Lewis Ltd has a block of land with a carrying amount of $200,000, previously revalued upwards from $100,000. Required: Show the journal entries for each of these independent scenarios. The land is revalued downwards to $160,000 Revalued downwards from $200,000 to $80,000 The land is sold for $250,000

Lewis Ltd has a block of land with a carrying amount of $200,000, previously revalued upwards from $100,000. Required: Show the journal entries for each of these independent scenarios. The land is revalued downwards to $160,000 Revalued downwards from $200,000 to $80,000 The land is sold for $250,000

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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Question

Lewis Ltd has a block of land with a carrying amount of $200,000, previously revalued upwards from $100,000.

Required:

Show the journal entries for each of these independent scenarios.

The land is revalued downwards to $160,000

Revalued downwards from $200,000 to $80,000

The land is sold for $250,000

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

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