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Question 1 Hand Creamy Limited purchased a land for $150,000 cash on 1...

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Accounting

Question 1
Hand Creamy Limited purchased a land for $150,000 cash on 1 September 2019 and a machine for $300,000
cash on 1 July 2020. The useful life of the machine is 10 years, no residual value and straight line method for
depreciation. The company uses the revaluation model for those assets.
On 31 December 2020, the fair value of the land was $200,000 and $332,500 for the machine. On 31
December 2021, the fair value of the land was $130,000 and $280,500 for the machine.
On 1 March 2022, the land was sold for $120,000 by cash. The machine has a fair value of $302,250 on 31
December 2022 and $250,950 on 31 December 2023. The balance day is 31 December.
Required
Provide the journal entries related to the land and machine.
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