10,000,000 Machinery Equipment 3,000,000 10 t the beginning of 2019, a revaluation of property items was made by professionally qualified valuers. hile no change in the life of the assets was indicated, it was ascertained that replacement cost of the sets acquired in 2016 had increased by the following percentage: Land 100% 80% Building Machinery Equipment vas authorized that such revaluation be recorded in the accounts and that depreciation be recorded on basis of revalued amount. 50% 40% Required: a. Prepare journal entry to record the revaluation on January 1, 2019. b. Prepare the journal entry to record the depreciation for 2019. c. Prepare the journal entry to record the piecemeal realization of the revaluation surplus. d. Present the assets in the statement of financial position on December 31, 2019.
10,000,000 Machinery Equipment 3,000,000 10 t the beginning of 2019, a revaluation of property items was made by professionally qualified valuers. hile no change in the life of the assets was indicated, it was ascertained that replacement cost of the sets acquired in 2016 had increased by the following percentage: Land 100% 80% Building Machinery Equipment vas authorized that such revaluation be recorded in the accounts and that depreciation be recorded on basis of revalued amount. 50% 40% Required: a. Prepare journal entry to record the revaluation on January 1, 2019. b. Prepare the journal entry to record the depreciation for 2019. c. Prepare the journal entry to record the piecemeal realization of the revaluation surplus. d. Present the assets in the statement of financial position on December 31, 2019.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please answer the required question D. Thank you
Transcribed Image Text:Machinery
Equipment
10,000,000
3,000,000
10
At the beginning of 2019, a revaluation of property items was made by professionally qualified valuers.
While no change in the life of the assets was indicated, it was ascertained that replacement cost of the
assets acquired in 2016 had increased by the following percentage:
100%
80%
Land
Building
Machinery
Equipment
50%
40%
It was authorized that such revaluation be recorded in the accounts and that depreciation be recorded on
the basis of revalued amount.
Required:
a. Prepare journal entry to record the revaluation on January 1, 2019.
b. Prepare the journal entry to record the depreciation for 2019.
c. Prepare the journal entry to record the piecemeal realization of the revaluation surplus.
d. Present the assets in the statement of financial position on December 31, 2019.
Transcribed Image Text:Problem 5:
On January 1, 2016, Greenhills Company acquired property, plant and equipment for each as follows:
Cost
Life in years
5,000,000
25,000,000
Land
Building
25
12
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