Question

prepare journal entries. Please give right answer

Wattle Ltd manufactures and sells soft drinks. The financial year end is 30 June. The business purchased a new machine for $40,000 cash on 1 January 2015. The expected useful life was 10 years and residual value $2,000. On 30 June 2016, Wattle Ltd adopted the revaluation model to account for the class of machinery. The fair value of the machine was determined to be $32,000 on that date. The useful life and residual value of the machine were reassessed to 8 years and $1,500 respectively. Owing to technological advances, Wattle Ltd decided to replace the machine. On 31 March 2017, the business traded in for a new machine for $64,000. A $28,000 trade-in was allowed for the old machine and the balance of the new machine was paid in cash. In addition, transport and installation costs of $950 were incurred. The new machine was expected to have a useful life of 8 years and a residual value of $8,000. On 30 June 2017, fair value was determined to be $65,000 for the new Machine. The useful life was assessed as 5 years with a residual value of $1,000. On 31 December 2017, the machine was revalued to $53,000 with a four-year useful life and $500 residual value. Wattle Ltd uses the straight-line depreciation method. The income tax rate is 30%.

Answer 1

please find attached.

you Journal 4415 4oooo Machine - To Cash 40ooo 2 306 is Dep To Machine Di To Machine 3Boo 30/6/16 2300 Profit - & Loss Machine 230 To 31 3 17 2.84 0 Dep To machine 8 bo suaso 31//12 Machine Low on sale To sale 1140 of machine 29140 36950 3o) 412 _ Dub To Machine 1760 1830 30) 612 Machine To profit to Lose 1830 31/12/17 To machine 04.02
  
Page No. YOUVA Date 560 3114112 PLL To Machine 6563 30/6/16 dep 6543 To Machine