Reference no: EM132721741
Question - Sammi Ltd. on December 31, 2020, showed the following equipment asset:
Equipment $200,000
Less: accumulated depreciation 56,000
144,000
All depreciation has been calculated for 2020. Sammi uses straight-line depreciation for its equipment and at the end of 2020 the remaining useful life of the equipment is 5 years with no residual value. Sammi uses the revaluation model to account for equipment and revalues the equipment every two years.
- On December 31, 2020, an independent appraiser assessed the fair value of the equipment to be $130,000.
- The only other time the equipment was revalued was on December 31, 2018, and the equipment was revalued with a gain on revaluation of $6,000.
Required -
(a) Prepare the necessary general journal entry(ies), if any, to revalue the equipment as at December 31, 2020, using the asset adjustment method (as done in class).
(b) Prepare the entry to record depreciation expense for the year ended December 31, 2021.
(c) Show how the equipment would be presented on the December 31, 2021 classified statement of financial position.
|
What is the estimated dollar value of the inventory
: The gross profit rate on these sales was 35%. What is the estimated dollar value of the inventory at December 31
|
|
What is the intent and purpose of hipaa
: Data breaches, whether involving credit card or medical information, have become commonplace. With so much personal information now available electronically.
|
|
Make Part RS4
: Cool Components has offered to sell Total Refrigeration 10,000 units of Part RS4 for $18 per unit. Make Part RS4 because it would be $15,000 per year cheaper
|
|
Create all of the journal entries relating to the property
: Create all of the 2020 journal entries relating to the property assuming instead that the fair value model is used to account for the investment property
|
|
Prepare the necessary general journal entry
: Prepare the necessary general journal entry(ies), if any, to revalue the equipment as at December 31, 2020, using the asset adjustment method
|
|
Describe the sources of the definitions
: Describe the sources of the definitions that you are comparing and contrasting, as well as their definitions of diversity. Describe SHRM's and the scholarly.
|
|
How accounting numbers can be used in the debt covenants
: Furthermore, he is interested to know how accounting numbers can be used in the debt covenants to help control any opportunistic behaviour on the part of Kezza
|
|
What are potential tax effects to the distributing company
: What are the potential tax effects to the distributing company (client) and the receivers (shareholders)
|
|
What strategies are framed by the utilization
: The standard practice in strategy and marketing is to lay out a vision of future events which are precise enough to be captured in an environment analysis.
|