(1) Equipment purchase price K90,000 (2) Trade discount K20,000 (3) Site preparation costs K15,000 (4)...
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Accounting
(1) Equipment purchase price K90,000 (2) Trade discount K20,000 (3) Site preparation costs K15,000 (4) Delivery costs K9,000 (5) Insurance costs for the year ended 31 December 2020K50,000 (6) Compulsory dismantling costs at end of 10 years asset's life K4,000 The equipment is depreciated on a straight-line basis and revaluation model is used by Chambeshi. Management revalued the equipment toK102,000 on 31 December 2020so that its carrying amount is not materially different from market value. Required: (i) Calculate revenue expenditure and capital expenditure at 1 January 2020. (2marks) (ii) Prepare journal entries for the acquisition of equipment as at 1 January 2021. (2 marks) (iii) Calculate revaluation surplus/ (loss) at 31 December 2020. (4 marks) (iv) Prepare journal entries for the revaluation of equipment as at 31December 2020. (3 marks)
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