12BCDEGAABC Company acquires its only building on January 1, Year 1, at a cost of $4,000,000. The building has a 20-year life, zero residual value, and is depreciated on a straight-line basis. The company adopts the revaluation modelin accounting for buildings. On December 31, Year 2, the fair value of the building is $3,780,000. The company eliminates accumulated depreciation against the building account at the time of revaluation. The company'saccounting policy is to reverse a portion of the revaluation surplus account related to increased depreciation expense. On January 2, Year 4, the company sells the building for $3,500,000.Required: 1-Determine the amounts to be reflected in the balance sheet related to this building for Years 1-4 in the following table. (Use parentheses to indicate credit amounts.)Date4 January 1, Year 15 December 31, Year 16 December 31, Year 27 December 31, Year 28 Balance9 December 31, Year 310 Balance11 Sale, Jan 2, Year 412 Balance13CostAccumulateddepreciationCarrying AmountRevaluation SurplusIncomeRetained Earnings

Answered: Image /qna-images/answer/e7d3613d-45f1-4232-894b-72c0d24879a9.jpg

Answered: Required: 1-Determine the amounts to be…

Required: 1-Determine the amounts to be reflected in the balance sheet related to this building for Years 1-4 in the following table. (Use parentheses to indicate credit amounts.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Recognise the correct category in the Classified Balance Sheet for the given accounts: Patents…

A: Assets: Properties are things are owned by a business.

Q: The balance sheet shows the following accounts and amounts: Cash $26,000; Short-term Debt $42,000;…

A: BALANCE SHEETThe balance sheet is one of the important financial statements of the company. Balance…

Q: (c) Prepare the necessary journal entry to record the capitalization of interest and the…

A: pay for construction $200,000 was borrowed on March 1 on a 12%, three-year note payable. The only…

Q: The net income /loss= $7,425 1) prepared a classified statement of financial position. Assume that…

A: Statement of financial position refers to the summarization of the assets, liabilities and equity of…

Q: Balance Sheet - Standardized (Currency: Standardized) Field Name Current Assets Cash & Short-Term…

A: Meaning of terms:Cash & Short Term Investments- Cash include cash and cash equivalent. Cash and…

Q: Note 1: Buildings are stated at cost, except for one building that was recorded at appraised value.…

A: It is the detailed presentation of balance sheet in which the components of a balance sheet are…

Q: Perform the calculation for each ratio, and provide an explanation of the result. a. Return on…

A: Given: Particulars Amount Net income -$522,000 Accounts receivables $300,000 Current assets…

Q: The capital ledger accounts and post-closing entries are provided above: Where will the final…

A: Answer 1: The final capital balance of $163,600 will be reported on the Liability side of the…

Q: Presented below is a list of possible transactions. Analyze the effect of the 18 transactions on the…

A: The financial statements are the essential books of records prepared by the company. It includes an…

Q: The sum of the debit side of the debtors account was (15000) and the total of the credit side…

A: Workings:

Q: Financial information for three independent cases is given below.…

A: The accounting equation, often recognized as the balance sheet equation, serves as the foundation…

Q: account group in which physical assets acquired for use in business activities and with an estimated…

A: Option a is wrong because the assets in 22 Trade Receivables Account Group are current assets having…

Q: 1. 2. 3. 5. 5. 7. 3. 9 Common Stock. Discount on Bonds Payable. Treasury Stock (at cost). Notes…

A: The balance sheet is a statement that summarizes the entity's financial situation as of any given…

Q: or accounting what journals do you do if you have 2 revaluation increments in a row?

A: Revaluation seems to be a procedure in which the business recognizes a gain or loss based on the…

Q: Required: 1. Assign each payment and receipt to Land (unlimited life), Land Improvements (limited…

A: Land is not depreciated because land has unlimited life and depreciation is charged only to the…

Q: Calculate the debt to equity and debt to assets. round both answers to 2 decimal places.

A: DEBT TO EQUITY RATIO Debt to Equity Ratio is the Ratio Between Total Debt & Total Equity. Debt…

Q: A loan received from a bank would be recorded in the nominal ledger as: a) Dr Bank Cr…

A: Journal Entry - Journal Entry is a record of the transactions entered into by the company. It is…

Q: These items are taken from the financial statements of Crane Company at December 31, 2022. Buildings…

A: Before preparing to balance sheet, company should needs to first prepare the income statement, in…

Q: Based on the information below of FDNACCT Co., how much should be recorded as total assets in the…

A: Total assets include both Current assets and Non-current assets. Current assets: Current assets are…

Q: Débit Credit Cash $25,128 Accounts Receivable 100,513 Inventory 40,000 Prepaid Rent 14,135 Equipment…

A: Balance Sheet is a summary of the financial balances of an organization, whether it be a sole…

Q: Based on the information below of FDNACCT Co., how much should be recorded as total assets in the…

A: Long-term Payable, Notes Payable, Accounts Payable, Unearned Income, Accrued Expenses are considered…

Q: QUESTIONS 1. Determine the total asset of each bank in each year and provide this information in a…

A: Total Assets :— Total Assets include Current Assets or Non Current Assets. Where, Current Assets…

Q: how to open an account for utilities expense. use the 3-digit numbering system

A: The ledger account is prepared based on the recording made in the journal entries.

Q: The list of assets, equity and liability to be filled. Assets Amount (RO) Land and Building Plant…

A: The income earned by one shareholder on one share is known as earnings per share. The portion of…

Q: The amount of each asset in an opening entry is recorded in a journal in the…

A: The objective of the question is to understand where the amount of each asset in an opening entry is…

Q: Q4. Describe the nature of the assets that compose the following sections of a balance sheet:…

A: Balance Sheet is a financial statement showing financial position of a…

Q: There are four types of accrual / deferral accounts. Please provide a definition and example of each…

A: The accrual and deferral Accounts are created under accrual basis accounting.

Q: The following inrormation has been extracted from the draft financial information of Claudius Ltd.…

A: Cash Flow Statement - Under Cash Flow, there are three types of activities involved - Operating…

Q: Common categories of a classified balance sheet include Current Assets, Long-Term Investments, Plant…

A: Current assets are assets held for less than 12 months Current liabilities are obligations that…

Q: Use the information provided for Harding Company to answer the question that follow. Harding Company…

A: Quick ratio is calculated by dividing the quick assets by the total current liabilities. Quick ratio…

Q: Which of the following is the account group in which physical assets acquired for use in business…

A: The assets and liabilities on a particular date are shown in the balance sheet.

Q: Common categories of a classified balance sheet include Current Assets, Long-Term Investments, Plant…

A: The balance sheet represents the financial position of the business with assets, liabilities and…

Q: Compute each of the following: (Round your answers to 2 decimal places.) a. Current ratio b.…

A: Ratio analysis is the technique used to analyze the financial health of the company. Different…

Q: Dean Hardware, Inc. is comprised of five operating segments. Information about each of these…

A: An operating segment is considered to be a reportable segment if the reported assets of that…

Q: Describe the specific elements of the balance sheet (assets, liabilities, and owners’ equity), and…

A: Balance sheet refers to the financial statements of a company that incorporates assets,liabilities,…

Q: Use the following data to create a complete balance sheet. All accounts must be correctly labeled…

A: Balance Sheet: It is one of the financial statements that show the organization's current financial…

Q: -The following data as of June 1, 2020 were taken from the records of X: Cash 21,000 Accounts…

A: Partnership is one of the agreement or arrangement between two or more persons, in which they agree…

Q: Below are the titles of a number of debit and credit accounts as they might appear on the statement…

A: Current assets are those assets which are convertible in to cash within one year from balance sheet…

Q: Using the following information prepare a classified balance sheet. Make sure it is in the proper…

A: The financial statement includes income statement, statement of stockholder’s equity and balance…

Q: ased on these items, what is the total of the (a) liquid assets and (b) current liabilities?…

A: LIQUID ASSETS Liquid Assets Includes Cash & Cash Equivalent, Accounts Receivable, Short Term…

Q: Prepare the balance sheet and income statement by rearranging the above items. Note: Be sure to list…

A: Limitations and Adjustments for Balance Sheet and Income StatementWhile we attempted to construct a…

Concept explainers

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.

Question

1
2
B
C
D
E
G
A
ABC Company acquires its only building on January 1, Year 1, at a cost of $4,000,000. The building has a 20-year life, zero residual value, and is depreciated on a straight-line basis. The company adopts the revaluation model
in accounting for buildings. On December 31, Year 2, the fair value of the building is $3,780,000. The company eliminates accumulated depreciation against the building account at the time of revaluation. The company's
accounting policy is to reverse a portion of the revaluation surplus account related to increased depreciation expense. On January 2, Year 4, the company sells the building for $3,500,000.
Required: 1-Determine the amounts to be reflected in the balance sheet related to this building for Years 1-4 in the following table. (Use parentheses to indicate credit amounts.)
Date
4 January 1, Year 1
5 December 31, Year 1
6 December 31, Year 2
7 December 31, Year 2
8 Balance
9 December 31, Year 3
10 Balance
11 Sale, Jan 2, Year 4
12 Balance
13
Cost
Accumulated
depreciation
Carrying Amount
Revaluation Surplus
Income
Retained Earnings

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Calculate Depreciation and Revaluation Surplus for Year 1

VIEW

Step 2: Calculate Depreciation and Loss on Revaluation for Year 2

VIEW

Step 3: Calculate Depreciation and Gain on Revaluation ( Revaluation Surplus) for Year 3

VIEW

Step 4: Calculate Profit/Gain on Sale of Asset for year 4

VIEW

Step 5: Formulas used in computing above values

VIEW

Solution

VIEW

Step by step

Solved in 6 steps with 10 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

please answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image)
What accounting concepts are used in the balance sheet (mainly on assets) based on the data provided below?
The December 31, Year 4, balance sheet for Finch Corporation is presented here. These are the only accounts on Finch's balance sheet. Amounts indicated by question marks (?) can be calculated using the following additional information: Assets Cash FINCH CORPORATION Balance Sheet As of December 31, Year 4 Accounts receivable (net) Inventory Property, plant, and equipment (net) Liabilities and Stockholders' Equity Accounts payable (trade) Income taxes payable (current) Long-term debt Common stock Retained earnings Additional Information Current ratio (at year end) Total liabilities + Total stockholders' equity Gross margin percentage $35,000 a. Accounts payable b. Retained earnings Inventory C. 292,000 $442,000 $ ? P $ P 35,000 298,000 Inventory turnover (Cost of goods sold + Ending inventory) Gross margin for Year 4 12 1.6 to 1.0 70% 40% 9.6 times Required a. Compute the balance in trade accounts payable as of December 31, Year 4. b. Compute the balance in retained earnings as of…
How did the Accounts Receivable write-off affect GENERAL MILLSS' financial statement? (in millions) Assets (Balance Sheet) [Select ] Net Income (Income Statement) [ Select ] Operating CF (Statement of CF) [ Select ]
Please answer required a and b
Analysis above two financial statement, what you can observe without using financial ratio.
5.Mention four items of current assets and two items of current liabilities.
Click on the icons located on the top-right corners of the data tables below to copy their contents into a spreadsheet. Income Statement Balance Sheet Sales $202,590 Assets Cash and Equivalents Accounts Receivable Costs Except Depreciation $14,950 (99,910) $102,680 EBITDA 1,980 (5,940) $96,740 4,100 $21,030 Depreciation Inventories EBIT Total Current Assets Property, Plant, and Equipment Interest Expense (net) (490) 9,990 Pre-tax Income $96,250 Total Assets $31,020 (33,688) $62,562 Income Tax Liabilities and Equity. Accounts Payable Net Income $1,550 4,080 $5,630 Debt Total Liabilities Stockholders' Equity Total Liabilities and Equity 25,390 $31,020 For the next fiscal year, you forecast net income of $49,600 and ending assets of $508,300. Your firm's payout ratio is 10.6%. Your beginning stockholders' equity is $299,900, and your beginning total liabilities are $120,400. Your non-debt liabilities such as accounts payable are forecasted to increase by $10,400. Assume your beginning…
Select the balance sheet category where the items given would best typically appear. Items 1. Bond investment to be held through maturity in five years 2. Trademarks 3. Accounts receivable 4. Notes payable (due in five years) 5. Wages Payable 6. Store equipment 7. Accounts payable 8. Notes receivable (due in 2 months) Balance Sheet Category
Requesting a statement from a major customer as to its agreement or disagreement with a year-end receivable balance is an example of: * Scanning O Inspection of tangible assets O Confirmation O Recalculation
.
Which of the following situation can be related to accrual concept while presentation of financial reports? I. Depreciation charged on property plant and equipment under straight line method at 12% and presented in the income statement. II. Provision for warranty claims presented in the financial statements. III. Dividend received from investments made in other company equity shares presented as per IAS 7. IV. Prepaid expenses paid and made necessary adjustment in the books of accounts. a- III and IV only b- I, II, III and IV only c- I, II and IV only d- I and II only