The information that follows relates to equipment owned by Headlands Limited at December 31, 2023: Cost Accumulated depreciation to date $4,590,000 510,000 Expected future net cash flows (undiscounted) 3,570,000 Expected future net cash flows (discounted, value in use) 3,238,500 Fair value 3,162,000 Costs to sell (costs of disposal) 25,500 Assume that Headlands will continue to use this asset in the future. As at December 31, 2023, the equipment has a remaining useful life of four years. Headlands uses the straight-line method of depreciation. Assume that Headlands is a public company that follows IFRS. Prepare the journal entry at December 31, 2023, to record asset impairment, if any. (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 debit entry before credit entry.) Date Account Titles and Explanation December 31, 2023 Debit Credit Prepare the journal entry to record depreciation expense for 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 debit entry before credit entry.) No. Date Account Titles and Explanation (2) December 31, 2024 Debit Credit The equipment's fair value at December 31, 2024, is $3.32 million. Prepare the journal entry, if any, to record the increase in fair value. (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 debit entry before credit entry.) Date Account Titles and Explanation December 31, 2024 Debit Credit
The information that follows relates to equipment owned by Headlands Limited at December 31, 2023: Cost Accumulated depreciation to date $4,590,000 510,000 Expected future net cash flows (undiscounted) 3,570,000 Expected future net cash flows (discounted, value in use) 3,238,500 Fair value 3,162,000 Costs to sell (costs of disposal) 25,500 Assume that Headlands will continue to use this asset in the future. As at December 31, 2023, the equipment has a remaining useful life of four years. Headlands uses the straight-line method of depreciation. Assume that Headlands is a public company that follows IFRS. Prepare the journal entry at December 31, 2023, to record asset impairment, if any. (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 debit entry before credit entry.) Date Account Titles and Explanation December 31, 2023 Debit Credit Prepare the journal entry to record depreciation expense for 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 debit entry before credit entry.) No. Date Account Titles and Explanation (2) December 31, 2024 Debit Credit The equipment's fair value at December 31, 2024, is $3.32 million. Prepare the journal entry, if any, to record the increase in fair value. (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 debit entry before credit entry.) Date Account Titles and Explanation December 31, 2024 Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The information that follows relates to equipment owned by Headlands Limited at December 31, 2023:
Cost
Accumulated depreciation to date
$4,590,000
510,000
Expected future net cash flows (undiscounted)
3,570,000
Expected future net cash flows (discounted, value in use)
3,238,500
Fair value
3,162,000
Costs to sell (costs of disposal)
25,500
Assume that Headlands will continue to use this asset in the future. As at December 31, 2023, the equipment has a remaining useful
life of four years. Headlands uses the straight-line method of depreciation. Assume that Headlands is a public company that follows
IFRS.
Prepare the journal entry at December 31, 2023, to record asset impairment, if any. (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 debit entry before credit entry.)
Date Account Titles and Explanation
December
31, 2023
Debit
Credit
Prepare the journal entry to record depreciation expense for 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 debit
entry before credit entry.)
No.
Date
Account Titles and Explanation
(2)
December
31, 2024
Debit
Credit
The equipment's fair value at December 31, 2024, is $3.32 million. Prepare the journal entry, if any, to record the increase in fair
value. (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 debit entry before credit entry.)
Date
Account Titles and Explanation
December
31, 2024
Debit
Credit
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