User Account

All Pages

How great things bhd shall account for the transfer of use

Assignment Help Financial Accounting
Reference no: EM132962848

Problem 1: On 1 March 2020, Great Things Bhd purchases an office building at a cost of RM2,200,000. Great Things Bhd adopts the cost model to measure its investment property. The company has the intention to letting out the building to tenants. However, due to the Covid-19 pandemic and the Movement Control Order, the management of Great Things Bhd immediately decides to sell the office building. Thus, Great Things Bhd commences development on the office building for sale purposes and thus reclassified it as inventory. The fair value of the office building as at the date of change in use is RM2,250,000. How Great Things Bhd shall account for the transfer of use?

a) Dr Investment Property RM2,250,000; Cr Inventory RM2,250,000.

b) Dr Inventory RM2,250,000; Cr Investment Property RM2,250,000.

c) Dr Inventory RM2,200,000; Cr Investment Property RM2,200,000.

d) Dr Inventory RM2,250,000; Cr Investment Property RM2,200,000; Cr Gain in SOPL RM50,000.

Reference no: EM132962848

Questions Cloud

Compute the intrinsic value and dividend yield : The discount rate is 15%, compounded monthly. Compute the intrinsic value and dividend yield of the stock, which is priced at $38.50 today
Entrepreneurial status a meta-analytical review : What is the summary of the article "The Big Five Personality Dimensions and Entrepreneurial Status a Meta-Analytical Review" written by Hao Zhao and Scott E. Se
Basic language based skills in interpersonal communication : What is the basic language- based skills in interpersonal communication, business etiquette and relationship- building in workplace must a person have
How much would be reported as wages expense : At year-end 2020 wages owing but unpaid were $2400. The salon uses accrual accounting. How much would be reported as wages expense for 2020
How great things bhd shall account for the transfer of use : The fair value of the office building as at the date of change in use is RM2,250,000. How Great Things Bhd shall account for the transfer of use?
What the journal entries of ais kepal bhd as at december : Ais Kepal Bhd to adopt the fair value model to account for its investment properties. The journal entries of Ais Kepal Bhd as at 31 December 2020
Briefly explain why these restrictions were put into place : Briefly explain why these restrictions were put into place. List four types of services that are prohibited by the act
Concepts of substantive and procedural fairness : John works as an analyst for ECH holdings. One morning he is asked by his manager to deliver a parcel to a client in town using the company car. While on route,
Calculate the cost of the property allocated to investment : The portion of the buildings cannot be sold separately. Calculate the cost of the property allocated to investment property on initial recognition.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Find the firm weighted average cost of capital

A firm is financed using 25% debt and 75% equity. If the cost of debt is 8% pa and the cost of equity 11% pa, the firm's weighted average cost of capital?

  How calculating the number of shares in issue

Pukri Limited, Calculate the dividends per share (for the first alternative, i.e. pay the dividend). Calculating the number of shares in issue

  Explain your disagreement with rousseaus philosophy

explain your disagreement with Rousseau's philosophy of education as it applies to your experience in gaining knowledge

  What is amount of net income using periodic inventory system

Using the following information for a periodic inventory system, what is the amount of net income? Inventory, September 30 9,562

  Determine what is the yield to maturity

ABC's bonds have a 5.5% coupon and pay interest semi-annually. What is the yield to maturity? What is the current yield? What is the yield to call?

  What was the company cash balance on March

Weimar World, a tax-preparation service, had a cash balance of $245,000 as of March 1. What was the company's cash balance on March 31

  How much is left for after all taxes are? paid

The corporate tax rate is 36%?, and your personal tax rate on? (both dividend and? non-dividend) income is 25%. How much is left for after all taxes are? paid

  How should sales force respond

How should sales force.com respond, if at all, to the criticism that its method of accounting for sales commissions distorts the company's financial performance

  What characteristics closely associated with common stock

What characteristics is more closely associated with common stock (C) or preferred stock (P)? Is considered the residual equity of a company

  Find what current stock price according to constant growth

The Black Forest Cake, what is the current stock price according to the constant growth dividend model? Round the answer to two decimal places.

  Prepare journal entry on bostons books for debt restructure

Prepare the journal entry on Boston's books for the debt restructure. Prepare the journal entry on San Diego's books for the debt restructure.

  What is the balance of the allowance for doubtful accounts

What is the balance of the allowance for doubtful accounts for Rickard as at November 30, 20X5?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd