Homework Help is Here – Start Your Trial Now!
Business
Accounting
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 Reporting, Financial Statement Analysis and Valuation
Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter8: Investing Activities
Section: Chapter Questions
Problem 1.3AIC: Estimate the average total estimated useful life of depreciable property, plant, and equipment....
See similar textbooks
icon
Related questions
Topic Video
Question

answer this with the correct accounts and numbers

Note:-

  • Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
  • Answer completely.
  • You will get up vote for sure.
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
Expert Solution
steps

Step by step

Solved in 3 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Depreciation Accounting
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
  • SEE MORE QUESTIONS
Recommended textbooks for you
Financial Reporting, Financial Statement Analysis…
Financial Reporting, Financial Statement Analysis…
Finance
ISBN:
9781285190907
Author:
James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS