Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The following information relates to DXC Technology Ltd (a) DXC Technology Ltd has purchased equipment for its call centre. After installation, DXC Technology Ltd
The following information relates to DXC Technology Ltd (a) DXC Technology Ltd has purchased equipment for its call centre. After installation, DXC Technology Ltd began using the equipment on 1 July 2020. DXC Technology Ltd paid cash for the equipment of $135,000. Installation and freight paid in cash was $25,000. (b) On 1 July 2020 DXC Technology Ltd negotiated annual maintenance for the equipment paying cash of $9,000 (recorded using the expense approach). (c) The equipment is expected to be used constantly. The equipment will be depreciated using the straight-line method over 8 years. The estimated residual was $8,000. (d) On 1 September 2020, the equipment broke down and DXC Technology Ltd spent $15,000 to get it operating again. (e) and (f) On 1 July 2021, DXC Technology Ltd decided to upgrade the equipment hardware paying cash of $45,000. It was expected that the equipment would have a remaining useful life of 10 years. The estimated residual was revised to $15,000 Required: Prepare all the following six general journal entries for the years ended 30 June 2021 and 30 June 2022. Justify each of your entries.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started