Prepare the journal entries to record disposal of warehouse

Assignment Help Accounting Basics
Reference no: EM132782680

On 1 January 2019, Li & Lo Ltd purchased a warehouse at a total cost of $160,000. The estimated useful life for the warehouse was 20 years, with a residual value of $60,000. The warehouse is depreciated using the diminishing balance method, at a rate of 10% per year.

On 1 January 2020, the warehouse was revalued increasing its value by $40,000.

LI & Lo Ltd's reporting period ends on 31 December.

Required:

Problem 1: Prepare the journal entries to record the purchase of the warehouse.

Problem 2: Prepare the adjusting journal entries at 31 December 2019 and the revaluation on 1 January 2020

Problem 3: The warehouse was sold on 30 June 2020 for $180,000. Prepare the journal entries to record the disposal of the warehouse.

Reference no: EM132782680

Questions Cloud

Explain how using darts versus coins affects the experiment : Consider an experiment in which darts are thrown at a wall target against an experiment where small objects (coins) are tossed at target on ground.
What is the ball terminal velocity : A 1.35 kg ball is dropped off a tall building. The air density is 1.20 kg/m3 and the radius of the ball is 30.0 cm. The coefficent of of drag is 0.47
How much is recognized as grant income for the year : The fair value of the land is currently Php 120,000,000. How much is recognized as grant income for the year ended December 31, 2020?
How does current value effect the needle : How does current value effect the needle on a compass around a magnet.
Prepare the journal entries to record disposal of warehouse : On 1 January 2019, The warehouse was sold on 30 June 2020 for $180,000. Prepare the journal entries to record the disposal of the warehouse.
PSY 101 Smarter Decisions through Psychology Assignment : PSY 101 Smarter Decisions through Psychology Assignment Help and Solution - Strayer University, USA - Homework Help - Why may Gary value his peers more
Find the wavelength of the waves : A student performs Young's double-slit experiment using a slit separation of 21.6 µm. A screen is placed 2.50 m from the centre of the sources such
What is the amount of each sinking-fund payment : What overall annual effective compound interest rate is the company paying to borrow the $100 000 when account is taken of the sinking-fund requirement?
What is a possible disadvantage of designing a car : What is a possible disadvantage of designing a car for only one crash speed?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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