On 1 July 2011, Aaron Ltd purchased equipment for $4,000,000. The company uses the revaluation

| October 3, 2018

QUESTION 1 (a) 12 marks

(a)
On 1 July 2011, Aaron Ltd purchased equipment for
$4,000,000. The company uses the
revaluation model to account for equipment and depreciates it over its
estimated useful life of 4 years using the straight line method with a zero
residual. Indicators of impairment
and/or reversal of impairment existed at 30 June 2012, 2013 and 2014.
The information below shows the asset values
at various dates.
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Prepare general journal entries to account
the equipment from 1 July 2011 to 30 June 2014 in accordance with the
requirements of AASB 116 and AASB 136. (12 marks)
Please show all workings.

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