Prepare journal entries for this ec
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Complete this question by entering your answers in the tabs below.
Required A Required B
Prepare journal entries for this equipment for the years ending December 31, 2020, and December 31, 2021, under (1) U.S.
GAAP and (2) IFRS. (If no entry is required for a transaction/event, select "No journal entry required" in the first account
field.)
No
Answer is not complete.
1
Date
01/01/2020
General Journal
Depreciation expense
Accumulated depreciation-Equipment
< Required A
X
Required B >
Debit
12,600
Credit
12,600](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8adb85da-971d-4623-a180-0e1ac732a1c4%2Fe1101881-02e6-4519-aa2f-e0d17a27afca%2Fprojnhq_processed.png&w=3840&q=75)
Transcribed Image Text:Complete this question by entering your answers in the tabs below.
Required A Required B
Prepare journal entries for this equipment for the years ending December 31, 2020, and December 31, 2021, under (1) U.S.
GAAP and (2) IFRS. (If no entry is required for a transaction/event, select "No journal entry required" in the first account
field.)
No
Answer is not complete.
1
Date
01/01/2020
General Journal
Depreciation expense
Accumulated depreciation-Equipment
< Required A
X
Required B >
Debit
12,600
Credit
12,600
![Problem 11-26 (Algo) (LO 11-9)
Parnell Company acquired construction equipment on January 1, 2020, at a cost of $77,000. The equipment was expected to have a
useful life of five years and a residual value of $14,000 and is being depreciated on a straight-line basis. On January 1, 2021, the
equipment was appraised and determined to have a fair value of $73,600, a salvage value of $14,000, and a remaining useful life of
four years. In measuring property, plant, and equipment subsequent to acquisition under IFRS, Parnell would opt to use the revaluation
model in IAS 16.
Assume that Parnell Company is a U.S.-based company that is Issuing securities to foreign Investors who require financial statements
prepared in accordance with IFRS. Thus, adjustments to convert from U.S. GAAP to IFRS must be made. Ignore Income taxes.
Required:
a. Prepare journal entries for this equipment for the years ending December 31, 2020, and December 31, 2021, under (1) U.S. GAAP
and (2) IFRS.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8adb85da-971d-4623-a180-0e1ac732a1c4%2Fe1101881-02e6-4519-aa2f-e0d17a27afca%2Fgwtwwji_processed.png&w=3840&q=75)
Transcribed Image Text:Problem 11-26 (Algo) (LO 11-9)
Parnell Company acquired construction equipment on January 1, 2020, at a cost of $77,000. The equipment was expected to have a
useful life of five years and a residual value of $14,000 and is being depreciated on a straight-line basis. On January 1, 2021, the
equipment was appraised and determined to have a fair value of $73,600, a salvage value of $14,000, and a remaining useful life of
four years. In measuring property, plant, and equipment subsequent to acquisition under IFRS, Parnell would opt to use the revaluation
model in IAS 16.
Assume that Parnell Company is a U.S.-based company that is Issuing securities to foreign Investors who require financial statements
prepared in accordance with IFRS. Thus, adjustments to convert from U.S. GAAP to IFRS must be made. Ignore Income taxes.
Required:
a. Prepare journal entries for this equipment for the years ending December 31, 2020, and December 31, 2021, under (1) U.S. GAAP
and (2) IFRS.
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