Dvalin Corp had the following transactions related to some of its properties. On January 1, 2020, Dvalin acquired equipment for cash at a cost of P6,000,000. The equipment has a life of 6 years with no residual value and will be depreciated using the straight line method. On March 1, 2020 the equipment was reclassified to held for sale under IFRS 5 provisions. On the same date the equipment had a fair value less cost to sell of P5,500,000. On December 31, 2020 been sold for P3,200,000. Requirement: Provide the journal entries for the foregoing transactions.

journal entries refer to the concept of documenting all the transactions of a company in its books.

Answered: esidual value and will be depreciated…

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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Dvalin Corp had the following transactions related to some of its properties.

On January 1, 2020, Dvalin acquired equipment for cash at a cost of P6,000,000. The equipment has a life of 6 years with no residual value and will be depreciated using the straight line method.
On March 1, 2020 the equipment was reclassified to held for sale under IFRS 5 provisions. On the same date the equipment had a fair value less cost to sell of P5,500,000.
On December 31, 2020 been sold for P3,200,000.

Requirement: Provide the journal entries for the foregoing transactions.

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