Posted: September 12th, 2015

Neswick Ltd. purchased new machinery on 1st January 2014 for $154,000 on account

Neswick Ltd. purchased new machinery on 1st January 2014 for $154,000 on account. The machine has a useful life of 7 years, at the end of which it will be disposed off at nil value. As at 1 January 2017, the machine has a market price of $99,000. Neswick record depreciation expense once a year. The company sold the machine on 30.6.2018 & received an amount of $66,000. (all amounts include GST) Required: Provide journal entries for the following (explanations are not required): a) Purchase of the machine on 1.1.2014 (Mark: 0.75) b) Relevant journals entries for the years 2014, 2015 & 2016, both without & with revaluation (per AASB 116). (Mark: 1.75) c) Relevant journals entries for the years 2017, both without & with revaluation. (per AASB 116). (Mark: 4.5) d) Relevant journals entries for the years 2018, both without & with revaluation. (Marks: 11) (Please show all calculations clearly)