Waterway Ltd. acquired an excavator on January 1, 2020, for ¥11,600 (all amounts in thousands). This excavator represents the company's only piece of equipment, and Waterway chooses revaluation accounting. This excavator is being depreciated on a straight- line basis over its 10-year useful life. There is no residual value at the end of the 10-year period. The appraised value of the excavator approximates the carrying value at December 31, 2020 and 2022. On December 31, 2021, the fair value is determined to be ¥10,208; on December 31, 2023, the fair value is determined to be ¥5,800. (a) Show all journal entries for each year-end from 2020 through 2023. (If no entry is required, select "No entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit

Waterway Ltd. acquired an excavator on January 1, 2020, for ¥11,600 (all amounts in thousands). This excavator represents the company's only piece of equipment, and Waterway chooses revaluation accounting. This excavator is being depreciated on a straight- line basis over its 10-year useful life. There is no residual value at the end of the 10-year period. The appraised value of the excavator approximates the carrying value at December 31, 2020 and 2022. On December 31, 2021, the fair value is determined to be ¥10,208; on December 31, 2023, the fair value is determined to be ¥5,800. (a) Show all journal entries for each year-end from 2020 through 2023. (If no entry is required, select "No entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit

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

Waterway Ltd. acquired an excavator on January 1, 2020, for ¥11,600 (all amounts in thousands). This excavator represents the
company's only piece of equipment, and Waterway chooses revaluation accounting. This excavator is being depreciated on a straight-
line basis over its 10-year useful life. There is no residual value at the end of the 10-year period. The appraised value of the excavator
approximates the carrying value at December 31, 2020 and 2022. On December 31, 2021, the fair value is determined to be ¥10,208;
on December 31, 2023, the fair value is determined to be ¥5,800.
(a) Show all journal entries for each year-end from 2020 through 2023. (If no entry is required, select "No entry" for the account titles and
enter o for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal
entries in the order presented in the problem.)
Date
Account Titles and Explanation
Debit
Credit

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