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Prepare journal entries to record the impairment

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Reference no: EM133116876

Question - On 30th June 2017, YourMowing Pty Ltd purchased equipment at $750,000 (GST Exclusive). At that time, the equipment was estimated to have a useful life of 10 years and a residual value of $50,000. On 30th June 2021, the equipment had a carrying amount of $470,000.

On 30th June 2022, the equipment was assessed as having a recoverable amount of $345,000, a remaining useful life of 7 years and a residual value of $30,000.

On 30th June 2023, the equipment was assessed as having a recoverable amount of $310,000, a remaining useful life of 3 years and a residual value of $16,000. The equipment has been carried under the cost model.

Required - Prepare journal entries to record the impairment and the depreciation of equipment under the cost model on 30th June 2022, 30th June 2023 and 30th June 2024. Narrations are not required.

Reference no: EM133116876

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