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Concept Introduction:
International financial reporting framework (IFRS):
International
United States generally accepted Accounting Policies (US GAAP):
United States generally Accepted Accounting Policies is the accounting framework/ accounting standards followed in the United States to prepare the financial statements. US GAAPS are issued by Financial Accounting Standards Board (FASB).
Requirement-1:
To Prepare:
The
Answer to Problem 6E
The journal entry to record the depreciation expense on Property, plant, and equipment is as follows:
| Journal entries | ||
| Account Titles | Debit | Credit |
| Depreciation Expense | 7,509 | |
| 7,509 | ||
Explanation of Solution
The journal entry to record the depreciation expense on Property, plant, and equipment is explained as follows:
| Journal entries | ||
| Account Titles | Debit | Credit |
| Depreciation Expense | 7,509 | |
| Accumulated Depreciation | 7,509 | |
| (Being depreciation expense recorded) | ||
Concept Introduction:
International financial reporting framework (IFRS):
International financial reporting framework is the accounting framework/ accounting standards followed internationally to prepare the financial statements. IFRS are issued by the International Accounting Standards Board (IASB). IFRS fulfill the objective of common accounting standards worldwide.
United States generally accepted Accounting Policies (US GAAP):
United States generally Accepted Accounting Policies is the accounting framework/ accounting standards followed in the United States to prepare the financial statements. US GAAPS are issued by Financial Accounting Standards Board (FASB).
Requirement-2:
To Prepare:
The journal entry to record the addition to Property, plant, and equipment
Answer to Problem 6E
The journal entry to record the addition to Property, plant, and equipment is as follows:
| Journal entries | ||
| Account Titles | Debit | Credit |
| Property, plant, and equipment | 11,560 | |
| Cash | 11,560 | |
| (Being addition to Property, plant, and equipment recorded) | ||
Explanation of Solution
The journal entry to record the addition to Property, plant, and equipment is explained as follows:
| Journal entries | ||
| Account Titles | Debit | Credit |
| Property, plant, and equipment | 11,560 | |
| Cash | 11,560 | |
| (Being addition to Property, plant, and equipment recorded) | ||
Concept Introduction:
International financial reporting framework (IFRS):
International financial reporting framework is the accounting framework/ accounting standards followed internationally to prepare the financial statements. IFRS are issued by the International Accounting Standards Board (IASB). IFRS fulfill the objective of common accounting standards worldwide.
United States generally accepted Accounting Policies (US GAAP):
United States generally Accepted Accounting Policies is the accounting framework/ accounting standards followed in the United States to prepare the financial statements. US GAAPS are issued by Financial Accounting Standards Board (FASB).
Requirement-3:
To Prepare:
The journal entry to record the disposal of Property, plant, and equipment
Answer to Problem 6E
The journal entry to record the disposal of Property, plant, and equipment is as follows:
| Journal entries | ||
| Account Titles | Debit | Credit |
| Cash | 720 | |
| Accumulated Depreciation | 1,195 | |
| Loss on Disposal | 515 | |
| Property, plant, and equipment | 2,430 | |
Explanation of Solution
The journal entry to record the disposal of Property, plant, and equipment is explained as follows:
| Journal entries | ||
| Account Titles | Debit | Credit |
| Cash | 720 | |
| Accumulated Depreciation | 1,195 | |
| Loss on Disposal (2430-1195-720) | 515 | |
| Property, plant, and equipment | 2,430 | |
| (Being disposal of Property, plant, and equipment recorded) | ||
Concept Introduction:
International financial reporting framework (IFRS):
International financial reporting framework is the accounting framework/ accounting standards followed internationally to prepare the financial statements. IFRS are issued by the International Accounting Standards Board (IASB). IFRS fulfill the objective of common accounting standards worldwide.
United States generally accepted Accounting Policies (US GAAP):
United States generally Accepted Accounting Policies is the accounting framework/ accounting standards followed in the United States to prepare the financial statements. US GAAPS are issued by Financial Accounting Standards Board (FASB).
Requirement-4:
To Indicate:
The effect of the Impairment on the value of Property, plant, and equipment
Answer to Problem 6E
The Impairment shall reduce the net value of Property, plant, and equipment by 143.
Explanation of Solution
The journal entry to record the impairment of Property, plant, and equipment is explained as follows:
| Journal entries | ||
| Account Titles | Debit | Credit |
| Loss on Impairment | 143 | |
| Property, plant, and equipment | 143 | |
| (Being Impairment loss recorded) | ||
Hence, the Impairment shall reduce the net value of Property, plant, and equipment by 143.
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Chapter F Solutions
Fundamental Accounting Principles
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