Question
On 1 July 2011, Aaron Ltd purchased equipment for $4,000,000. The company uses the revaluation model to account for equipment and depreciates it over its
On 1 July 2011, Aaron Ltd purchased equipment for $4,000,000. The company uses the revaluation model to account for equipment and depreciates it over its estimated useful life of 4 years using the straight line method with a zero residual. Indicators of impairment and/or reversal of impairment existed at 30 June 2012, 2013 and 2014.
The information below shows the asset values at various dates.
Prepare general journal entries to account the equipment from 1 July 2011 to 30 June 2014 in accordance with the requirements of AASB 116 and AASB 136.
QUESTION 1 (a) 12 marks (a) On 1 July 2011, Aaron Ltd purchased equipment for $4,000,000. The company uses the revaluation model to account for equipment and depreciates it over its estimated useful life of 4 years using the straight line method with a zero residual. Indicators of impairment and/or reversal of impairment existed at 30 June 2012, 2013 and 2014. The information below shows the asset values at various dates. Prepare general journal entries to account the equipment from 1 July 2011 to 30 June 2014 in accordance with the requirements of AASB 116 and AASB 136. (12 marks) Please show all workings Step by Step Solution
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Cornerstones of Managerial Accounting
Authors: Maryanne Mowen, Don Hanson, Dan Heitger, David McConomy, Bradley Witt, Jeffrey Pittman
3rd Canadian edition
176530886, 176721231, 978-0176721237
