Project #20086 - journal entries

On 1 July 2013, Cook Ltd acquired two equipment within the same class of plant and equipment. 

Information on theses equipment is as follows: 

 Cost Estimated         useful life 

Equipment A 200 000       10 

Equipment B 120 000         6 

 

The equipment is expected to generate benefits evenly over their useful lives. The class of plant 

and equipment is measured using fair value. At 30 June 2014, information about the equipment 

is as follows: 

 Fair value                Estimated useful life 

Equipment A 168 000        8 

Equipment B 76 000           4 

 

On 1 April 2015, Equipment B was sold for $58 000 cash. On the same day Cook Ltd acquired 

Equipment C for $160 000 cash. Equipment C has an expected useful life of 8 years. 

At 30 June 2015, information on equipment is as follows: 

 Fair value                   Estimated useful life 

Equipment A 122 000          6 

Equipment C 137 000            3 

 

 

 

 

Required: 

a) Prepare general journal entries in the books of Cook Ltd over the period 1 July 2013 to 

30 June 2015; assuming the balance date is 30 June 2014 and 30 June 2015. (Ignore the 

tax effect). 

 (

Subject Business
Due By (Pacific Time) 12/18/2013 05:00 pm
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