Company accounting 2 questions due 10am qld time

2103AFE Company Accounting
Workshop # 2 Questions – Revaluation and Impairment
The Following Questions are to be completed prior to attending your Workshop and may form part of your ‘randomly assessed homework’
Question 1
In the 30 June 2016 annual report of Cornet Ltd, the machinery was reported as follows:
    Machinery (at cost)
     $310,000
    Accumulated depreciation
    ($130,000)
    
    $180,000
The machinery is measured using the cost model and is depreciated on a straight-line basis over a 10-year period. The residual value is zero.
On 31 December 2016, the directors of Cornet Ltd decided to change the basis of measuring the equipment from the Cost model to the Revaluation model. The machine was revalued to $180,000 with an expected useful life of 6 years.
At 30 June 2017, the machinery was assessed to have a fair value of $163,000 with an expected useful life of 5 years.
Required:
Prepare the journal entries during the period 1 July 2016 to 30 June 2018 in relation to the machinery.
Solution-
Record depreciation for the year up to the date of revaluation (1st July to Dec. 31)
    DATE
    ACCOUNT TITLES
    DEBIT
    CREDIT
    31/12/2016
    Depreciation expense – Machinery
    $15,500
    
    
     Accumulated depreciation – Machinery
    
    $15,500
    
    Depreciation Machinery = (($310,000/10years)*0.5)
Calculation of the first revaluation
    Machinery – 31 December 2016
    Cost
    $ 310,000
    Less: Accumulated Depreciation...