Prepare journal entries to reflect the revaluation of asset

Assignment Help Accounting Basics
Reference no: EM132811557

Question - An asset having a cost of $200 000 and accumulated depreciation of $40 000 is revalued to $240 000 at the beginning of the year. Depreciation for the year is based on the revalued amount and the remaining useful life of eight years. Shareholders' equity, before adjusting for the above revaluation and subsequent depreciation, is as follows:

Share capital 600,000

Revaluation surplus 90,000

Capital profits reserve 170,000

Retained earnings 140,000

Total 1,000,000

Required - Prepare journal entries to reflect the revaluation of the asset and the subsequent depreciation of the revalued asset. Which of the equity accounts would be affected directly or indirectly by the revaluation?

Reference no: EM132811557

Questions Cloud

Discuss the risks and benefits of calcium supplementation : Using an article from a medical journal, evaluate and discuss the risks and benefits of calcium supplementation for a patient with a bone disease.
What is the irr of the better project : A company is analyzing two mutually exclusive projects, S and L, with the following cash flows: 4 Project S $1,000 Project L $1,000
What is the taxable amount of her social security benefits : Delia Mertz is an unmarried person who is 75 years old. Fully taxable pension $20,000. What is the taxable amount of her social security benefits
Which is not considered compensation : Which is not considered compensation? Which is not a requisite for substituted filing of income tax return (ITR)? One employer during the year
Prepare journal entries to reflect the revaluation of asset : Prepare journal entries to reflect the revaluation of the asset and the subsequent depreciation of the revalued asset
Much of what we examined this week with biblical tradition : Much of what we examined this week with Biblical tradition and the Ancient Roman empire involves traditions started in these times that have filtered down to modern day; specifically we examined the feast of Passover. However, from Biblical times to ..
Describe an innovative idea you have been entertaining : Describe an innovative idea you have been entertaining. Include what grants you could write and the potential outcomes of the idea. Include how entrepreneurship
How should the gains be taxed : Mrs. Lim, a resident alien, bought 22 karat necklace for Php 100,00 in 2017. At the end of the year, she sold the necklace for 150,000. How should the gains
Effectiveness of any of existing efforts been measured : Has the effectiveness of any of these existing efforts been measured? Explain. How do you measure the effectiveness of new or existing programs? Explain.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Determine the insurance premiums expired during year

Depreciation of trucks during year is $6,000.E.Wages accrued but not paid at March 31 are $500,Insurance premiums expired during year are $3,000.

  Determine the amount of joint cost

Determine The amount of joint cost that should have been allocated to the Pork Palace in April is calculated to be, Bradbo owned two adjoining restaurants

  Seagren industries inc manufactures in separate processes

seagren industries inc. manufactures in separate processes furniture for homes. in each process materials are entered

  Discuss the differences between storing data in access and

discuss the differences between storing data in access and excel. why would you use a spreadsheet over a database? at

  How much is allocated to the preference shares

An equipment with acquisition cost of P900, 000, book value of P450, 000 and fair value of P500, 000. How much is allocated to the preference shares

  How much money did toys or more borrow on october

How much money did Toys Or More borrow on October 15, 2017? On October 15, 2017, Toys Or More borrowed money with a promise to pay

  Compute the earnings per share ratio

The income statement for XYZ for the year ended December 31, 2016, Compute the following ratios for 2016: earnings per share and price-earnings

  What is the rate of return of return on invested capital

What is the rate of return of return on invested capital if $1000 is invested now with $500 being returned in year 4 and $1000 being returned in year 8?

  Prepare journal entries for transactions for city of buffalo

Prepare journal entries for the transactions.The budget was passed. Estimated revenues amounted to $1,230,000 and appropriations totaled $1,227,400.

  Gain on sale of debt investements

Tolan co. purchased 30,6% irick company bonds for 60,000 cash plus brokerage fees of $600. Interest is payable seminannualy on july 1 and january 1. if 15 of the securities are sold on july 1 from $31,000 less $300 brokerage fees, the entry would ..

  Discuss the market value of the bonds

Yum-Yum intends to hold the bonds until they mature. The market value of the bonds

  Requisitioned from the materials storeroom daily

Rollie Manufacturing makes, among other things, wheels for roller skates. Manufacturing Department B receives plastic wheel casings from Manufacturing Department A and puts them on axles along with some ball bearings. The wheel casings have been i..

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!

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