On October 1, 2020, Ocean Airways Ltd. purchased a new commercial aircraft for a total cost of $118.00 million. Included in the total cost are the aircraft's 2 engines, at a cost of $11.80 million each, and the aircraft's body, which costs $94.40 million. The estimated useful life of each of the aircraft's 2 engines is 10 years, with a residual value of $1.18 millio The estimated useful life of the aircraft's body is 10 years, with a residual value of $5.90 million. The entire aircraft's useful life is limited to the life of the aircraft's body. (a) Prepare the journal entries required on October 1, 2020, and December 31, 2020, if Ocean Airways prepares financial statements in accordance with IFRS and uses straight-line depreciation. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for th account titles and enter 0 for the amounts.) Account Titles and Explanation Date October 1, 2020 December 31, 2020 + ♦ + # Debit Credit

On October 1, 2020, Ocean Airways Ltd. purchased a new commercial aircraft for a total cost of $118.00 million. Included in the total cost are the aircraft's 2 engines, at a cost of $11.80 million each, and the aircraft's body, which costs $94.40 million. The estimated useful life of each of the aircraft's 2 engines is 10 years, with a residual value of $1.18 millio The estimated useful life of the aircraft's body is 10 years, with a residual value of $5.90 million. The entire aircraft's useful life is limited to the life of the aircraft's body. (a) Prepare the journal entries required on October 1, 2020, and December 31, 2020, if Ocean Airways prepares financial statements in accordance with IFRS and uses straight-line depreciation. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for th account titles and enter 0 for the amounts.) Account Titles and Explanation Date October 1, 2020 December 31, 2020 + ♦ + # Debit Credit

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 13P

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