Madalena Ltd. purchased three machines on 15 July 2023 on credit. The bank asked for a yearly interest payment of 5%. In this purchase, GST of 10% is included. Machines A, B and C cost 35 %, 40% and 25% of the total amount of $200,000. These machines are depreciated using a straight-line method and their useful lives are 10, 12 and 14 years, respectively. Soon after the purchase, Madalena Ltd. decided to keep these machines under the revaluation model.
On that date, Madalena Ltd. received the following information about the fair values:
Machine A: 65000
Machine B: 95000
Machine C: 50000
Some months later, the fair values of these machines changed, these were collected on 31 Oct-23:
Machine A: 58000
Machine B: 80000
Machine C: 38000
Before the end of the financial year, these are the new fair values:
Machine A: 45000
Machine B: 101000
Machine C: 44000
Note that the useful lives of these assets have not changed since their purchase.
Required: Prepare the relevant journal entries from 15 July 2023 until the end of the financial year.
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