At 1 July 2020, Flamingo Ltd acquired computer equipment at a cost of $900,000. The expected useful life of equipment was 5 years with no residual value. At 30 June 2021, the fair value of equipment was assessed. The equipment had a fair value of $820 000, and directors decided to adopt the revaluation method. The remaining useful life was also assessed to be 4 years for equipment. At 30 June 2022, the fair value of equipment was assessed to be $500 000. Required: Prepare the journal entries for Flamingo Ltd for the years ending 30 June 2021 and 2022.
At 1 July 2020, Flamingo Ltd acquired computer equipment at a cost of $900,000. The expected useful life of equipment was 5 years with no residual value. At 30 June 2021, the fair value of equipment was assessed. The equipment had a fair value of $820 000, and directors decided to adopt the revaluation method. The remaining useful life was also assessed to be 4 years for equipment. At 30 June 2022, the fair value of equipment was assessed to be $500 000. Required: Prepare the journal entries for Flamingo Ltd for the years ending 30 June 2021 and 2022.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
At 1 July 2020, Flamingo Ltd acquired computer equipment at a cost of $900,000. The expected useful life of equipment was 5 years with no residual value. At 30 June 2021, the fair value of equipment was assessed. The equipment had a fair value of $820 000, and directors decided to adopt the revaluation method. The remaining useful life was also assessed to be 4 years for equipment.
At 30 June 2022, the fair value of equipment was assessed to be $500 000.
Required:
Prepare the
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education