Jahmeelah Ltd is a publicly owned company founded by Jam Spencer. Jahmeelah owns and operates retail stores in Ontario, Nova Scotia, and Quebec. The company has decided to dispose of a low performing store in Quebec City. The board authorized a sale of the assets, and has been in discussion with a potential buyer. The Quebec City store qualifies as a disposal group, to be classified as held for sale. The net assets of the Quebec location can be summarized as follows: Cash Accounts receivable Inventory Land Buildings Equipment and furnishings Accounts payable Carrying value 30 November 20X4 recoverable amount 15, 000 15,000 26,000 18,000 33, 000 25,000 JI 485, 000 520, 000 306, 000 290,000 42,000 24,000 (46, 000) (46, 000) 861,000 846, 000 Cost 665,000 125,000 (46, 000) Estimate Required: Prepare the journal entry to record the disposal group as held for sale. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Jahmeelah Ltd is a publicly owned company founded by Jam Spencer. Jahmeelah owns and operates retail stores in Ontario, Nova
Scotia, and Quebec. The company has decided to dispose of a low performing store in Quebec City. The board authorized a sale of
the assets, and has been in discussion with a potential buyer. The Quebec City store qualifies as a disposal group, to be classified as
held for sale. The net assets of the Quebec location can be summarized as follows:
Cash
Accounts receivable
Inventory
Land
Buildings
Equipment and furnishings
Accounts payable
Cost
665,000
125, 000
(46, 000)
Carrying value 30
November 20X4 recoverable amount
15,000
26, 000
33, 000
485, 000
306, 000
42, 000
(46, 000)
861, 000
Estimate
15, 000
18,000
25,000
520, 000
290,000
24, 000
(46, 000)
846, 000
Required:
Prepare the journal entry to record the disposal group as held for sale. (If no entry is required for a transaction/event, select "No
journal entry required" in the first account field.)
Transcribed Image Text:Jahmeelah Ltd is a publicly owned company founded by Jam Spencer. Jahmeelah owns and operates retail stores in Ontario, Nova Scotia, and Quebec. The company has decided to dispose of a low performing store in Quebec City. The board authorized a sale of the assets, and has been in discussion with a potential buyer. The Quebec City store qualifies as a disposal group, to be classified as held for sale. The net assets of the Quebec location can be summarized as follows: Cash Accounts receivable Inventory Land Buildings Equipment and furnishings Accounts payable Cost 665,000 125, 000 (46, 000) Carrying value 30 November 20X4 recoverable amount 15,000 26, 000 33, 000 485, 000 306, 000 42, 000 (46, 000) 861, 000 Estimate 15, 000 18,000 25,000 520, 000 290,000 24, 000 (46, 000) 846, 000 Required: Prepare the journal entry to record the disposal group as held for sale. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
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