On October 1, 2020, Ocean Airways Ltd. purchased a new commercial aircraft for a total cost of $118.00 million. Included in the total cost are the aircraft's 2 engines, at a cost of $11.80 million each, and the aircraft's body, which costs $94.40 million. The estimated useful life of each of the aircraft's 2 engines is 10 years, with a residual value of $1.18 millio The estimated useful life of the aircraft's body is 10 years, with a residual value of $5.90 million. The entire aircraft's useful life is limited to the life of the aircraft's body. (a) Prepare the journal entries required on October 1, 2020, and December 31, 2020, if Ocean Airways prepares financial statements in accordance with IFRS and uses straight-line depreciation. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for th account titles and enter 0 for the amounts.) Account Titles and Explanation Date October 1, 2020 December 31, 2020 + ♦ + # Debit Credit
On October 1, 2020, Ocean Airways Ltd. purchased a new commercial aircraft for a total cost of $118.00 million. Included in the total cost are the aircraft's 2 engines, at a cost of $11.80 million each, and the aircraft's body, which costs $94.40 million. The estimated useful life of each of the aircraft's 2 engines is 10 years, with a residual value of $1.18 millio The estimated useful life of the aircraft's body is 10 years, with a residual value of $5.90 million. The entire aircraft's useful life is limited to the life of the aircraft's body. (a) Prepare the journal entries required on October 1, 2020, and December 31, 2020, if Ocean Airways prepares financial statements in accordance with IFRS and uses straight-line depreciation. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for th account titles and enter 0 for the amounts.) Account Titles and Explanation Date October 1, 2020 December 31, 2020 + ♦ + # Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On October 1, 2020, Ocean Airways Ltd. purchased a new commercial aircraft for a total cost of $118.00 million. Included in the total cost are the aircraft's 2 engines, at a cost of
$11.80 million each, and the aircraft's body, which costs $94.40 million. The estimated useful life of each of the aircraft's 2 engines is 10 years, with a residual value of $1.18 million.
The estimated useful life of the aircraft's body is 10 years, with a residual value of $5.90 million. The entire aircraft's useful life is limited to the life of the aircraft's body.
(a)
Prepare the journal entries required on October 1, 2020, and December 31, 2020, if Ocean Airways prepares financial statements in accordance with IFRS and uses straight-line
depreciation. (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 0 for the amounts.)
Account Titles and Explanation
Date
October 1, 2020
December 31, 2020
Debit
Credit
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