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Gunna Ltd acquired a printing machine on 1 July 2018 for $100,000. It is expected to have a useful life of 5 years, with the benefits being derived on a straight- line basis. The residual is expected to be $nil. On 1 July 2019 the machine is deemed to have a fair value of $75,000 and a revaluation is undertaken in accordance with Gunnamatta Ltd's policy of measuring property, plant and equipment at fair value. The asset is sold for $89 000 on 1 July 2020.
Required:
Problem 1: Provide the journal entries necessary to account for transactions and events at the following date. Narrations are required.
a) 30 June 2019 b) 1 July 2019 c) 30 June 2020 d) 1 July 2020
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