Prepare the journal entries to record the land using revaluation accounting from 2017-2020 using the following table: Year Journal Land Unrealized Gain on Revaluation Loss on Impairment Recovery of Impairment Loss S'm S'm $'m $'m 2017 Dr Cr 2018 Dr Cr 2019 Dr Cr 2020 Dr Cr
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- On December 31, 2019, Vail Company owned the following assets: Vail computes depreciation and amortization expense to the nearest whole year. During 2020, Vail engaged in the following transactions: Required: 1. Check the accuracy of the accumulated depreciation balances at December 31, 2019. Round to the nearest whole dollar in all requirements. 2. Prepare journal entries to record the preceding events in 2020, as well as the year-end recording of depreciation expense. 3. Prepare an Accumulated Depreciation account for each category of assets, enter the beginning balance, post the journal entries from Requirement 2, and compute the ending balance.Refer to the information for Cox Inc. above. What amount would Cox record as depreciation expense for 2019 if the units-of-production method were used ( Note: Round your answer to the nearest dollar)? a. $179,400 b. $184,000 c. $218,400 d. $224,000Talparo Company purchased land in 2015 for $300,000. The land’s fair value at the end of 2015 is $320,000; atthe end of 2016, $280,000; and at the end of 2017, $305,000. Assume that Talparo chooses to use revaluationaccounting to account for its land.Required:Prepare the journal entries to record the land using revaluation accounting from 2015 until 2017.
- Mickelson Inc. owns land that it purchased on January 1,2000, for $450,000. At December 31, 2017, its currentvalue is $770,000 as determined by appraisal. At whatamount should Mickelson report this asset on its December31, 2017, balance sheet? Explain.On 1 July 2017, Entity A purchased a property (Land and Building) for $5,000,000. The value of the land and building are $600,000 and $4,400,000 respectively. The expected useful life of the building is 50 years with a residual value of $100,000. Entity A paid 60% by a cheque on 1 July 2017 and the balance was settled on 1 August 2017 through a bank transfer. On 30 June 2019, the property was revalued to $7,562,224 (land $980,224 and buildings $6,582,000) with a new estimated residual value of $120,000. On 30 June 2021, the property was sold to Entity B for $8,600,000. Entity A received 70% on the same date and the balance was settled on 1 August 2021. Entity A opts for annual transfer of the revaluation reserve. REQUIRED: According to relevant accounting standards, prepare journal entries to record the transactions of Entity A from 1 July 2017 to 1 August 2022. ACCOUNTS FOR INPUT: | Machine | Land | Building | Bank | Payable | Receivable | Retained earnings | Share capital | No…ABC Ltd has the following land and buildings in its financial statements as at 30 June 2022: Residential land, at cost Factory land, at valuation 2020 Buildings, at valuation 2020 Accumulated depreciation At 30 June 2022, the balance of the revaluation surplus is $908 520, of which $681 390 relates to the factory land and $227 130 to the buildings. On this same date, independent valuations of the land and buildings are obtained. In relation to the above assets, the assessed fair values at 30 June 2022 are: Residential land, previously recorded at cost Factory land, previously revalued in 2020 Buildings, previously revalued in 2020 Required: Provide the journal entries to account for the revaluation on 30 June 2022. ABC Ltd classifies the residential land and the factory land as different classes of assets. 2,271,300 2,044,170 1,817,040 -227,130 2,498,430 1,589,910 2,044,170
- XYZ, a manufacturing company, purchases a property for Ghs1m on 1 January 2016 for its investment potential. The land element of the cost is believed to be Ghs 400,000 and the buildings element is expected to have a useful life of 50 years. At 31 December 2016, local property indices suggest that the fair value of the property has risen to Ghs1.1m. Requirement Explain how the property would be presented in the financial statements as at 31 December 2016 if XYZ adopts the Cost model andFair value model.Use the following information for the next two (2) questions: The Malaluan Company accounts for non-current assets, using the revaluation model. On June 30, 2016 Malaluan classified a freehold property as held for sale in accordance with PFRS5. At the date the property's carrying amount was P290,000. At that date its fair value was estimated at P330,000 and the costs to sell at P20,000. At December 31, 2016 the property's fair value was estimated at P325,000 and the costs to sell at P25,000. 13) The asset should be carried in Malaluan's statement of financial position at December 31, 2016 at 14) What amount should be included as an impairment loss in Malaluan's statement of comprehensive income for the year ended December 31, 2016?Hawks Corporation’s Property, Plant and Equipment section of its statement of financial position as of December 31, 2019 included the following: Land P 400,000 Buildings 3,200,000 The following transactions occurred during 2020: Land site number 102 was acquired for P4,000,000. Additionally, to acquire the land the entity paid a P240,000 commission to a real estate agent. Costs of P60,000 were incurred to clear the land. During the course of clearing the land, timber and gravel were recovered and sold for P20,000. A second tract of land (site number 103) with a building was acquired for P1,200,000. Based on reliable information at the time of acquisition, fair value of land is P800,000 and the building P400,000. Shortly after acquisition, the building was demolished at a cost of P120,000. A new building was constructed for P1,600,000 plus the following costs: Excavation fees P 44,000 Architectural design fees 32,000 Building permit…
- On 1 April 2014, Live Land Limited acquired a piece of freehold land at Jalan Sultan at acost $4,980,000. The acquisition was financed through a bank loan.The land was subsequently revalued to $5,100,000 on 1 October 2017.On 31 March 2019, the land was sold for $6,250,000 cash.Required:Prepare all the necessary journal entries to record the following:(a) Purchase of land on 1 April 2014. (b) Revaluation of land on 1 October 2017. (c) Disposal of land on 31 March 2019.Hawks Corporation’s Property, Plant and Equipment section of its statement of financial position as of December 31, 2019 included the following: Land P 400,000 Buildings 3,200,000 The following transactions occurred during 2020: Land site number 102 was acquired for P4,000,000. Additionally, to acquire the land the entity paid a P240,000 commission to a real estate agent. Costs of P60,000 were incurred to clear the land. During the course of clearing the land, timber and gravel were recovered and sold for P20,000. A second tract of land (site number 103) with a building was acquired for P1,200,000. Based on reliable information at the time of acquisition, fair value of land is P800,000 and the building P400,000. Shortly after acquisition, the building was demolished at a cost of P120,000. A new building was constructed for P1,600,000 plus the following costs: Excavation fees P 44,000 Architectural design fees 32,000 Building permit…Comprehensive At December 31, 2018, certain accounts included in theproperty, plant, and equipment section of Townsand Company's balancesheet had the following balances: LandBuildingsLeasehold improvementsMachinery and equipment $100,000800,000500,000700,000 During 2019, the following transactions occurred: 1. Land site number 621 was acquired for $1,000,000. Additionally,to acquire the land, Townsand paid a $60,000 commission to a realestate agent. Costs of $15,000 were incurred to clear the land.During the course of clearing the land, timber and gravel were recovered and sold for $5,000.2. A second tract of land (site number 622) with a building wasacquired for $300,000. The closing statement indicated that theland value was $200,000 and the building value was $100,000.Shortly after acquisition, the building was demolished at a cost of $30,000. A new building was constructed for $150,000 plus the following costs: Excavation feesArchitectural design feesBuilding permit fee…