User Account

All Pages

Prepare the journal entries relating to impairment

Assignment Help Accounting Basics
Reference no: EM131572862

Question - At 30 June 2009, Reacher Ltd reported the following assets:

Land $50,000

Plant 250,000

Accumulated depreciation (50,000)

Goodwill 8,000

Inventory 40,000

Cash 2,000

All assets are measured using the cost model.

At 30 June 2009, the recoverable amount of the entity, considered to be a single cash-generating unit, was $272,000.

For the period ending 30 June 2010, the depreciation charge on plant was $18,400. If the plant had not been impaired the charge would have been $25,000.

At 30 June 2010, the recoverable amount of the entity was calculated to be $13 000 greater than the carrying amount of the assets of the entity. As a result, Reacher Ltd recognized a reversal of the previous year's impairment loss.

Required:

Prepare the journal entries relating to impairment at 30 June 2009 and 2010.

Can you explain how to prepare the journal entries relating to impairment at 30 June 2009 and 2010?

Reference no: EM131572862

Questions Cloud

Identify a specific evidence-based practice proposal : In collaboration with your approved course mentor, you will identify a specific evidence-based practice proposal topic for the capstone project.
Describe what you would look for in investigating fraud : You, a forensic accountant, have recently been hired to investigate, Describe what you would look for in investigating this type of fraud
The international monetary fund : The international monetary fund. The incremental effect of a project on the firm's available cash is the project's free cash flow.
What was life like for the average : From the beginnings of Atlantic City and through it's boom period (one of many) in the late 1900's what was life like for the average.
Prepare the journal entries relating to impairment : At 30 June 2009, Reacher Ltd reported the following assets: Prepare the journal entries relating to impairment at 30 June 2009 and 2010
A proxy statement is statement transferring : A proxy statement is a statement transferring? ________.
Discuss fraud involving concealed liabilities and expenses : Briefly discuss fraud involving concealed liabilities and expenses, red flags associated with the fraud
Future value at simple interest rate r after time t : Determine the present value P you must invest to have the future value A at simple interest rate r after time t.
Determine the? loan simple interest rate : Determine the? loan's simple interest rate r to the nearest tenth of a percent.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Using the following accounts and balances taken from a

using the following accounts and balances taken from a year-end balance sheet calculate working capital accounts

  Cost of capital for its average asset

Langston Labs has an overall (composite) WACC of 10%, which reflects the cost of capital for its average asset. Its assets vary widely in risk, and Langston evaluates low-risk projects with a WACC of 8%, average-risk projects at 10%, and high-risk..

  Write and evaluate an integral for the total weight of water

Consider a very thin ring of radius rk and centered at the center of the pond. Based on your result from part a., write and evaluate an integral for the total weight of water in the pond?

  Determine unknown cash sales revenue

A business using the cash basis of accounting cannot locate all of its records for a given month of operations. Beginning cash was $22,260 and ending cash.

  What would be the book value at end of year 1

A truck costs $16,000 with a residual value of $1,000. It has an estimated useful life of 5 years. If the truck was bought on July 3, what would be the book value at end of year 1?

  Horton foods bakes and sells 1000 dozen bagels each week to

horton foods bakes and sells 1000 dozen bagels each week to food service operations. among the costs are bakers

  What is the contribution margin ratio and fixed cost

Sales are $750,000, variable costs are 70% of sales, and income from operations is $100,000. What is the contribution margin ratio and fixed cost

  At december 31 2010 the records of seacrest enterprises

at december 31 2010 the records of seacrest enterprises provided the following selected and incomplete

  Comparison different types of accounting by lessee and lesor

Describe how a capital lease would be accounted for by the lessee both at the inception of the lease and during the first year of the lease, assuming the lease transfers ownership of the property to the lessee by the end of the lease.

  Make a classified balance sheet in good form common stock

presented below are a number of balance sheet items for montoya inc. for the current year

  Vandolay industries agreed to these terms and reversed 7000

prepare journal entries to record the following transactions1 on december 15 2008 the company recorded 150000 sales on

  Equally own real property as joint tenants

Rachel, Bonnie, and Cindy equally own real property as joint tenants. Cindy sells her one-third interest to Debbie. Neither Rachel nor Bonnie consented to this transfer. Both Rachel and Bonnie die before either Cindy or Debbie. What portion of ..

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