The cost of the wicketer machine is as follows: Purchase Price R70 000 Installation R15 000 Staff Training R6 500 The machine has a useful life of 10 years and management's policy is to revalue the machine every two years from the date of purchase. The entity adopts the elimination method for revaluations. The machine is depreciated on a straight-line basis. An independent valuator who is a competent industry expert has determined the fair value of the machine to be R90 000 on the 2nd anniversary of the purchase of the machine. The Financial Director has also approved a policy that the revaluation surplus may be transferred to retained earnings as the asset is used. Required: Show all current year journal entries in respect of the Wicketer Machine up until the year ended 30 June 2022. Journal Narrations are required. Round all figures to the nearest Rand. Q.1.2

The cost of the wicketer machine is as follows: Purchase Price R70 000 Installation R15 000 Staff Training R6 500 The machine has a useful life of 10 years and management's policy is to revalue the machine every two years from the date of purchase. The entity adopts the elimination method for revaluations. The machine is depreciated on a straight-line basis. An independent valuator who is a competent industry expert has determined the fair value of the machine to be R90 000 on the 2nd anniversary of the purchase of the machine. The Financial Director has also approved a policy that the revaluation surplus may be transferred to retained earnings as the asset is used. Required: Show all current year journal entries in respect of the Wicketer Machine up until the year ended 30 June 2022. Journal Narrations are required. Round all figures to the nearest Rand. Q.1.2

Name: 22The cost of the wicketer machine is as follows:Purchase PriceR70 00
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Description: 22The cost of the wicketer machine is as follows:Purchase PriceR70 000InstallationR15 000Staff TrainingR6 500The machine has a useful life of 10 years and management's policy is to revalue the machineevery two years from the date of purchase. The en

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter9: Depreciation (deprec)

Section: Chapter Questions

Problem 4R: To test your formulas, assume the machine purchased had an estimated useful life of three years...

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