ACC102 : Fundamentals of Accounting II - Nicolaidis Ltd - Fundamentals of Accounting II Assignment Help

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Fundamentals of Accounting II Assignment Help

TASK On 1 January 2017, Nicolaidis Ltd purchased two identical new machines at a total costof $700 000 plus GST. It was estimated that the machines would have a useful life of 10years and a residual value of $50 000 each. Nicolaidis Ltd uses the straight-line method of depreciation for all of its equipment. The company’s end of reporting period is 31December. Record the purchase of the trucks on 1 January 2017. Record the depreciation expense on the trucks for 2022. Assume that early in 2023 the company revalued the machines upwards by $80 000each and assessed that the machines would last 6 more years instead of 4 but thatthe residual value would be $80 000. Record all journal entries for the trucks in 2023. Make the necessary entries to record the sale of one of the machines on 31 December2023. The machine was sold for $200 000 plus GST. (Assume that the two machineshad the same carrying amount, which equalled their fair values at this date.)