Life of Pi is an amazing baked goods shop located in downtown Chicago. They are world famous for their pies! They have a machine with an original cost of $1,440,000. The machine's carrying value at the beginning of this year (net of accumulated depreciation) was $1,080,000. Life of Pi recorded $120,000 for depreciation for this year. The equipment's fair value at the end of the year was $1,056,000. This is the first year that the company has revalued this equipment. Record the journal entry for the revaluation adjustment assuming that Life of Pi uses the elimination method. Do not use dollar signs in your answer. Round your final answer to the nearest dollar. Do not round intermediary answers. Enter a debit as a positive number. Enter a credit as a negative number. Enter 0 for accounts that do not apply. Account Amount Accumulated Depreciation Gain on revaluation (income statement) Loss on revaluation (income statement) Machinery OCI - revaluation loss OCI- revaluation surplus 2. Record the journal entry for the revaluation adjustment assuming that Life of Pi uses the PROPORTIONAL method. Do not use dollar signs in your answer. Round your final answer to the nearest dollar. Do not round intermediary answers. Enter a debit as a positive number. Enter a credit as a negative number. Enter 0 for accounts that do not apply. Account Amount Accumulated Depreciation Gain on revaluation (income statement) Loss on revaluation (income statement) Machinery OCI - revaluation loss OCI- revaluation surplus

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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Life of Pi is an amazing baked goods shop located in downtown Chicago. They are world famous for their pies! They have a machine with an original cost of $1,440,000. The machine's carrying value at the beginning of this year (net of accumulated depreciation) was $1,080,000. Life of Pi recorded $120,000 for depreciation for this year. The equipment's fair value at the end of the year was $1,056,000. This is the first year that the company has revalued this equipment.

Record the journal entry for the revaluation adjustment assuming that Life of Pi uses the elimination method. Do not use dollar signs in your answer. Round your final answer to the nearest dollar. Do not round intermediary answers.

Enter a debit as a positive number. Enter a credit as a negative number. Enter 0 for accounts that do not apply.

Account	Amount
Accumulated Depreciation
Gain on revaluation (income statement)
Loss on revaluation (income statement)
Machinery
OCI - revaluation loss
OCI- revaluation surplus

2. Record the journal entry for the revaluation adjustment assuming that Life of Pi uses the PROPORTIONAL method. Do not use dollar signs in your answer. Round your final answer to the nearest dollar. Do not round intermediary answers.

Enter a debit as a positive number. Enter a credit as a negative number. Enter 0 for accounts that do not apply.

Account	Amount
Accumulated Depreciation
Gain on revaluation (income statement)
Loss on revaluation (income statement)
Machinery
OCI - revaluation loss
OCI- revaluation surplus

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