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Black and Green Inc. applies revaluation to machinery that has a carrying amount of $25,000 on December 31, 2019. There is an accumulated depreciation regarding the machinery on December 31, 2019: $2,000 There is $5,000 revaluation surplus in relation to the asset from previous years. At the end of 2019, independent appraisers determine that the asset has a fair value of $10,000 In the accounting policy of the Company regarding the realization of the revaluation surplus: The Company transfers the revaluation surplus directly to the retained earnings when the asset is derecognized. Required Show the double journal entries regarding the revaluation. Use the table below for double journal entries. The number of rows in the table does not necessarily match the number of rows to be used. Meaning: there could be additional lines.

Black and Green Inc. applies revaluation to machinery that has a carrying amount of $25,000 on December 31, 2019. There is an accumulated depreciation regarding the machinery on December 31, 2019: $2,000 There is $5,000 revaluation surplus in relation to the asset from previous years. At the end of 2019, independent appraisers determine that the asset has a fair value of $10,000 In the accounting policy of the Company regarding the realization of the revaluation surplus: The Company transfers the revaluation surplus directly to the retained earnings when the asset is derecognized. Required Show the double journal entries regarding the revaluation. Use the table below for double journal entries. The number of rows in the table does not necessarily match the number of rows to be used. Meaning: there could be additional lines.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Black and Green Inc. applies revaluation to machinery that has a carrying amount of $25,000 on December 31, 2019. There is an accumulated depreciation regarding the machinery on December 31, 2019: $2,000 There is $5,000 revaluation surplus in relation to the asset from previous years. At the end of 2019, independent appraisers determine that the asset has a fair value of $10,000 In the accounting policy of the Company regarding the realization of the revaluation surplus: The Company transfers the revaluation surplus directly to the retained earnings when the asset is derecognized. Required Show the double journal entries regarding the revaluation. Use the table below for double journal entries. The number of rows in the table does not necessarily match the number of rows to be used. Meaning: there could be additional lines. 1 A▾ Debit Record BIUS I Credit Record Amount 흐음 EE !!! III € OC
Transcribed Image Text:Black and Green Inc. applies revaluation to machinery that has a carrying amount of $25,000 on December 31, 2019. There is an accumulated depreciation regarding the machinery on December 31, 2019: $2,000 There is $5,000 revaluation surplus in relation to the asset from previous years. At the end of 2019, independent appraisers determine that the asset has a fair value of $10,000 In the accounting policy of the Company regarding the realization of the revaluation surplus: The Company transfers the revaluation surplus directly to the retained earnings when the asset is derecognized. Required Show the double journal entries regarding the revaluation. Use the table below for double journal entries. The number of rows in the table does not necessarily match the number of rows to be used. Meaning: there could be additional lines. 1 A▾ Debit Record BIUS I Credit Record Amount 흐음 EE !!! III € OC
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