Please answer the required part: the letters a,b,c and d. Please answer it with complete solutions with explanation. Thank you Problem 29-7. (IAA)On January 1, 2017, Epitome Company acquired the followingproperty, plant and equipment:CostUseful lifeLandBuildingMachineryEquipment5,000,00025,000,00010,000,0003,000,0002510At the beginning of 2020, a revaluation of property, plant andequipment was made by professionally qualified valuers.While no change in the useful life of the assets was indicated.it was ascertained that replacement cost of the assets hadincreased by the following percentage:100%LandBuildingMachineryEquipment80%50%40%It was authorized that such revaluation be recorded in theaccounts and that depreciation be recorded on the basis ofrevalued amount.Required:a. Prepare journal entry to record the revaluation onJanuary 1, 2020.b. Prepare journal entry to record the depreciation for thecurrent year.c. Prepare journal entry to record the piecemeal realizationof the revaluation surplus.d. Present the assets in the statement of financial positionon December 31, 2020.852

Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…

Answered: er the required part: the letters a,b,c…

Business

Accounting

er the required part: the letters a,b,c and d. Please answer it with complete solutions with explanation. Tha

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

On January 1, 2017, Epitome Company acquired the following Problem 29-7 (1AA) property, plant and equipment: Cost Useful life 5,000,000 25,000,000 10,000,000 3,000,000 Land Building Machinery Equipment 25 10 At the beginning of 2020, a revaluation of property, plant and equipment was made by professionally qualified valuers While no change in the useful life of the assets was indicated it was ascertained that replacement cost of the assets had increased by the following percentage: 100% 80% 50% 40% Land Building Machinery Equipment It was authorized that such revaluation be rccorded in the accounts and that depreciation be recorded on the basis of revalued amount. Required: a. Prepare journal entry to record the revaluation on January 1, 2020. b. Prepare journal entry to record the depreciation for the current year. c. Prepare journal entry to record the piecemeal realization of the revaluation surplus. d. Present the asseta in the atatement of financial position on Deceinber 31, 2020
On January 1, 2016, Greenhills Company acquired property, plant and equipment for each as follows:Cost Life in yearsLand 5,000,000Building 25,000,000 2513Machinery 10,000,000 5Equipment 3,000,000 10At the beginning of 2019, a revaluation of property items was made by professionally qualified valuers.While no change in the life of the assets was indicated, it was ascertained that replacement cost of theassets acquired in 2016 had increased by the following percentage:Land 100%Building 80%Machinery 50%Equipment 40%It was authorized that such revaluation be recorded in the accounts and that depreciation be recorded onthe basis of revalued amount.Required:a. Prepare journal entry to record the revaluation on January 1, 2019.b. Prepare the journal entry to record the depreciation for 2019.c. Prepare the journal entry to record the piecemeal realization of the revaluation surplus.d. Present the assets in the statement of financial position on December 31, 2019.
1 Required information [The following information applies to the questions displayed below) Solich Sandwich Shop had the following long-term asset balances as of January 1, 2024: Accumulated Depreciation Land Building Equipment Patent View transaction list Ma • Solich purchased all the assets at the beginning of 2022. • The building is depreciated over a 10-year service life using the double-declining-balance method and estimating no. residual value. . The equipment is depreciated over a nine-year service life using the straight-line method with an estimated residual value of $10,000 The patent is estimated to have a five-year useful life with no residual value and is amortized using the straight-line method. Depreciation and amortization have been recorded for 2022 and 2023 (first two years). 2 2. For the year ended December 31, 2024, record amortization expense for the patent. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account…
On January 1, 2017, Epitome Company acquired the following d. Present the assets in the statement of financial position c. Prepare journal entry to record the piecemeal realization property, plant and equipment: Cost Useful life Land Building Machinery Equipment 5,000,000 25,000,000 10,000,000 3,000,000 25 10 At the beginning of 2020, a revaluation of property, plant and equipment was made by professionally qualified valuers. While no change in the useful life of the assets was indicated it was ascertained that replacement cost of the assets had increased by the following percentage: 100% 80% Land Building Machinery Equipment 50% 40% It was authorized that such revaluation be recorded in the accounts and that depreciation be recorded on the basis of revalued amount. Required: a. Prepare journal entry to record the revaluation on January 1, 2020. b. Prepare journal entry to record the depreciation for the current year. of the revaluation surplus. on December 31, 2020.
Required information [The following information applies to the questions displayed below.] Hero Sandwich Shop had the following long-term asset balances as of January 1, 2024: Land Building Equipment Patent Cost $86,000 451,000 227,900 205,000 Accumulated Depreciation Book Value $86,000 288,640 179,700 123,000 • Hero purchased all the assets at the beginning of 2022. • The building is depreciated over a 10-year service life using the double-declining-balance method and estimating no residual Land Building Equipment Patent 0 value. • The equipment is depreciated over a 9-year service life using the straight-line method with an estimated residual value of $11,000. HERO SANDWICH SHOP December 31, 2024 $(162,360) (48,200) (82,000) • The patent is estimated to have a five-year useful life with no residual value and is amortized using the straight-line method. • Depreciation and amortization have been recorded for 2022 and 2023 (first two years). 3. Calculate the book value for each of the…
Victor Mineli, the new controller of Carla Vista Co., has reviewed the expected useful lives and salvage values of selected depreciable asset categories at the beginning of 2021. Here are his findings: Category of Asset Date Historical Accum. Useful Life (Years) Original Proposed Original Proposed Salvage Value Acquired Cost Deprec. $829,000 $369,000 Building 1/1/2003 43 $50,000 $40,000 Machinery 1/1/2011 245,000 92,000 25 20 15,000 9,000 All assets were placed into service on their acquisition dates and are depreciated by the straight-line method. Carla Vista Co. uses a calendar year in preparing annual financial statements. Note that "Proposed" useful life is a revised estimate of total life, not remaining life. Enter all answers in whole dollar amounts without a $. If rounding is necessary, round to the nearest whole dollar (e.g., XXX). a. Using the original values, how much annual depreciation expense did Carla Vista recognize for the Building in 2020? $ b. Assume that management…
You have been assigned to prepare the schedule of property, plant, and equipment for ABC Corp. on Dec. 31, 2020. In the course of your work, you have assembled the following information: Depreciable Asset AcquisitionDate Cost Residual Value Useful Life (years) Depreciation Method Bldg. A Oct. 1, 2015 4,000,000 - 25 Straight line Bldg. B April 1, 2016 6,000,000 300,000 30 straight line Machinery A Oct. 1, 2015 1,000,000 100,000 10 150% declining balance Machinery B Jan. 1, 2016 900,000 80,000 5 Double declining balance Equipment A Jan. 1, 2016 400,000 40,000 7.5 SYD Equipment B April 1, 2017 190,000 25,000 5 SYD Additional Information:1. Machinery B is retired from use on October 31, 2020 and sold for P90,000. A replacement machinery was purchased on Nov. 1, 2020 for P980,000. It will be depreciated based on a 5-year estimated useful life and P50,000 estimated residual value using the double declining balance method.2. On Dec. 31, 2019, it is determined that the…
You have been assigned to prepare the schedule of property, plant, and equipment for ABC Corp. on Dec. 31, 2020. In the course of your work, you have assembled the following information: Depreciable Asset AcquisitionDate Cost Residual Value Useful Life (years) Depreciation Method Bldg. A Oct. 1, 2015 4,000,000 - 25 Straight line Bldg. B April 1, 2016 6,000,000 300,000 30 straight line Machinery A Oct. 1, 2015 1,000,000 100,000 10 150% declining balance Machinery B Jan. 1, 2016 900,000 80,000 5 Double declining balance Equipment A Jan. 1, 2016 400,000 40,000 7.5 SYD Equipment B April 1, 2017 190,000 25,000 5 SYD Additional Information:1. Machinery B is retired from use on October 31, 2020 and sold for P90,000. A replacement machinery was purchased on Nov. 1, 2020 for P980,000. It will be depreciated based on a 5-year estimated useful life and P50,000 estimated residual value using the double declining balance method.2. On Dec. 31, 2019, it is determined that the…
On January 1, 2016, Greenhills Company acquired property, plant and equipment for each as follows: Cost Life in years Land 5,000,000 25,000,000 Building 25 Machinery Equipment 10,000,000 3,000,000 10 At the beginning of 2019, a revaluation of property items was made by professionally qualified valuers. While no change in the life of the assets was indicated, it was ascertained that replacement cost of the assets acquired in 2016 had increased by the following percentage: Land 100% 80% Building Machinery Equipment 50% 40% It was authorized that such revaluation be recorded in the accounts and that depreciation be recorded on the basis of revalued amount. Required: a. Prepare journal entry to record the revaluation on January 1, 2019. b. Prepare the journal entry to record the depreciation for 2019. c. Prepare the journal entry to record the piecemeal realization of the revaluation surplus. d. Present the assets in the statement of financial position on December 31, 2019.
Problem 5:On January 1, 2016, Greenhills Company acquired property, plant and equipment for each as follows:Cost Life in yearsLand 5,000,000Building 25,000,000 2513Machinery 10,000,000 5Equipment 3,000,000 10At the beginning of 2019, a revaluation of property items was made by professionally qualified valuers.While no change in the life of the assets was indicated, it was ascertained that replacement cost of theassets acquired in 2016 had increased by the following percentage:Land 100%Building 80%Machinery 50%Equipment 40%It was authorized that such revaluation be recorded in the accounts and that depreciation be recorded onthe basis of revalued amount.Required:a. Prepare journal entry to record the revaluation on January 1, 2019.b. Prepare the journal entry to record the depreciation for 2019.c. Prepare the journal entry to record the piecemeal realization of the revaluation surplus.d. Present the assets in the statement of financial position on December 31, 2019.
Required information [The following information applies to the questions displayed below.] Wardell Company purchased a mainframe on January 1, 2019, at a cost of $43,000. The computer was depreciated using the straight-line method over an estimated five-year life with an estimated residual value of $10,000. On January 1, 2021, the estimate of useful life was changed to a total of 10 years, and the estimate of residual value was changed to $1,600. Required: 1. Prepare the year-end journal entry for depreciation in 2021. No depreciation was recorded during the year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your final answer to nearest whole dollar.) View transaction list Journal entry worksheet 1 Record depreciation expense for 2021. Note: Enter debits before credits. Event 1 General Journal Depreciation expense Accumulated depreciation-computer Record entry Clear entry Debit Credit View general journal
On 1 July 2022, Resonante Ltd acquired two assets within the same class of plant and equipment. Information on these assets is as follows. Cost Expected useful life Machine A $200 000 5 years Machine B 120 000 3 years The machines are expected to generate benefits evenly over their useful lives. The class of plant and equipment is measured using fair value. At 30 June 2023, information about the assets is as follows. Fair value Expected useful life Machine A $168 000 4 years Machine B 76 000 2 years On 1 January 2024, Machine B was sold for $58 000 cash. On the same day, Resonante Ltd acquired Machine C for $160 000 cash. Machine C has an expected useful life of 4 years. Resonante Ltd also made a bonus issue of 20 000 shares at $1 per share, using $16 000 from the general reserve and $4000 from the asset revaluation surplus created as a result of measuring Machine A at fair value. At 30 June 2024, information on the machines is as follows. Fair value Expected useful life Machine A $122…