On 31/03/2022, Sea Ltd (the parent) sold equipment with a carrying amount of $290,000 to Bill Ltd for $275,000. The equipment initally had a useful life of ten years and was purchased for $600,000. The remaining useful life of the equipment is 7.25 years depreciated on a straight line basis. 1) Prepare the consolidation journal entries for this item at its transaction date.

Q: On Jan. 1, 2022, ABC Co. sold a machinery to XYZ Co. for P1,900,000. Because of the entity's…

A: The lease liability is a sum of all discounted future lease payments. In this case, only lease…

Q: Dawn Company purchased a machine on January 1, 2018 for P3,000,000. At the date of acquisition, the…

A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…

Q: ABC Ltd acquires some machinery at a cost of $500 000 on 1 July 2021. On 30 June 2022, the…

A: IN LINE WITH THE CONCEPT OF CONSERVATISM , REVALUATION DECREMENT ARE RECOGNIZED AS AN EXPENSE IN THE…

Q: The net book value of Falcon Inc.'s property, plant, and equipment (PP&E) was $734.550 on January 1,…

A: The gain or loss on sale of fixed asset is calculated as difference between the book value and sale…

Q: On January 1, 2018, an entity purchased a machine for P7,200,000 and depreciated it by the straight…

A: Since there are multiple questions, we will solve first for you. To get the remaining questions…

Q: On July 15, 2021, Cottonwood Industries sold a patent and equipment to Roquemore Corporation for…

A: 1. Date Account Titles and Explanation Debit Credit July 15, 2021 Cash $750,000…

Q: On January 1, 2019 Pink Corp. sold a machine for $7,400 to slink Corp., its wholly-owned subsidiary.…

A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…

Q: ABC Ltd acquires some machinery at a cost of $500 000 on 1 July 2021. On 30 June 2022, the…

A: Machinery  Cost of machinery on 1 July 2021 $5,00,000 Less: accumulated depreciation on 30…

Q: ear in the consolidated adjusting journal entries for

A: Given as, Sales price = $820,000 Salvage value of equipment when sold = $520,000

Q: Baker Ltd sold an item of machinery to its subsidiary Lanny Ltd for $8000. The original cost of the…

A: Loss on sale = Book value of machiner  - sales value = $10000 - $8000 = $2000

Q: As January 3, 2020, Princess Corp. sold a machinery with a book va 20-year remaining useful life to…

A: This comes under Residual Issues in Consolidating Financial Statement: Treatment of Unrealised…

Q: On July 15, 2021, Cottonwood Industries sold a patent and equipment to Roquemore Corporation for…

A: INTRODUCTION: A patent is a license or legal instrument that grants the exclusive/sole right to…

Q: On January 1, 2018, an entity purchased a machine for P7,200,000 and depreciated it by the…

A: COST OF PURCHASE OF MACHINE = P7200000 USEFUL LIFE OF ASSET = 8 YEARS METHOD OF DEPRECIATION USED =…

Q: Sunland Company owns equipment that cost $114,000 when purchased on January 2, 2024. It has been…

A: Depreciation expense :— It is the allocation of depreciable cost of asset over the estimated useful…

Q: On January 1, 2020, Pink Corp. 'sold' a machine for $6000 to Slink Corp., its wholly-owned…

A: Depreciation expense: Depreciation expense refers to the reduction in the total value of the asset…

Q: On July 15, 2024, Cottonwood Industries sold a patent and equipment to Roquemore Corporation for…

A: The journal entries are prepared to keep the record of day to day transactions of the business on…

Q: On January 1, 2022, Kenya Company, an 80% owned subsidiary of Oliver, Inc., transferred equipment…

A: The objective of this question is to determine how the transfer of equipment from Kenya Company to…

Q: On 1 January 20X8 Hendrix Co revalued its property to $200,000. Up to the date of the revaluation,…

A: We have the following information: Cost of the property: $160,000 Accumulated Depreciation: $40,000…

Q: ABC Ltd acquires some machinery at a cost of $250 000 on 1 July 2021. On 30 June 2022, the…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: Oriole Company owns equipment that cost $120,000 when purchased on January 2, 2024. It has been…

A: The journal entries are prepared to record the transactions on a regular basis. The gain or loss on…

Q: On January 1, 2020, Pink Corp. 'sold' a machine for $8000 to Slink Corp., its wholly-owned…

A: When preparing consolidated financial statements, the objective is to restate the accounts as if…

Q: France  company disclosed that the depreciation policy of on machinery is as follows: A full year…

A: Depreciation expense :— It is the allocation of depreciable cost of asset over the life of assets.…

Q: an entity acquired furniture and fittings on 1 July 2021 for $42 000. The estimated useful life of…

A: journal entry for sale of furniture: date particular L.f debit credit 1 january, 2027 bank…

Q: Required: a. Prepare the December 31, 2020 consolidation entry in general journal format. p. Prepare…

A: Please check step 2 for the solution

Q: depreciation is taken in the year of acquisition. • No depreciation is taken in the year of…

A: Depreciation under straight line method is:   = (Original cost  - Residual value) ÷ Useful life

Q: On July 15, 2018, Cottonwood Industries sold a patent and equipment to Roquemore Corporation for…

A: Gain (Loss) on sale of patent =  Sale value - Book value = $750,000 - $120,000 = $630,000 Gain…

Q: Netsol Communication purchased equipment on January 1, 2018, for $27,500. Suppose Netsol…

A: Formula: Straight line method = ( Asset cost - Salvage value ) / Useful life

Q: Springer Company had three intangible assets at the end of 2023 (end of the accounting year): a. A…

A: Amortization expense is the amount of the write-off of intangible assets. It is determined by…

Q: Sweet Company purchased equipment on January 1, 2018, for S28,000. Suppose Sweet Company sold the…

A: recording of journal entry for depreciation are as follows.

Q: On 1/1/19, O. Corp acquired equipment at a cost of $867k. O. Corp adopted the sum-of-the-yrs-digits…

A: Depreciation is an expense charged on the value of fixed assets like building, machinery, etc. It…

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.