ABC Ltd has the following land and buildings in its financial statements as of 30 June 2022: Residential land, at cost 2,553,800 Factory land, at valuation 2020 2,298,420 Buildings, at valuation 2020 2,043,040 Accumulated depreciation -255,380 At 30 June 2022, the balance of the revaluation surplus
ABC Ltd has the following land and buildings in its financial statements as of 30 June 2022: Residential land, at cost 2,553,800 Factory land, at valuation 2020 2,298,420 Buildings, at valuation 2020 2,043,040 Accumulated depreciation -255,380 At 30 June 2022, the balance of the revaluation surplus
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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ABC Ltd has the following land and buildings in its financial statements as of 30 June 2022:
Residential land, at cost
2,553,800
Factory land, at valuation 2020
2,298,420
Buildings, at valuation 2020
2,043,040
Accumulated depreciation
-255,380
At 30 June 2022, the balance of the revaluation surplus is $1,021,520, of which $766,140 relates to the factory land and $255,380 to the buildings. On this same date, independent valuations of the land and buildings are obtained. In relation to the above assets, the assessed fair values at 30 June 2022 are:
Residential land, previously recorded at cost
2,809,180
Factory land, previously revalued in 2020
1,787,660
Buildings, previously revalued in 2020
2,298,420
Required:
Provide the journal entries to account for the revaluation on 30 June 2022. ABC Ltd classifies the residential land and the factory land as different classes of assets.
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