PART A (16 Marks)

In the 30 June 2019 annual report of Emu Ltd, the equipment was reported as follows.

Equipment (at cost)	$500000
Accumulated depreciation	(150000)
	350000

The equipment consisted of two machines, Machine A and Machine B. Machine A had a cost of $300000 and had a carrying amount of $180000 at 30 June 2019. Machine B had a cost of $200000 and had a carrying amount of $170000. Both machines are measured using the cost model, and depreciated on a straight-line basis over a 10-year period.

On 31 December 2019, the directors of Emu Ltd decided to change the basis of measuring the equipment from the cost model to the revaluation model. Machine A was revalued to $180000 with an expected useful life of 6years, and Machine B was revalued to $155000 with an expected useful life of 5 years.

At 1 July 2020, Machine A was assessed to have a fair value of $163000 with an expected useful life of 5years, and Machine B's fair value was $136500 with an expected useful life of 4 years.

REQUIRED:

1) Prepare the journal entries for Machine A for the period 1 July 2019 to 30 June 2020 on the basis that it was revalued on 31 December 2019. Narrations are not required.

DETAILS	DEBIT	CREDIT

2) Prepare the journal entries for Machine B for the period 1 July 2019 to 30 June 2020 on the basis that it was revalued on 31 December 2019. Narrations are not required.

DETAILS	DEBIT	CREDIT

3) Prepare the relevant journal entries required for 1 July 2020. Narrations are not required.

DETAILS	DEBIT	CREDIT

PART B (14 Marks)

The following details were extracted from the accounting records of Concord Limited as at 1/7/2017:

Items of Non- Current Assets	$
Land	8,000,000
10 storey Building	13,000,000
Vehicles	350,000
Accumulated Depreciation Vehicles	80,000
Revaluation surplus	2,000,000

Depreciation of non-current assets is calculated using the following basis:

Land	No depreciation
10 Storey Building	2% straight-line
Vehicles	10% reducing balance

Vehicles are used for transporting goods from suppliers. An old vehicle with a book value of $30,000 (original historical cost) and accumulated depreciation of $15,000 as at 1/7/2017 was traded-in at a value of $10,000 for the purchase of a new vehicle on 1/7/2017. The purchase price of the new vehicle was $55,000. The balance of the purchase price was settled in cash. The following information relating to the revaluation and impairment of the non-current assets was gathered on 30/6/2018:

	Market value	Fair value less cost to sell	Value in use
Land	12,000,000	-	-
10 Storey Building	13, 800,000	-	-
Vehicles		270,000	260,000

The financial year end of Concord Limited is 30^th June.

REQUIRED:

1. Journalise the purchase of the new vehicle and disposal of the old vehicle on 1/7/2017. Narrations are required.

DETAILS	DEBIT	CREDIT

2. Journalise thedepreciation of vehicles for the year ended 30/6/2018. Narrations are required.

DETAILS	DEBIT	CREDIT

3. Journalise the impairment of the vehicles for the year ended 30/6/2018.Narrations are required.

DETAILS	DEBIT	CREDIT

If you could show me the working that would be wonderful!!