Question 1:

In the 30 June 2017 annual report of Hazel Ltd, the following information was reported for equipment:

Equipment (at cost)

Accumulated Depreciation

$

260,000

(60,000)

The equipment consisted of one equipment - Equipment A.The equipment was measured using the cost model and depreciated on a straight-line basis over a 10-year period.

On 31 December 2017, the directors of Hazel Ltd decided to change the basis of measuring the equipment from the cost model to the revaluation model. Equipment A was revalued to $168,000 with an expected useful life of 5 years.

As at 30 June 2018, Equipment A was assessed to have a fair value of $160,000 with an expected useful life of 4 years.

Required:

Prepare the journal entries during the period 1 July 2017 to 30 June 2018 in relation to the equipment. (Ignore tax effects and, narrations are not required).