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Cullumber Motels Inc. owns a motel that it had purchased on January 1, 2023, for $3.60 million cash and is accounted for in account, classified as "Buldings." The company is using the revaluation model to account for its structures and revalues them Cullumber uses straight-line depreciation over the asset's 15-year useful life with no residual value. The asset's fair value was equal to its carrying amount on Dec. 31, 2023, and was $3,550,000 on Dec. 31, 2024. Assuming Cullumber uses the asset adjustment (elimination) method for revaluation, prepare all required journal entries for 2024. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, s Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.)

Cullumber Motels Inc. owns a motel that it had purchased on January 1, 2023, for $3.60 million cash and is accounted for in account, classified as "Buldings." The company is using the revaluation model to account for its structures and revalues them Cullumber uses straight-line depreciation over the asset's 15-year useful life with no residual value. The asset's fair value was equal to its carrying amount on Dec. 31, 2023, and was $3,550,000 on Dec. 31, 2024. Assuming Cullumber uses the asset adjustment (elimination) method for revaluation, prepare all required journal entries for 2024. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, s Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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answer in text form please (without image), Note: .Every entry should have narration please
Cullumber Motels Inc. owns a motel that it had purchased on January 1, 2023, for $3.60 million cash and is accounted for in a separate account, classified as "Buldings." The company is using the revaluation model to account for its structures and revalues them annually. Cullumber uses straight-line depreciation over the asset's 15-year useful life with no residual value. The asset's fair value was equal to its carrying amount on Dec. 31, 2023, and was $3,550,000 on Dec. 31, 2024. Assuming Cullumber uses the asset adjustment (elimination) method for revaluation, prepare all required journal entries for 2023 and 2024. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Date January 1, 2023 December 31, 2023 December 31, 2024 December 31, 2024 Account Titles and Explanation Buildings Cash Depreciation Expense Accumulated Depreciation - Buildings Depreciation Expense Accumulated Depreciation - Buildings (To record 2024 depreciation) Accumulated Depreciation - Buildings Debit 3600000 240000 240000 480000 Credit 360 2. 2₁
Transcribed Image Text:Cullumber Motels Inc. owns a motel that it had purchased on January 1, 2023, for $3.60 million cash and is accounted for in a separate account, classified as "Buldings." The company is using the revaluation model to account for its structures and revalues them annually. Cullumber uses straight-line depreciation over the asset's 15-year useful life with no residual value. The asset's fair value was equal to its carrying amount on Dec. 31, 2023, and was $3,550,000 on Dec. 31, 2024. Assuming Cullumber uses the asset adjustment (elimination) method for revaluation, prepare all required journal entries for 2023 and 2024. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Date January 1, 2023 December 31, 2023 December 31, 2024 December 31, 2024 Account Titles and Explanation Buildings Cash Depreciation Expense Accumulated Depreciation - Buildings Depreciation Expense Accumulated Depreciation - Buildings (To record 2024 depreciation) Accumulated Depreciation - Buildings Debit 3600000 240000 240000 480000 Credit 360 2. 2₁
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