The asset schedule extract of Bilby Ltd shows the following

The asset schedule extract of Bilby Ltd shows the following details for its machinery as at 30 June 2019. The machinery has been accounted for using the revaluation model.

Machine A (Alvino)

Machine B (Bing)

$

$

Revalued amount

90,000

30,000

Accumulated depreciation

Carrying amount

90,000

30,000

As an accountant of Bilby Ltd, you are asked for account for the subsequent measurement of the machinery for the years ended 30 June 2020 and 2021. More information about these machines is provided below.

Machine A – Alvino

This machine was revalued for the first time on 30 June 2019, from $100,000 to $90,000. The directors determined that as at 30 June 2019, this machine had an estimated remaining useful life of 4 years, and an estimated residual value of $15,000.

The directors have determined that the fair value of this equipment on 30 June 2020 is $82,500. At 30 June 2020, this machine had an estimated remaining useful life of 3 years, and the residual value remains unchanged at $15,000.

The directors have determined that the fair value of this machine on 30 June 2021 is $66,000.

Machine B – Bing

This machine has been revalued a number of times, with revaluation decrements amounting to $1,500 being previously recognised in profit or loss. The directors determined that as at 30 June 2019, this machine was valued at $30,000 with an estimated remaining useful life of 4 years, and an estimated residual value of $6,000.

The directors have determined that the fair value of this machine on 30 June 2020 is $27,000. At 30 June 2020, this machine had an estimated remaining useful life of 3 years, and the residual value has been revised to $9,000.

This machine is sold on 31 December 2020 for $19,500

Required:

Prepare the necessary journal entries for the years ending 30 June 2020 and 30 June 2021 to record the depreciation, revaluations and disposal for the machinery in accordance with AASB 116 Property, Plant and Equipment. Show all relevant workings. Ignore any tax effect.

Question 3

Max. marks allocated

Journal entries

13

Workings

3

Total

16

How Our Website Works

1. FILL IN OUR SIMPLE ORDER FORM

It has never been easier to place your order. Fill in the initial requirements in the small order form located on the home page and press “continue” button to proceed to the main order form or press “order” button in the header menu. Starting from there let our system intuitively guide you through all steps of ordering process.

2. PROCEED WITH THE PAYMENT

All your payments are processed securely through PayPal. This enables us to guarantee a 100% security of your funds and process payments swiftly.

3. WRITER ASSIGNMENT

Next, we match up your order details with the most qualified freelance writer in your field.

4. WRITING PROCESS

Once we have found the most suitable writer for your assignment, they start working on a masterpiece just for you!

5. DELIVERY

Once finished, your final paper will be available for download through your personal dashboard. You will also receive an email notification with a copy of your paper attached to it. Sometimes, the writer may leave a note for you about the order in case there is any additional information that they need to give you.

Leave a Reply

Your email address will not be published.