Prepare the journal entries for the year ended October

Assignment Help Financial Accounting
Reference no: EM132800021

Question -

A. State any 2 examples of properties that are not considered as investment property in accordance with MFRS 140 Investment Property.

B. On 1 July 2017, Didi Bhd acquired a 7-storey building for RM6,000,000. The estimated useful life of the 7-storey building was 50 years. The 7-storey building was depreciated on a monthly basis. The 7-storey building was rented out to third parties at RM500,000 per annum. As at 31 October 2018 and 31 October 2020 the fair value of the 7-storey building were RM6,200,000 and RM6,070,000 respectively. The financial year ends on 31 October every year.

Required -

i. Explain the accounting treatment of the building for the year ended 31 October 2017 if Didi Bhd adopted cost model in the measurement of its asset.

ii. Prepare the journal entries for the year ended 31 October 2018 and 31 October 2020 if Didi Bhd adopted fair value model in the measurement of its investment property.

Reference no: EM132800021

Questions Cloud

Prepare journal entries to record recognition of fair value : Prepare the journal entries to record the recognition of fair value for 2020 and assuming the sale of the investment for $377,000 on December 31, 2020
Describe three key elements of industrial agreements : Describe three key elements of industrial agreements that impact on developing rosters.
Draft an updated organizational structure chart : Draft an updated organizational structure chart that addresses management and communication concerns.
Discuss the artist and two art samples : Choose one artist or architect that is included in any week of our course lessons, readings, or other areas. In this essay, fully discuss the artist and two.
Prepare the journal entries for the year ended October : Prepare the journal entries for the year ended 31 October 2018 and 31 October 2020 if Didi Bhd adopted fair value model in the measurement
Service operations management reading : Service Operations Management Reading:Service Management Bordoloi, S., Fitzsimmons, J., & Fitzsimmons, M. (2019). . New York: McGraw-Hill Education.
Calculate the total interest that will be paid at maturity : Moon Inc. borrowed $100,000 from the bank by entering into a 9-month note at 4% interest dated March 1, 2019. Calculate the total interest
Explain the autism spectrum disorder : Based on an analysis of students with Autism Spectrum Disorder or more severe disabilities, brieflyindicate your understanding of the following.
Objective of minimizing total daily labor costs : 1. Formulate an ILP for this problem with the objective of minimizing total daily labor costs.

Reviews

Write a Review

Financial Accounting Questions & Answers

  What is the accounting rate of return

What is the accounting rate of return? Compute the accounting rate of return for an investment that requires an initial outlay of $300,000 and promises an average net income of $100,000.

  What was the company free cash flow for the year

If total net operating capital in the previous year was $24 million, what was the company's free cash flow (FCF) for the year

  Calculate market value weighted average cost of capital

Calculate the market value weighted average cost of capital (WACC) of Tswinga Ltd and of Muledane Ltd - Discuss two possible reasons why the cost of ordinary share capital differs between the two businesses.

  What was the total investment-related income

What was the total investment-related income that QFI should have reported on its income statement for the year ended December 31, 20X6, pertaining

  How to calculate a monthly payment for a loan

How to calculate a monthly payment for a loan. A related formula is to calculate the amount accruing when regular payments are made into an interest bearing

  Discuss the three main financial statements

Discuss the 3 main financial statements and what information is revealed about the company's current position and other related financials that are used.

  What is the northern divisions net operating income

Northern Division has sales of $900,000, a return on investment of 15%, and a turnover ratio of 3.0. What is the Northern Division's net operating income?

  Balance sheet showed a balance

During the year, Able Co. purchased $39,600 worth of supplies, at the end of the year, the balance sheet showed a balance of $1,760 in the supplies account.

  Compute net income for first year for alpaca corporation

Alpaca Corporation had revenues of $200,000 in its first year of operations. The company has not collected on $20,000 of its sales and still owes $25,000 on $70,000 of merchandise it purchased. The company had no inventory on hand at the end of the y..

  Determine the capitalized value of artificial intelligent

Explain the treatment in the financials to be given to any cost or item not utilized in computing the capitalized value of the machinery.

  What is the advice at interest rates

Offer B is a $11m offer of $1m a year for four years and $7m in year 5. What is your advice at 8%,9% , 10% and 11% interest rates?

  What amount should be recognized as the tax benefit

What amount should be recognized as the tax benefit as of December 31, year 1? On December 31, Year 1, a publicly traded entity identified

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