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In: Accounting

Lysterfield Ltd has various non-current assets, including buildings and machinery. Both assets are being depreciated using...

Lysterfield Ltd has various non-current assets, including buildings and machinery. Both assets are being depreciated using the straight-line method.

The buildings were purchased on 1 July 2016, with an anticipated residual value of $200,000 and an expected useful life of 16 years. The Buildings are being recorded under the revaluation model.

The machinery was purchased on 1 July 2015, with an anticipated residual value of $30,000 and an expected useful life of 8 years. The machinery is being recorded under the cost model.

An extract of the balance sheet at 1 July 2018 is provided below:

Non-current Assets

Buildings	1,800,000
Accumulated Depreciation	(200,000)
	1,600,000

Machinery	750,000
Accumulated Depreciation	(270,000)
	480,000

Information relating to the assets at 30 June 2019 is:

	Fair Value	Value in Use	Cost to Sell
Buildings	1,331,000	1,330,000	5,000
Machinery	400,000	403,000	2,000

Remaining useful life of Buildings at 1 July 2019 is 13 years.

Remaining useful life of Machinery at 1 July 2019 is 4 years.

Information relating to the assets at 30 June 2020 is:

	Fair Value	Value in Use	Cost to Sell
Buildings	1,415,000	1,412,000	5,000
Machinery	260,000	255,000	2,000

Required:

(a) Prepare the general journal entries for the year ended 30 June 2019. Justify your answer and show all workings.

(b) Prepare the general journal entries for the year ended 30 June 2020. Justify your answer and show all workings.

*Please upload the solution as soon as you can finish it. Thanks for your help

Expert Solution

Solution:

ekkarill92 answered 2 years ago

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