question 3

On 1 July 20x1, Katoomba Ltd acquired two Trucks within the same class of Property, Plant and Equipment. These were paid for in cash. Information on these assets is as follows: A Fordish truck cost $375,000 with an expected useful life of 8 years and a residual value of $45,000 A Kenny truck cost $440,000 with an expected useful life of 10 years and a residual value of $20,000 The trucks are expected to generate benefits evenly over their useful lives (ie straight line depreciation). The class of property, plant and equipment is measured at fair value using the revaluation model specified in AASB116 Property, plant and Equipment. At 30 June 20x2, information about the assets is as follows: The Fordish truck had a fair value of $340,000. Its useful life was reassessed to 8 years from this date with a residual value of $55,000. The Kenny truck had a fair value of $292,000. Its useful life was reassessed to 5 years from this date with a residual value of $40,000. On 30th November 20X2, the Kenny truck was sold for $458,000 cash and not replaced. At 30 June 20x3, the Fordish truck had a fair value of $280,000. Its useful life was reassessed to 4 years from this date with a residual value of $20,000. Required Prepare the general journal entries in the records of Katoomba Ltd to record all the described events over the period 1 July 20x1 to 30 June 20x3 (inclusive), assuming the reporting periods end on 30h June. Round numbers to the nearest dollar. 23 marks NOTE In the pages that follow there are three pages of template for your general journal entries. Narrations are not required for the general journal entries