Prepare the journal entries for twister ltd for the years

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Reference no: EM132498824

At 1 July 2014, Twister Ltd acquired the following non-current assets:

Equipment $100 000

Vehicles 80 000

Point 1: They are in different classes of non-current assets and are to be measured at fair value. The expected useful lives of vehicles and equipment are 5 years and 10 years, respectively.

Point 2: At 30 June 2015, the fair values of both assets were assessed. The equipment had a fair value of $82 000, and the vehicles, $70 000. The remaining useful lives were assessed to be 8 years for equipment and 7 years for vehicles.

Point 3: At 30 June 2016, the fair value of equipment was assessed to be $81 750 and the fair value of vehicles was $55 000.

Required

Question 1: Prepare the journal entries for Twister Ltd for the years ending 30 June 2015 and 2016.

Reference no: EM132498824

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