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On 1 July 2014, Capers Ltd purchased equipment with cash for a total cost of $ 227,700 including 10% GST. The estimated useful life of the equipment was 10 years, with an estimated residual value of $ 16,000. The entity's reporting period ends on 30 June, and it uses straight-line depreciation. On 1 July 2016, the entity revalued the equipment upwards by $ 19,000 to reflect the fair value. The revised useful life was 8 years and residual value was estimated at $ 9,000. On 1 January 2018, Capers Ltd revalued the equipment downwards by $ 22,200 to reflect the fair value. (a) Your answer is partially correct. Prepare the journal entries in relation to the equipment from the date of acquisition. (Enter debit entries first followed by credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Capers Ltd General journal Debit Credit Date Account and explanation Capers Ltd General journal Date Account and explanation Debit $ Credit 1/7/14 Equipment 207000 GST paid 20700 Cash 227700 30/6/15 Depreciation expense 19100 Accumulated depreciation-equipment 19100 30/6/16 Depreciation expense 19100 Accumulated depreciation equipment 19100 1/7/16 Accumulated depreciation equipment 19000 Equipment 19000 (To record equipment at carrying value before revaluation) (To record equipment at carrying value before revaluation) Equipment 223590 Revaluation surplus 22350 (To record revaluation) 30/6/17 Depreciation expense 11175 Accumulated depreciation-equipment 11175 1/1/18 Depreciation expense 9500 Accumulated depreciation-equipment 9500 (To record depreciation expense) 1/1/18 Accumulated depreciation equipment Equipment (To record equipment at carrying value before revaluation) Revaluation surplus 19000 MacBook Air 20 000

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