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Entity A is a listed company in Hong Kong. Entity A owns a plant that was originally purchased for $999,000 on 1 January 2020. The economic life is 9 years. On 31 December 2022, the plant was revalued to $987,000. The upward revaluation was recognised as other comprehensive incom and recorded in the revaluation reserve as a surplus. On 31 December 2023, the recoverable amount of the plant was estimated at only $424,000. REQUIRED: According to the accounting standards, prepare the relevant journal entries related to the impairment loss on 31 December 2023.

Entity A is a listed company in Hong Kong. Entity A owns a plant that was originally purchased for $999,000 on 1 January 2020. The economic life is 9 years. On 31 December 2022, the plant was revalued to $987,000. The upward revaluation was recognised as other comprehensive incom and recorded in the revaluation reserve as a surplus. On 31 December 2023, the recoverable amount of the plant was estimated at only $424,000. REQUIRED: According to the accounting standards, prepare the relevant journal entries related to the impairment loss on 31 December 2023.

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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Fill according to the calendar dates in the journal entry section. Please put the date beside your answer. Follow exactly according to the above journal entries, inputting answers to each and every one of the blanks. 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.
QUESTION 5 Entity A is a listed company in Hong Kong. Entity A owns a plant that was originally purchased for $999,000 on 1 January 2020. The economic life is 9 years. On 31 December 2022, the plant was revalued to $987,000. The upward revaluation was recognised as other comprehensive income and recorded in the revaluation reserve as a surplus. On 31 December 2023, the recoverable amount of the plant was estimated at only $424,000. REQUIRED: According to the accounting standards, prepare the relevant journal entries related to the impairment loss on 31 December 2023. ACCOUNTS FOR INPUT: | Plant | Motor van | Machine | Land | Building | Bank | Payable | Receivable | No entry | | Retained earnings | Other income | Other expense |Interest expense | Interest revenue | | Depreciation | Accum. depreciation | Impairment loss | Reversal of impairment loss | | Restoration liability | Loss on disposal | Gain on disposal | Revaluation surplus | Revaluation deficit | | Reversal of revaluation surplus | Reversal of revaluation deficit | ANSWERS: Journal Entries: Date 31-Dec-23 31-Dec-23 31-Dec-23 Account Name Debit ($) Credit ($) Hints For Sequence
Transcribed Image Text:QUESTION 5 Entity A is a listed company in Hong Kong. Entity A owns a plant that was originally purchased for $999,000 on 1 January 2020. The economic life is 9 years. On 31 December 2022, the plant was revalued to $987,000. The upward revaluation was recognised as other comprehensive income and recorded in the revaluation reserve as a surplus. On 31 December 2023, the recoverable amount of the plant was estimated at only $424,000. REQUIRED: According to the accounting standards, prepare the relevant journal entries related to the impairment loss on 31 December 2023. ACCOUNTS FOR INPUT: | Plant | Motor van | Machine | Land | Building | Bank | Payable | Receivable | No entry | | Retained earnings | Other income | Other expense |Interest expense | Interest revenue | | Depreciation | Accum. depreciation | Impairment loss | Reversal of impairment loss | | Restoration liability | Loss on disposal | Gain on disposal | Revaluation surplus | Revaluation deficit | | Reversal of revaluation surplus | Reversal of revaluation deficit | ANSWERS: Journal Entries: Date 31-Dec-23 31-Dec-23 31-Dec-23 Account Name Debit ($) Credit ($) Hints For Sequence
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