Q6. Land was acquired for $200 000 on 1 July 2017. On 30 June 2018 it has a fair value of $150 000. On 30 June 2020, due to increased population, the land is considered to have a fair value of $270 000. Write the journal entries needed.

Q6. Land was acquired for $200 000 on 1 July 2017. On 30 June 2018 it has a fair value of $150 000. On 30 June 2020, due to increased population, the land is considered to have a fair value of $270 000. Write the journal entries needed.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Red River Bakery purchases land, building, and equipment for a single purchase price of $380,000.…

A: Introduction:- The following formulas used as follows under:- 1)Allocation percentage =Estimated…

Q: net of accumulated amortization,

A: Change in accounting estimate is actually the prospective restatement of financial estimate on…

Q: On October 1, 2022, Verónica purchased a business. Of the purchase price, $192,000 is allocated to a…

A: Amortization is a way of deducting specific capital costs over a certain period of time. The concept…

Q: Pro a land as held for sale. On December 31, 2021, the fair value less cost of disposal of the land…

A: Impairment loss can be calculated as :- Recoverable amount - carrying amount Recoverable…

Q: WITH SOLUTION /COMPUTATION 64.On December 31,2019, an entity sold a machine with useful life of 10…

A: Calculation of the amount of Revenue to be reported from the sale of such machine in 2019::: Sale…

Q: 42 Dhofar LLC acquired an asset on 1st January 2019 for OMR 500,000 and the rate of depreciation is…

Q: Company A. purchased equipment for 95,000 on 1/1/2020. What is the book value of the equipment on…

A: In this question covered the concept of book value. An asset book value is derived by = (original…

Q: Euclid acquires a 7-year class asset on May 9, 2020, for $96,600 (the only asset acquired during the…

A: Cost Recovery Deduction: When a company uses depreciation, amortisation, or depletion to reduce the…

Q: On January 3, 2019, Soju Co. purchased machinery. The machinery has an estimated useful life of…

A: The depreciation is a decline in the value of tangible assets over their useful life. it is a…

Q: Martinez Industries Ltd. acquired two copyrights during 2023. One copyright was on a textbook that…

A: Intangible asset is one of the types of assets which have no physical substance. It includes…

Q: riole Company purchased land in 2022 for $354,000. The land's fair value at the end of 2022 is…

A: Under revaluation accounting, the value of an asset is adjusted to its fair value at the end of each…

Q: A consulting company is buying a new computer system for their headquarters for $175,000. The asset…

A: New Computer Cost = $175,000 Asset Life = 5 Years

Q: Assume Riverbed Manufacturing Company purchased land, a building, and some equipment on July 31,…

A: The land, building and equipment are record under the property, plant and equipment under the…

Q: On January 1, 2022, ABC Company buys three hectares of land for exactly P800,000 with the amount to…

A: The notes payable is the financial instruments recorded as liability on the balance sheet, the…

Q: Tanaka Company has land that cost $15,000,000. Its fair value on December 31, 2017, is $20,000,000.…

A: Assets are carried at the fair value on the date of revaluation under revaluation model for…

Q: ассо apath Larry Pon, which of the following is the lifetime limit for the Nonbusiness Energy…

A: According to Ian Redpath and Larry Pon lifetime credit was basically a 10% credit if you made…

Q: Prepare the journal entry for the purchase of tha land..

A: To compute the cost of the land for Tesla Corporation, we need to calculate the present value of the…

Q: Wayne Co. buys land for $145,000 in 2021. As of 3/31/22, the land has appreciated in value to…

A: Cost concept is the important concept to maintain the Assets accounts of the organization.…

Q: Clarke Inc. owns an investment property with the following data: |Cost - January 1, 2015 Fair value…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Suppose that examining a pro forma reveals that the fifth-year net operating income (NOI) for the…

A: A property's projected value based on its net operating income (NOI) and capitalization rate is…

Q: arket value of

A: Depreciation is a demunition [reduction] in the value of an asset on…

Q: Abesu Inc. purchased equipment costing $20,000 on January 1, 2019. The equipment amortizes at a rate…

A: Here in this question, we are required to calculate amortization expense. Amortization expense is an…

Q: On October 1, 2023, Verónica purchased a business. Of the purchase price, $66,000 is allocated to a…

A: Intangible assets are non-physical assets that have no inherent value and cannot be touched or seen.…

Q: Blossom Real Estate Balance Sheet December 31, 2020 Cash $ 25400 Accounts Payable $ 60700 Prepaid…

A: Let's understand the basics Investments specifically, from an accounting perspective an investment…

Q: BE12-2 (L01,2) Use the information provided in BE12-1. Assume that at January 1, 2019, the carrying…

A: Cost incurred in successful defense of a patent if infringed during its economic life is…

Q: WhyRU Company usually depreciates its equipment using straight line method for accounting purposes,…

A: Deferred Tax asset & Liability: Deferred tax liability is the amount income tax payable in…

Q: In 2014, Parker Company purchased land for $115,000 at a time when the land was appraised at…

A: The historical cost concept is one of the fundamental principles of Generally Accepted Accounting…

Q: Current Attempt in Progress Your answer is partially correct. Waterway Ltd. owns land that it…

A: Revaluation accounting is the process of determining an asset's current fair value by reevaluating…

Q: Journal entry is required to record the revaluation? What entry would've been made if the fair value…

A: The Preparation Journal Entry is as follows Date Particular…

Q: Mr Cruz, procured a tract of timber for P65,000. The worth of the land was established tobe P17,000…

A: The depletion is a method of accrual accounting that is used to calculate the cost of extracting…

Q: What is the market value (V) of a property that has an NOI of $56,000 and a land value (V) of…

A: The net operating income (NOI) is 56,000.The value of the land (VL) is $150,000.The RL is 7%.The RB…

Q: ce for RM120,000. In order for Komano Berhad to effectively use the site, a vacant and unoccupied…

A: Malasian Financial Reporting Standard 116 aims at proper…

Q: Calculate the assessed value for a piece of property worth $1,472,000.00 at an assessment rate of…

A: Assessed value is the value of a property as determined by a government tax assessor for the purpose…

Q: On 1 April 2014, Live Land Limited acquired a piece of freehold land at Jalan Sultan at a cost…

A: Since the asset is purchased against bank loan liability will increase and asset side also increases…

Q: 48.) PLEASE ANSWER NOW PLEASE

A: Capital gain tax is calculated on principal residence @ 6% of the…

Q: On January 1, 2023, Creative Calligraphy Inc. purchased land, building, equipment, and tools for a…

A: The double-declining balance method is a depreciation method that assumes an asset will depreciate…

Q: Exercise 8-26 (Algorithmic) (LO. 7) On October 1, 2021, Verónica purchased a business. Of the…

A: Intangible assets are non-physical assets that have no inherent value and cannot be touched or seen.…

Q: Marko Corporation has several assets for classification as biological assets. After reviewing the…

A: Biological Assets refers to those assets which are living such as the trees, animals, or any living…

Q: Bella Inc. has invested in a piece of land on January 1, 2022. The company uses the revaluation…

A: Revaluation reserve created for recognizing Land at fair market value during year end. At the time…

Q: Current Attempt in Progress Joseph Geary, the controller of Carla Vista Company, has reviewed the…

A: All assets value goes down due to time being and that decrease in value is depreciation of building…

Q: owned by Caesar. The configuration of cash flows from land acquired is expected to be significantly…

A: At P4,800,000 amount should cleopatra record the land acquired in the exchange.

Q: 01. Martin owns land that is classified as PPE. The land has previously been valued at cost. The…

A: “Since you have posted multiple questions, we will provide the solution only to the first question…

Q: XYZ, a manufacturing company, purchases a property for Ghs1m on 1 January 2016 for its investment…

A: Fixed Assets These are those assets that are bought by the company for long-term use in the…

Q: Sadaf Oman Company purchased a land for RO 250,000 in 2010. In October 2020, the company Mold this…

A: Equity refers to the total value which is expected to return to a company's shareholders when all of…

Q: A $48,000 asset was purchased and classified as a Class 10 asset for CCA purposes. If the CCA rate…

A: UCC is the undepreciated capital cost which is the capital balance after series of depreciation. CCA…

Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

V6. A company purchases land, building and equipment for $1,500,000. An independent appraisal shows that the best available indications of fair value at the time of purchase are: land: $760,000; building: $540,000; and equipment: $320,000. The purchase is financed through long-term debt. Required: Prepare the journal entry to record the purchase Prepare the journal entry to record the purchase:
Land and buildings: Cost (including ¢60m land). ¢380000 Accumulated depreciation at 1/1/2020 ¢64000 The company decided to change its accounting policy with respect to its 10 year old land and buildings from the cost model to the revaluation model. The revalued amounts at 1 January 2020 were GH¢800m (including GH¢100m for the land). No further revaluation was necessary at 31 December 2020. The company wishes to treat the revaluation surplus as being realised over the life of the asset. Your are required to account for the above information.
BE9.5 (LO 2) Kowloon Group purchased land and a building on January 1, 2020. Management's best estimate of the value of the land was HK$1,000,000 and of the building HK$2,000,000. However, management told the accounting department to record the land at HK$2,250,000 and the building at HK$750,000. The building is being depreciated on a straight-line basis over 20 years with no residual value. Why do you suppose management requested this accounting treatment? Is it ethical? Compute depreciation and evaluate treatment.
Please answer competely
What is the return on total assets given the figures attached?
Sh9
Q5.
What is the adjusted carrying amount of the land? a. 3,100,000 b. 3,300,000 c. 3,000,000 d. 3,250,000
Agri-Corp. provided you details on items relating to its biological assets. How much should be reported as gain on change in fair value of biological assets for the six-month period ending June 31, 2020? Fruit trees, at net realizable value Fruit growing on the trees Original cost Jan. 1, 2020 June 31, 2020 P1,200,000 200,000 P 800,000 P 1,000,000 100,000 Cattles 50,000 60,000 64,800 Cattles purchased on May 30, 2020 9.000 9,500 Note: solutions must be in good accounting form
Question 1 Focus Eye Bhd has adopted the revaluation model and the following information is related to its freehold land. Cost as at 31 Dec 2015 Fair value as at 31 Dec 2015 Fair Value as at 31 Dec 2016 Freehold land X RM1,000,000 RM1,200,000 RM900,000 Freehold Land Y RM1,100,000 RM800,000 RM1,200,000 Required: Show the journal entries to record the surplus or deficit on revaluation for the year ended 31 December 2015 and 2016. Show the extract of the statement of profit or loss and other comprehensive income for the year ended 31 December 2015 and 2016.
ABC has an asset that was classified as held for sale at 31 March 2019. The asset had a carryingamount of P900 and a fair value of P800. The cost of disposal was estimated to be P50.According to PFRS 5 Non-current Assets Held for Sale and Discontinued Operations, whichvalue should be used for the asset as at 31 March 2019? * P750 P800 O P850 P900
11:39 Module1_PPE and .. Problem 28-13 (AICPA Adapted) In 2019, Lepanto Mining Company purchased property with natural resources for P28,000,000. The property had a residual value of P5,000,000. However, the entity is required to restore the property to the original condition at a discounted amount of P2,000,000. In 2019, the entity spent P1,000,000 in development cost . and constructed a building on the property costing P3,000,000. The entity does not anticipate that the building will have utility after the natural resources are removed. In 2020, an amount of P1,000,000 was spent for additional development on the mine. The tonnage mined and estimated remaining tons are: Tons extracted Tons remaining 2019 2020 3,000,000 3,500,000 10,000,000 7,000,000 2,500,000 2021 1. What amount should be recognized as depletion for 2020? a. 6,900,000 b. 9,600,000 c. 8,100,000 d. 8,400,000 2. What amount should be recognized as depletion for 2021? a. 10,150,000 b. 11,025,000 c. 15,750,000 d. 9,450,000