Make journal entry for brad ltd to record depreciation

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Brad Ltd purchased machinery on 1 September 2021 for $143,400 cash. Transport and installation costs of $11,600 were paid on 3 September 2021. Useful life and residual value were estimated to be 10 years and $5,000, respectively. Brad Ltd depreciates equipment using the straight-line method and reports annually on 30 June.

In June 2023, changes in technology caused the company to revise the estimated useful life of the machinery from 10 years to 5 years, and the residual value from $5,000 to $3,500. This revised estimate was made before recording the depreciation for the reporting period ended 30 June 2023. On 30 June 2023, the company adopted the revaluation model to account for equipment. An expert valuation was obtained showing that the machinery had a fair value of $90,000 at that date. On 30 September 2023, the machinery was sold for $75,000 cash.

REQUIRED

Question 1: Make general journal entries for Brad Ltd to record depreciation, revaluation and disposal of the machinery for the years ended 30 June 2022, 2023 and 2024. Exclude journal narrations.

Reference no: EM132573576

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