On 1 January 2005, Charles Company purchase a freehold land and building for GH ¢800,000. [Land GH ¢ 240,000, Buildings GH ¢ 560,000]. The building was expected to have economic useful life of 40 years and depreciation of the land is ignored. On 1 October 2008, the land was revalued at GH ¢ 300,000 and the building GH ¢ 580,000. Required Show the relevant entries in the Income Statement for the year ended 31 December 2008 and Statement of Financial Position as at 31 December 2008 together with relevant extract from the PPE Schedule.
On 1 January 2005, Charles Company purchase a freehold land and building for GH ¢800,000. [Land GH ¢ 240,000, Buildings GH ¢ 560,000]. The building was expected to have economic useful life of 40 years and depreciation of the land is ignored. On 1 October 2008, the land was revalued at GH ¢ 300,000 and the building GH ¢ 580,000. Required Show the relevant entries in the Income Statement for the year ended 31 December 2008 and Statement of Financial Position as at 31 December 2008 together with relevant extract from the PPE Schedule.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On 1 January 2005, Charles Company purchase a freehold land and building for GH ¢800,000. [Land GH ¢ 240,000, Buildings GH ¢ 560,000]. The building was expected to have economic useful life of 40 years and
the land was revalued at GH ¢ 300,000 and the building GH ¢ 580,000.
Required
Show the relevant entries in the Income Statement for the year ended 31 December 2008
and
from the PPE Schedule.
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