At 30 June 2020, Harry Ltd has reported the following assets. Asset Carrying Amount ($) Useful Life Machine (Original cost = $300,000) 210,000 10 years Vehicle (Original cost = $280,000) 168,000 5 years Both assets are measured using the cost model and depreciated on a straight-line basis over their expected useful lives. On 31 December 2020, the company decided to change the basis of measuring the two assets from the cost model to the revaluation model. Machine was revalued to $250,000 with a new expected useful life of 10 years. Vehicle was revalued to $140,000 with a new expected useful life of 4 years. On 30 June 2021, Machine was revalued to $145,000. The tax rate is 30%. Required: Prepare the journal entries at 31 December 2020 and 30 June 2021 in relation to Machine and Vehicle. Template for journal entries: Date Particulars Debit Credit

At 30 June 2020, Harry Ltd has reported the following assets. Asset Carrying Amount ($) Useful Life Machine (Original cost = $300,000) 210,000 10 years Vehicle (Original cost = $280,000) 168,000 5 years Both assets are measured using the cost model and depreciated on a straight-line basis over their expected useful lives. On 31 December 2020, the company decided to change the basis of measuring the two assets from the cost model to the revaluation model. Machine was revalued to $250,000 with a new expected useful life of 10 years. Vehicle was revalued to $140,000 with a new expected useful life of 4 years. On 30 June 2021, Machine was revalued to $145,000. The tax rate is 30%. Required: Prepare the journal entries at 31 December 2020 and 30 June 2021 in relation to Machine and Vehicle. Template for journal entries: Date Particulars Debit Credit

Name: At 30 June 2020, Harry Ltd has reported the following assets.AssetCar
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Description: At 30 June 2020, Harry Ltd has reported the following assets.AssetCarrying Amount ($)Useful LifeMachine (Original cost = $300,000)210,00010 yearsVehicle (Original cost =$280,000)168,0005 yearsBoth assets are measured using the cost model and depreci

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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