QUESTION 3 (8 + 12 = 20 Marks) a) On 1 July 2021, Mozart Ltd…
Question Answered step-by-step QUESTION 3 (8 + 12 = 20 Marks) a) On 1 July 2021, Mozart Ltd… QUESTION 3 (8 + 12 = 20 Marks)a) On 1 July 2021, Mozart Ltd purchased three machines each used in a different production process in the factory. On 30 June 2022, there was an indication that the machines could be impaired due to a new competitor entering the market so Mozart Ltd determined the recoverable amounts of the machines. Information concerning the machines is summarised in the table below. Mozart Ltd uses straight-line depreciation over a 5 year period for all machinery. Assume that all three machines had nil residual values at the end of their useful lives. MachineCost1/7/21Value in Use 30/6/22Net Selling price 30/6/221$10,000$7,500$9,0002$25,000$13,000$12,0003$15,000$8,000$9,500 50,000 Required:1) Record any depreciation for the year ended 30 June 2022.2) Record any asset impairment at 30 June 2022. b) Vivaldi had the following non-current asset balances in their general ledger at 31 December 2021.Motor Vehicle at cost $33 000Land at cost 150 000 The following transactions occurred during 2022. June 30Sold the motor vehicle that was purchased on 1 January 2019 for $33,000. It has a useful life of 6 years with no residual value. The vehicle was sold for $15,000 cash.July 1Revalued land held at cost of $150,000 to its fair value of $170,000. Dec 31The fair value of the land $170,000 has fallen due to a re-zoning of the area. Vivaldi Ltd decides to revalue the land to its revised fair value of $135,000. Required: Prepare the general journal entries required to record the transactions that occurred during 2022. Assume depreciation has been recorded up to 31 December 2021. Mozart Ltd uses straight-line depreciation. please provide workings, thank you! Accounting Business Financial Accounting BUS 285 Share QuestionEmailCopy link Comments (0)
