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Current Attempt in Progress A partial statement of financial position of Cullumber Ltd. on December 31, 2022, showed the following property, plant, and equipment assets accounted for under the cost model (accumulated depreciation includes depreciation for 2022): Buildings Less: Accumulated depreciation Equipment Less: Accumulated depreciation (a) $298,000 98,000 $134.000 Cullumber uses straight-line depreciation for its building (remaining useful life of 20 years, no residual value) and for its equipment. (remaining useful life of 8 years, no residual value). Cullumber applies IFRS and has decided to adopt the revaluation model for its building and equipment, effective December 31, 2022. On this date, an independent appraiser assessed the fair value of the building to be $140,000 and that of the equipment to be $103,000. Account Titles and Explanation (To adjust the Buildings account to fair value) (To eliminate the accumulated depreciation) 54,000 Prepare the necessary general journal entries, if any, to revalue the building and the equipment as at December 31, 2022, using the asset adjustment method. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) (To eliminate the accumulated depreciation) (To adjust the Equipment account to fair value) $200,000 80,000 Debit Credit

Current Attempt in Progress A partial statement of financial position of Cullumber Ltd. on December 31, 2022, showed the following property, plant, and equipment assets accounted for under the cost model (accumulated depreciation includes depreciation for 2022): Buildings Less: Accumulated depreciation Equipment Less: Accumulated depreciation (a) $298,000 98,000 $134.000 Cullumber uses straight-line depreciation for its building (remaining useful life of 20 years, no residual value) and for its equipment. (remaining useful life of 8 years, no residual value). Cullumber applies IFRS and has decided to adopt the revaluation model for its building and equipment, effective December 31, 2022. On this date, an independent appraiser assessed the fair value of the building to be $140,000 and that of the equipment to be $103,000. Account Titles and Explanation (To adjust the Buildings account to fair value) (To eliminate the accumulated depreciation) 54,000 Prepare the necessary general journal entries, if any, to revalue the building and the equipment as at December 31, 2022, using the asset adjustment method. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) (To eliminate the accumulated depreciation) (To adjust the Equipment account to fair value) $200,000 80,000 Debit Credit

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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Current Attempt in Progress A partial statement of financial position of Cullumber Ltd. on December 31, 2022, showed the following property, plant, and equipment assets accounted for under the cost model (accumulated depreciation includes depreciation for 2022): Buildings Less: Accumulated depreciation Equipment Less: Accumulated depreciation (a) $298,000 98,000 $134,000 Cullumber uses straight-line depreciation for its building (remaining useful life of 20 years, no residual value) and for its equipment (remaining useful life of 8 years, no residual value). Cullumber applies IFRS and has decided to adopt the revaluation model for its building and equipment, effective December 31, 2022. On this date, an independent appraiser assessed the fair value of the building to be $140,000 and that of the equipment to be $103,000. Account Titles and Explanation (To adjust the Buildings account to fair value) (To eliminate the accumulated depreciation) 54.000 Prepare the necessary general journal entries, if any, to revalue the building and the equipment as at December 31, 2022, using the asset adjustment method. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) (To eliminate the accumulated depreciation) (To adjust the Equipment account to fair value) $200,000 80,000 Debit Credit
Transcribed Image Text:Current Attempt in Progress A partial statement of financial position of Cullumber Ltd. on December 31, 2022, showed the following property, plant, and equipment assets accounted for under the cost model (accumulated depreciation includes depreciation for 2022): Buildings Less: Accumulated depreciation Equipment Less: Accumulated depreciation (a) $298,000 98,000 $134,000 Cullumber uses straight-line depreciation for its building (remaining useful life of 20 years, no residual value) and for its equipment (remaining useful life of 8 years, no residual value). Cullumber applies IFRS and has decided to adopt the revaluation model for its building and equipment, effective December 31, 2022. On this date, an independent appraiser assessed the fair value of the building to be $140,000 and that of the equipment to be $103,000. Account Titles and Explanation (To adjust the Buildings account to fair value) (To eliminate the accumulated depreciation) 54.000 Prepare the necessary general journal entries, if any, to revalue the building and the equipment as at December 31, 2022, using the asset adjustment method. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) (To eliminate the accumulated depreciation) (To adjust the Equipment account to fair value) $200,000 80,000 Debit Credit
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