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Dear tutor, thanks for the help! Please help me show the working of this question. Queens Ltd purchased machine on 1 July 2018 for $45
Dear tutor, thanks for the help! Please help me show the working of this question.
Queens Ltd purchased machine on 1 July 2018 for $45 000 cash. The installation costs which is S5 000 were paid on at the same day Useful life and residual value were estimated to be 4 years and S2 000 respectively. Queens Ltd depreciates equipment using the straight-line method to the nearest month, and reports annually on 30 June. The company tax rate is 30%. On 30 June 2020, the company had appraise the value of the machine and decided to revalue the machine to the value of S30 000 at that date after receiving the input from the professionals. The management had also decide to have annual maintenance for the machine which will cost S4 000 a year and payable at the end of fiscal year. The useful life and residual value had been revised to 4 years and $2 000 respectively. On 30 June 2021, depreciation for the year was charged and the equipment's carrying amount was remeasured to its fair value of $20 000. On 30 September 2021, the equipment was sold for S15 000 cash. Required: Prepare general journal entries to record the transactions and events for the period 1 July 2018 to 30 September 2021. (Show all workings and round amounts to the nearest dollar.)
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