please choose from the following accounts:Accounts PayableAccumulated Depreciation - BuildingsAccumulated Depreciation - EquipmentAccumulated Depreciation - Leasehold ImprovementsAccumulated Depreciation - MachineryAccumulated Depreciation - Vehicle OverhaulAccumulated Depreciation - VehiclesAdvertising ExpenseAsset Retirement ObligationBuildingsCashCommon SharesContributed Surplus - Donated CapitalCost of Goods SoldDeferred Revenue - Government GrantsDepreciation ExpenseDonation RevenueEquipmentFinance ExpenseGain on Disposal of BuildingsGain on Disposal of EquipmentGain on Disposal of MachineryGain on Disposal of VehiclesGain on Vehicle OverhaulGain or Loss in Value of Investment PropertyGST ReceivableInterest ExpenseInterest PayableInventoryInvestment PropertyLandLand ImprovementsLegal ExpenseLoss on Disposal of BuildingsLoss on Disposal of EquipmentLoss on Disposal of MachineryLoss on Disposal of VehiclesLoss on Vehicle OverhaulMachineryMineral ResourcesMortgage PayableNo EntryNotes PayableOffice ExpensePrepaid ExpensesPrepaid InsurancePurchase DiscountsRepairs and Maintenance ExpenseRevaluation Gain or LossRevaluation Surplus (AOCI)Revaluation Surplus (OCI)Revenue - Government GrantsSalaries and Wages ExpenseSales RevenueService RevenueSuppliesTenant Deposits LiabilityVehicle OverhaulVehicles Pina Manufacturers Inc., a publicly listed company, has two machines that are accounted for under the revaluation model. Technologyin Pina's industry is fast-changing, causing the fair value of each machine to change significantly about every two years. The followinginformation is available:Acquisition dateOriginal costOriginal estimate of useful lifeOriginal estimate of residual valuePattern of depreciationFair value at Dec. 31, 2021Balance in Machinery account after proportionatemethod revaluation on Dec. 31, 2021Balance in Accumulated Depreciation account afterproportionate method revaluation on Dec. 31, 2021Cumulative balance in (Revaluation Gain or Loss/Revaluation Surplus (AOCI) at Jan. 1, 2023Fair value at Dec. 31, 2023(a)No. Account Titles and ExplanationMachine #11.2.3.1.Your answer is correct.2.3.Depreciation ExpenseAccumulated Depreciation - Machinery(To record depreciation expense)Accumulated Depreciation - MachineryMachinery(To eliminate accumulated depreciation)MachineryBoth machines were last revalued on December 31, 2021. Pina has a December 31 year end.Revaluation Gain or LossRevaluation Surplus (OCI)(To adjust the Machinery account to fair value)Machine #2Prepare the journal entries required for 2023, using the asset adjustment method. (Credit account titles are automatically indentedwhen the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for theamounts. List all debit entries before credit entries. Round answers to O decimal places, e.g. 5,275.)Depreciation ExpenseAccumulated Depreciation - Machinery(To record depreciation expense)Accumulated Depreciation - MachineryMachinery(To eliminate accumulated depreciation)Revaluation Surplus (OCI)Revaluation Gain or LossMachine #1MachineryJan. 2, 2020(To adjust the Machinery account to fair value)$484,0008 years-0-Straight-line342,000456,000114,000(21,000)252,500Machine #2June 30, 2019$540,00012 years-0-Straight-line441,750558,000116,25014,250327,500Debit57000114000ill245004650093000142507000Credit57000114000791210003500465009300021250 Prepare the journal entries required for 2023, using the proportionate method. (Credit account titles are automatically indentedwhen the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for theamounts. List all debit entries before credit entries. Do not round intermediate calculations. Round answers to O decimal places, e.g. 5,275.)No. Account Titles and Explanation1.2.1.2.Machine #1(To record depreciation expense)(To adjust the Machinery account to fair value)Machine #2(To record depreciation expense)(To adjust the Machinery account to fair value)DebitCredit07010 0101

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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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Question

please choose from the following accounts:

Accounts Payable

Accumulated Depreciation - Buildings

Accumulated Depreciation - Equipment

Accumulated Depreciation - Leasehold Improvements

Accumulated Depreciation - Machinery

Accumulated Depreciation - Vehicle Overhaul

Accumulated Depreciation - Vehicles

Advertising Expense

Asset Retirement Obligation

Buildings

Cash

Common Shares

Contributed Surplus - Donated Capital

Cost of Goods Sold

Deferred Revenue - Government Grants

Depreciation Expense

Donation Revenue

Equipment

Finance Expense

Gain on Disposal of Buildings

Gain on Disposal of Equipment

Gain on Disposal of Machinery

Gain on Disposal of Vehicles

Gain on Vehicle Overhaul

Gain or Loss in Value of Investment Property

GST Receivable

Interest Expense

Interest Payable

Inventory

Investment Property

Land

Land Improvements

Legal Expense

Loss on Disposal of Buildings

Loss on Disposal of Equipment

Loss on Disposal of Machinery

Loss on Disposal of Vehicles

Loss on Vehicle Overhaul

Machinery

Mineral Resources

Mortgage Payable

No Entry

Notes Payable

Office Expense

Prepaid Expenses

Prepaid Insurance

Purchase Discounts

Repairs and Maintenance Expense

Revaluation Gain or Loss

Revaluation Surplus (AOCI)

Revaluation Surplus (OCI)

Revenue - Government Grants

Salaries and Wages Expense

Sales Revenue

Service Revenue

Supplies

Tenant Deposits Liability

Vehicle Overhaul

Vehicles

Pina Manufacturers Inc., a publicly listed company, has two machines that are accounted for under the revaluation model. Technology
in Pina's industry is fast-changing, causing the fair value of each machine to change significantly about every two years. The following
information is available:
Acquisition date
Original cost
Original estimate of useful life
Original estimate of residual value
Pattern of depreciation
Fair value at Dec. 31, 2021
Balance in Machinery account after proportionate
method revaluation on Dec. 31, 2021
Balance in Accumulated Depreciation account after
proportionate method revaluation on Dec. 31, 2021
Cumulative balance in (Revaluation Gain or Loss/
Revaluation Surplus (AOCI) at Jan. 1, 2023
Fair value at Dec. 31, 2023
(a)
No. Account Titles and Explanation
Machine #1
1.
2.
3.
1.
Your answer is correct.
2.
3.
Depreciation Expense
Accumulated Depreciation - Machinery
(To record depreciation expense)
Accumulated Depreciation - Machinery
Machinery
(To eliminate accumulated depreciation)
Machinery
Both machines were last revalued on December 31, 2021. Pina has a December 31 year end.
Revaluation Gain or Loss
Revaluation Surplus (OCI)
(To adjust the Machinery account to fair value)
Machine #2
Prepare the journal entries required for 2023, using the asset adjustment method. (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. Round answers to O decimal places, e.g. 5,275.)
Depreciation Expense
Accumulated Depreciation - Machinery
(To record depreciation expense)
Accumulated Depreciation - Machinery
Machinery
(To eliminate accumulated depreciation)
Revaluation Surplus (OCI)
Revaluation Gain or Loss
Machine #1
Machinery
Jan. 2, 2020
(To adjust the Machinery account to fair value)
$484,000
8 years
-0-
Straight-line
342,000
456,000
114,000
(21,000)
252,500
Machine #2
June 30, 2019
$540,000
12 years
-0-
Straight-line
441,750
558,000
116,250
14,250
327,500
Debit
57000
114000
ill
24500
46500
93000
14250
7000
Credit
57000
114000
791
21000
3500
46500
93000
21250

Prepare the journal entries required for 2023, using the proportionate method. (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. Do not round intermediate calculations. Round answers to O decimal places, e.g. 5,275.)
No. Account Titles and Explanation
1.
2.
1.
2.
Machine #1
(To record depreciation expense)
(To adjust the Machinery account to fair value)
Machine #2
(To record depreciation expense)
(To adjust the Machinery account to fair value)
Debit
Credit
07010 0101

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please choose from the following accounts: Accounts Payable Accumulated Depreciation - Buildings Accumulated Depreciation - Equipment Accumulated Depreciation - Leasehold Improvements Accumulated Depreciation - Machinery Accumulated