Problem
At 1 July 2020, Flamingo Ltd acquired computer equipment at a cost of $900,000. The expected useful life of equipment was 5 years with no residual value. At 30 June 2021, the fair value of equipment was assessed. The equipment had a fair value of $820 000, and directors decided to adopt the revaluation method. The remaining useful life was also assessed to be 4 years for equipment.
At 30 June 2022, the fair value of equipment was assessed to be $500 000.
Task
Prepare the journal entries for Flamingo Ltd for the years ending 30 June 2021 and 2022.