Gems Inc. uses revaluation accounting for its Equipment. The following information has been provided. July 7, 2023: Purchased Equipment for $250 000 on account. Estimated Useful Life: 10 years Residual Value: $0 Depreciation Method: Straight-line (nearest full month) Frequency of Revaluation: Annually Valuation Data July 7, 2023: $250 000 December 31, 2023: $234 000 December 31, 2024: $220 000 Prepare all necessary journal entries at December 31, 2023 and 2024. December 31, 2023 Dr. Answer 1 Question 3 $Answer 2 Question 3 Cr. Answer 3 Question 3 $Answer 4 Question 3 To record depreciation expense Dr. Answer 5 Question 3 $Answer 6 Question 3 Cr. Answer 7 Question 3 $Answer 8 Question 3 To eliminate accumulated depreciation Dr. Answer 9 Question 3 $Answer 10 Question 3 Cr. Answer 11 Question 3 $Answer 12 Question 3 To record change in reported value of asset December 31, 2024 Dr. Answer 13 Question 3 $Answer 14 Question 3 Cr. Answer 15 Question 3 $Answer 16 Question 3 To record depreciation expense Dr. Answer 17 Question 3 $Answer 18 Question 3 Cr. Answer 19 Question 3 $Answer 20 Question 3 To eliminate accumulated depreciation ----------- Remember: Items in this compound journal entry MUST be listed in their descending order of value for the purpose of being graded correctly by Moodle. Dr. Answer 21 Question 3 $Answer 22 Question 3 Answer 23 Question 3 Answer 24 Question 3 $Answer 25 Question 3 $Answer 26 Question 3 Cr. Answer 27 Question 3 $Answer 28 Question 3 To record change in reported value of asset
Gems Inc. uses revaluation accounting for its Equipment. The following information has been provided.
July 7, 2023: Purchased Equipment for $250 000 on account.
- Estimated Useful Life: 10 years
- Residual Value: $0
- Depreciation Method: Straight-line (nearest full month)
- Frequency of Revaluation: Annually
Valuation Data
- July 7, 2023: $250 000
- December 31, 2023: $234 000
- December 31, 2024: $220 000
Prepare all necessary journal entries at December 31, 2023 and 2024.
December 31, 2023
|
Dr. Answer 1 Question 3 |
$Answer 2 Question 3 |
|
|
Cr. Answer 3 Question 3 |
|
$Answer 4 Question 3 |
|
To record depreciation expense |
|
Dr. Answer 5 Question 3 |
$Answer 6 Question 3 |
|
|
Cr. Answer 7 Question 3 |
|
$Answer 8 Question 3 |
|
To eliminate accumulated depreciation |
|
Dr. Answer 9 Question 3 |
$Answer 10 Question 3 |
|
|
Cr. Answer 11 Question 3 |
|
$Answer 12 Question 3 |
|
To record change in reported value of asset |
December 31, 2024
|
Dr. Answer 13 Question 3 |
$Answer 14 Question 3 |
|
|
Cr. Answer 15 Question 3 |
|
$Answer 16 Question 3 |
|
To record depreciation expense |
|
Dr. Answer 17 Question 3 |
$Answer 18 Question 3 |
|
|
Cr. Answer 19 Question 3 |
|
$Answer 20 Question 3 |
|
To eliminate accumulated depreciation |
-----------
Remember: Items in this compound journal entry MUST be listed in their descending order of value for the purpose of being graded
correctly by Moodle.
|
Dr. Answer 21 Question 3 |
$Answer 22 Question 3 |
|
|
Answer 23 Question 3 Answer 24 Question 3 |
$Answer 25 Question 3 |
$Answer 26 Question 3 |
|
Cr. Answer 27 Question 3 |
|
$Answer 28 Question 3 |
|
To record change in reported value of asset
|
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