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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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.

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