Please answer the following question Must choose from the following LIST OF ACCOUNTS: Accumulated DepletionAccumulated Depreciation - AutomobilesAccumulated Depreciation - BuildingsAccumulated Depreciation - EquipmentAccumulated Depreciation - Furniture and FixturesAccumulated Depreciation - MachineryAccumulated Depreciation - VehiclesAccumulated Impairment Losses - BuildingAccumulated Impairment Losses - EquipmentAccumulated Impairment Losses - LandAccumulated Impairment Losses - MachineryAccumulated Impairment Losses - MineAccumulated Impairment Losses - PatentsAccumulated Impairment Losses - Tools and DiesAccumulated Impairment Losses - VehiclesAsset Retirement ObligationBuildingsCashCommon SharesContribution ExpenseCost of Goods SoldDeferred Revenue - Government GrantsDepreciation ExpenseEquipmentFurniture and FixturesGain on Disposal of AutomobilesGain on Disposal of BuildingGain on Disposal of EquipmentGain on Disposal of Furniture and FixturesGain on Disposal of MachineryGain on Disposal of VehiclesGain on Sale of LandInterest ExpenseInterest PavableInventoryInvestment PropertyLandLiability for Site RestorationLoss on Disposal of AutomobilesLoss on Disposal of BuildingLoss on Disposal of EquipmentLoss on Disposal of MachineryLoss on Disposal of VehiclesLoss on ExpropriationLoss on ImpairmentLoss on Sale of LandMachineryMineral ResourcesNo EntryNotes PayableOil PropertyRecovery of Loss from ImpairmentRepairs and Maintenance ExpenseRetained EarningsRevaluation Surplus (OCI)Revenue - Government GrantsRoyalty ExpenseVehicles Assume that Blue Spruce uses the proportional method to record asset revaluations under the revaluation model. Prepare anyjournal entries required under situation 2 described above for: (1) the fiscal year ended December 31, 2023; (2) the fiscal yearended December 31, 2024; and (3) the disposal of the equipment on March 31, 2025. (Credit account titles are automaticallyindented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O forthe amounts. List all debit entries before credit entries. Do not round intermediate calculations and round answers to O decimal places, e.g.5,275.)No.(1)(2)(3)DateAccount Titles and Explanation(To record depreciation on equipment)(To record revaluation surplus OCI)(To record depreciation on equipment)(To record depreciation on equipment)(To record disposal of equipment)DebitTOUL Blue Spruce Corporation is a public company that manufactures farm implements, such as tractors, combines, and wagons. BlueSpruce uses the revaluation model per IAS 16, and records asset revaluations using the elimination method. (This means the balance inthe Accumulated Depreciation account is eliminated against the asset account just prior to revaluation of the asset to fair value.) Apiece of manufacturing equipment included in the property, plant, and equipment section on Blue Spruce's statement of financialposition was purchased on December 31, 2022, for a cost of $111,000. The equipment was expected to have a remaining useful life of5 years, with benefits being received evenly over the 5 years. Residual value of the equipment was estimated to be $11,000.Consider the following two situations:Situation 1: At December 31, 2023, no formal revaluation is performed, as management determines that the carrying amount of theproperty, plant, and equipment is not materially different from its fair value.Situation 2: At December 31, 2023, a formal revaluation is performed and the independent appraisers assess the equipment's fairvalue to be $100,000. During the revaluation process, it is determined that the remaining useful life of the equipment is four years,with a residual value of $12,000.At December 31, 2024, no formal revaluation is performed, as management determines that the carrying amount of the property,plant, and equipment is not materially different from its fair value. The equipment is sold on March 31, 2025, for $69,000.ePrepare any journal entries required under situation 1 described above for: (1) the fiscal year ended December 31, 2023; (2) thefiscal year ended December 31, 2024; and (3) the disposal of the equipment on March 31, 2025. (Credit account titles areautomatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titlesand enter o for the amounts. List all debit entries before credit entries.)No.(1)(2)Your answer is correct.(3)DateDecember 31, 2023December 31, 2024March 31, 2025March 31, 2025Account Titles and ExplanationDepreciation ExpenseAccumulated Depreciation - EquipmentDepreciation ExpenseAccumulated Depreciation - EquipmentDepreciation ExpenseAccumulated Depreciation - Equipment(To record depreciation on equipment)Cash¶¯¯¯¯¯Accumulated Depreciation - EquipmentEquipmentGain on Disposal of Equipment(To record disposal of equipment)Debit200002000050006900045000

Under this model, a class of fixed assets is revalued to their fair values and then subsequently…

Blue Spruce Corporation is a public company that manufactures farm implements, such as tractors, combines, and wagons. Blue Spruce uses the revaluation model per IAS 16, and records asset revaluations using the elimination method. (This means the balance in the Accumulated Depreciation account is eliminated against the asset account just prior to revaluation of the asset to fair value.) A piece of manufacturing equipment included in the property, plant, and equipment section on Blue Spruce's statement of financial position was purchased on December 31, 2022, for a cost of $111,000. The equipment was expected to have a remaining useful life of 5 years, with benefits being received evenly over the 5 years. Residual value of the equipment was estimated to be $11,000. Consider the following two situations: Situation 1: At December 31, 2023, no formal revaluation is performed, as management determines that the carrying amount of the property, plant, and equipment is not materially different from its fair value. Situation 2: At December 31, 2023, a formal revaluation is performed and the independent appraisers assess the equipment's fair value to be $100,000. During the revaluation process, it is determined that the remaining useful life of the equipment is four years, with a residual value of $12,000. At December 31, 2024, no formal revaluation is performed, as management determines that the carrying amount of the property, plant, and equipment is not materially different from its fair value. The equipment is sold on March 31, 2025, for $69,000.

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q