And c. Land and d. Factory building journal formal For each of the following scenarios, indicate whether a long-term asset has been impaired (Y for yes and N for no) and, if so, the amount of theloss that should be recorded. Prepare any necessary journal entry.(Click the icon to view the scenarios.)Asseta. Equipmentb. TrademarkC.Landd. Factory buildingDateCarrying Amount$230,000$370,000$54,000$4 millionb. TrademarkAccountsLoss on ImpairmentEquipmentValue in Use$190,000$510,000$26,000$4 millionPrepare the necessary journal entries for any impairment. (Record debits first, then credits. Explanations are not required. If no journalentry is required, select "No entry required" on the first line of the journal entry. Leave unused cells blank.)a. EquipmentFair ValueDebitImpaired (Y Amount ofor N)LossY$150,000$425,000$23,000$2 million NNYCredit

Lets understand the basics.As per IAS 36 "Impairement of assets", all the assets needs to held in…

at should be recorded. Prepare any necessary journal entry. lick the icon to view the scenarios.) Asset uipment ademark nd Carrying Amount $230,000 $370,000 $54,000 Value in Use $190,000 $510,000 $26,000 Fair Value $150,000 $425,000 $23,000 Impaired (Y Amount of or N) Loss Y N Y

at should be recorded. Prepare any necessary journal entry. lick the icon to view the scenarios.) Asset uipment ademark nd Carrying Amount $230,000 $370,000 $54,000 Value in Use $190,000 $510,000 $26,000 Fair Value $150,000 $425,000 $23,000 Impaired (Y Amount of or N) Loss Y N Y

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: Recording the cost of raw materials purchased for use in a process costing system includes a a.…

A: The raw materials are the inventory for the goods to be prepared in the business. It is assigned…

Q: ournal entries? Work in Process-Department B and credit Work in rtment A Finished Goods-Department A…

A: In process cost system, goods are manufactured under multiple processes before they complete. They…

Q: When the purchase of materials is journalized in a process cost accounting system, the materials…

A: Journalization refers to the process of recording each and every business transaction having…

Q: Manufacturing Overhead is a(n)__. a. Equity b. sub-account. c. Liability d. Asset

A: Manufacturing overhead, also known as factory overhead or indirect production costs, refers to the…

Q: Factory overhead includes Oa. direct materials and direct labor Ob. indirect labor and indirect…

A: Factory overhead is the total of indirect expenses incurred during the period of time. Indirect…

Q: . Which of these forms has additional lines for overhead application? a.Work-in-process inventory…

A: Overhead application refers to the assignment of the costs of factory overhead to the produced units…

Q: Use of direct and indirect materials in production requires a credit to

A: Raw material: Raw material is the material used in production which can be converted to final…

Q: What is the correct order of the inventories in regards to processing? Group of answer choices a…

A: Inventories are the collection of all those units which are available in enterprise in the form of…

Q: Prepare the journal entries for material and labor using standard costing.

A: Journal entry is the entry which is recorded on the journal book of the company which is also known…

Q: Which of the following are the two main types of cost accounting systems for manufacturing…

A: The two main types of cost accounting systems for manufacturing operations are:Job order costing…

Q: cturing Overhead. credit to job cost sh

A: Overhead application is recorded with a . Credit to Manufacturing Overhead

Q: If selling and administrative expenses are allocated to different products, they should be reported…

A: Period costs: These costs are not related to inventory, hence, they are not added to inventory…

Q: Which of the following is used when raw materials are purchased to be used in the manufacturing…

A: The raw materials are purchased for the production purpose in the business.

Q: When direct and indirect materials are issued into production from storage, an entry is made…

A: Direct material should be credited to work in process and indirect material to factory overhead.

Q: Which of the following inventories would a company ordinarily hold for sale? O a. Work in process.

A: Inventory- An essential current asset for a manufacturing company is its inventory. The tangible…

Q: Which of the following are basic inventories for a manufacturer ? a. Finished goods, raw…

A: materials can be in any form during the year, it may be Raw materials Work in progress Finished…

Q: The most sector needs the cost accounting information is Select one: a. Manufacturing sector b. Bank…

A: Cost accounting information includes the information related to: Total Cost of producing the…

Q: Explain manufacturing activities and the flow of manufacturing costs

A: Manufacturing activity: Manufacturing activity comprises of materials, production and sales…

Q: Which of the following is classified as an item that is used in the creation of a product? Work…

A: Product costs: Product costs are those which are incurred in the production of goods. This shall…

Q: Give the journal entry for raw materials product on account. Explain how this transaction affects…

A: The raw material inventory is a general ledger account. The details of raw material purchased and…

Q: Question1. What is the process costing income statement? Provide a hypothetical example of a…

A: Process costing is a term used in cost accounting to describe one method for collecting and…

Q: how to allocate manufacturing overhead by department?

A: Manufacturing overhead costs: The costs, which do not relate openly with the manufacturing of…

Q: r of indirect materials, such as nails and screv count? nished goods inventory vork-in-process…

A: When production takes place , raw material cost , labour cost and manufacturing overhead cost are…

Question

And c. Land and d. Factory building journal formal

For each of the following scenarios, indicate whether a long-term asset has been impaired (Y for yes and N for no) and, if so, the amount of the
loss that should be recorded. Prepare any necessary journal entry.
(Click the icon to view the scenarios.)
Asset
a. Equipment
b. Trademark
C.
Land
d. Factory building
Date
Carrying Amount
$230,000
$370,000
$54,000
$4 million
b. Trademark
Accounts
Loss on Impairment
Equipment
Value in Use
$190,000
$510,000
$26,000
$4 million
Prepare the necessary journal entries for any impairment. (Record debits first, then credits. Explanations are not required. If no journal
entry is required, select "No entry required" on the first line of the journal entry. Leave unused cells blank.)
a. Equipment
Fair Value
Debit
Impaired (Y Amount of
or N)
Loss
Y
$150,000
$425,000
$23,000
$2 million N
N
Y
Credit

Expert Solution

This question has been solved!

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

SEE SOLUTION Check out a sample Q&A here

Step 1: Understanding of impairement loss

VIEW

Step 2: Calculating impairement loss

VIEW

Step 3: Journal entry of impairement loss

VIEW

Solution

VIEW

Step by step

Solved in 4 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

Which of the following accounts would be debited in the journal entry to record the issuance of direct materials? O A. Cost of Goods Sold O B. Finished Goods Inventory OC. Raw Materials Inventory O D. Work-in-Process Inventory
Describe the Cost flows and their classifications in a manufacturing company?
Define the term manufacturing company.
9. The entry to record a transfer of direct materials for use in production would include a debit to which account? O finished goods inventory O materials inventory O work-in-process inventory O cost of goods manufactured
Journalize the entries for costs transferred from Milling to Sifting and the costs transferred from Sifting to Packaging.
system Which accounts can we find the cost of goods manufactured? (check all that apply) Direct Material Direct Labor Overhead Work in Process Finished Goods Cost of Goods Sold SUBMIT
20. Direct material is a ________. a. Selling and distribution cost b. Manufacturing cost c. Administration cost d. Factory overhead
The cost of materials used on a specific job is first captured on which source document? Select one: O a. Materials requisition form Ob. Process cost sheet Oc. Labor time ticket Od. Cost driver sheet
Describe the types of manufacturing overhead.
Manufacturing overhead consists of all Manufacturing overhead consists of all a.costs other than direct materials and direct labor. b.manufacturing costs other than direct materials. c.manufacturing costs other than direct materials and direct labor. d.costs other than direct materials.
Defining terminology Match the following terms to their definitions.
1. Following are the inventories of Manufacturing Concern except:a. Fuel and Powerb. Work-in Processc. Finished Goodsd. Raw Materials