Drouyn Ltd acquires an asset for a consideration of $100,000 on 1 July 2017. The asset has an expected life of 10 years
Posted: Wed May 04, 2022 4:15 pm
Drouyn Ltd acquires an asset for a consideration of $100,000 on
1 July 2017. The asset has an expected life of 10 years and
no expected residual value. As of 1 July 2020, the asset has
a fair value of $90,000. The asset is depreciated using the
straight-line method. The asset is sold for $80 000 on 30 June
2022.
Required:
Provide the journal entries, both without and with a
revaluation, for:
(a) years 1 to 3 [7 Marks]
(b) year 4 [8 Marks]
(c) year 5 [10
Marks]
1 July 2017. The asset has an expected life of 10 years and
no expected residual value. As of 1 July 2020, the asset has
a fair value of $90,000. The asset is depreciated using the
straight-line method. The asset is sold for $80 000 on 30 June
2022.
Required:
Provide the journal entries, both without and with a
revaluation, for:
(a) years 1 to 3 [7 Marks]
(b) year 4 [8 Marks]
(c) year 5 [10
Marks]