Hand Creamy Limited purchased a land for $150,000 cash on 1 September 2016 and a machine for $300,000 cash on 1 July 2017. 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 2017, the fair value of the land was $200,000 and $332,500 for the machine. On 31 December 2018, the fair value of the land was $130,000 and $280,500 for the machine. On 1 March 2019, the land was sold for $120,000 by cash. The machine has a fair value of $305,500 on 31 December 2019. The balance day is 31 December.
Required a) Provide the journal entries related to the land and machine.
b) Disclose the extract of Balance Sheet, Income Statement and Statement of Comprehensive Income for the land at 31 December 2016, 2017, 2018 and 2019. Use the table provided. (see photo attached)
Extracted text: Hand Creamy Limited 31 December 31 December 31 December 31 December 2016 2017 2018 2019 Balance Sheet Non-current assets Land Equity Revaluation surplus Income Statement Other income and expenses Loss on revaluation Loss on disposal Statement of Comprehensive Income Unrealised gain Revaluation surplus