On January 1, 2022, Waterway Corporation acquires a building at a cost of $450,000. The building is expected to have a 30-year life and no residual value. The asset is accounted for using the proportionate revaluation method and revaluation is carried out every two years. On December 31, 2023, the fair value of the building is appraised at $441,000 and on December 31, 2025 its fair value is $390,000. Prepare the appropriate journal entries for December 31, 2023 and December 31, 2025. Assume depreciation has been recorded. (Do not round intermediate calculations. Round final answers to O decimal places e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Date 31, 2023 .31, 2025 Account Titles and Explanation Buildings Accumulated Depreciation - Buildings Revaluation Surplus (OCI) Revaluation Surplus (OCI) Accumulated Depreciation - Buildings Buildings Debit 472500 31500 000 31500 Credit 441000
On January 1, 2022, Waterway Corporation acquires a building at a cost of $450,000. The building is expected to have a 30-year life and no residual value. The asset is accounted for using the proportionate revaluation method and revaluation is carried out every two years. On December 31, 2023, the fair value of the building is appraised at $441,000 and on December 31, 2025 its fair value is $390,000. Prepare the appropriate journal entries for December 31, 2023 and December 31, 2025. Assume depreciation has been recorded. (Do not round intermediate calculations. Round final answers to O decimal places e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Date 31, 2023 .31, 2025 Account Titles and Explanation Buildings Accumulated Depreciation - Buildings Revaluation Surplus (OCI) Revaluation Surplus (OCI) Accumulated Depreciation - Buildings Buildings Debit 472500 31500 000 31500 Credit 441000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![On January 1, 2022, Waterway Corporation acquires a building at a cost of $450,000. The building is expected to have a 30-year life
and no residual value. The asset is accounted for using the proportionate revaluation method and revaluation is carried out every two
years. On December 31, 2023, the fair value of the building is appraised at $441,000 and on December 31, 2025 its fair value is
$390,000.
Prepare the appropriate journal entries for December 31, 2023 and December 31, 2025. Assume depreciation has been recorded. (Do
not round intermediate calculations. Round final answers to O decimal places e.g. 5,275. Credit account titles are automatically indented when
the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all
debit entries before credit entries.)
Date
31, 2023
.31, 2025
Account Titles and Explanation
Buildings
Accumulated Depreciation - Buildings
Revaluation Surplus (OCI)
Revaluation Surplus (OCI)
Accumulated Depreciation - Buildings
Buildings
Debit
472500
31500
[[0]
10000
Credit
31500
441000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5ec586fb-947f-42bf-8462-e5aff0bd054c%2Fd83f7398-bbd8-48f7-8e80-99c81f2f5597%2F47bcep_processed.png&w=3840&q=75)
Transcribed Image Text:On January 1, 2022, Waterway Corporation acquires a building at a cost of $450,000. The building is expected to have a 30-year life
and no residual value. The asset is accounted for using the proportionate revaluation method and revaluation is carried out every two
years. On December 31, 2023, the fair value of the building is appraised at $441,000 and on December 31, 2025 its fair value is
$390,000.
Prepare the appropriate journal entries for December 31, 2023 and December 31, 2025. Assume depreciation has been recorded. (Do
not round intermediate calculations. Round final answers to O decimal places e.g. 5,275. Credit account titles are automatically indented when
the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all
debit entries before credit entries.)
Date
31, 2023
.31, 2025
Account Titles and Explanation
Buildings
Accumulated Depreciation - Buildings
Revaluation Surplus (OCI)
Revaluation Surplus (OCI)
Accumulated Depreciation - Buildings
Buildings
Debit
472500
31500
[[0]
10000
Credit
31500
441000
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