant is $130 500. Reporting date is 30 June. Tax rate is 30%. Required: Provide the journal entries for the year ending 30 June 2023 (Narrations are required).
Sunny Ltd acquired an item of plant on 1 January 2022 for $175 000. Depreciation is straight-line over 5 years, with no residual value. On 30 June 2023 the fair value of the plant is $130 500. Reporting date is 30 June. Tax rate is 30%. Required: Provide the journal entries for the year ending 30 June 2023 (Narrations are required).
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Sunny Ltd acquired an item of plant on 1 January 2022 for $175 000. Depreciation is straight-line over 5 years, with no
residual value. On 30 June 2023 the fair value of the plant is $130 500. Reporting date is 30 June. Tax rate is 30%.
Required: Provide the journal entries for the year ending 30 June 2023 (Narrations are required).
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