Prepare general journal entries in relation

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Reference no: EM132950340

On 1 January 2018, Bakers Ltd acquired two identical pieces of equipment for a total cost of $540 000 plus GST. It was estimated that each item would have a useful life of 8 years and a residual value of $40 000 each. The company uses the straight-line method of depreciation and its end of reporting period is 30 June.

On 1 July 2024, the company changed its accounting policy and revalued each item of equipment upwards by a total of $60 000, based on an independent valuer's report, to fair value.

Required: Prepare general journal entries in relation to Bakers Ltd equipment from acquisition date to revaluation date.

Reference no: EM132950340

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