On 30 June 2021, the carrying amounts of the assets of a CGU are as follows: Assets Cash $10,000 $30,000 ($5,000) $50,000 $200,000 (S80,000) $400,000 ($120,000) $25,000 Accounts Receivable Allowance for doubtful debts Inventories Machinery Accumulated depreciation - machinery Building Accumulated depreciation - building Goodwill Additional information on 30 June 2021: The recoverable amount of the unit is assessed to be $460,000. The receivables are considered to be collectable, except those considered doubtful. The fair value of building is $265,000. Required: Prepare all necessary journal entries to record the impairment loss of the CGU for the year ended 30 June 2021.lgnore any tax effect.
On 30 June 2021, the carrying amounts of the assets of a CGU are as follows: Assets Cash $10,000 $30,000 ($5,000) $50,000 $200,000 (S80,000) $400,000 ($120,000) $25,000 Accounts Receivable Allowance for doubtful debts Inventories Machinery Accumulated depreciation - machinery Building Accumulated depreciation - building Goodwill Additional information on 30 June 2021: The recoverable amount of the unit is assessed to be $460,000. The receivables are considered to be collectable, except those considered doubtful. The fair value of building is $265,000. Required: Prepare all necessary journal entries to record the impairment loss of the CGU for the year ended 30 June 2021.lgnore any tax effect.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:On 30 June 2021, the carrying amounts of the assets of a CGU are as follows:
Assets
Cash
$10,000
$30,000
($5,000)
$50,000
$200,000
(S80,000)
$400,000
($120,000)
$25,000
Accounts Receivable
Allowance for doubtful debts
Inventories
Machinery
Accumulated depreciation - machinery
Building
Accumulated depreciation - building
Goodwill
Additional information on 30 June 2021:
The recoverable amount of the unit is assessed to be $460,000.
The receivables are considered to be collectable, except those considered doubtful.
The fair value of building is $265,000.
Required:
Prepare all necessary journal entries to record the impairment loss of the CGU for the
year ended 30 June 2021.lgnore any tax effect.
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!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education