Prepare the relevant journal entries

Assignment Help Accounting Basics
Reference no: EM132924926

Question - Entity A owns a plant that was originally purchased for $4,500,000. On 31 Dec 2019, the plant has been revalued to $6,000,000 with the revaluation of $3,000,000 being recognised as other comprehensive income and recorded in the revaluation reserve as a surplus.

On 31 Dec 2020, the plant has a carrying amount of $5,000,000 but the recoverable amount of the plant has just been estimated at only $1,500,000.

REQUIRED - According to the accounting standards, prepare the relevant journal entries related to the impairment loss on 31 Dec 2020.

Reference no: EM132924926

Questions Cloud

Calculate Christie wages in lieu of notice : Christie has worked for Digger Industries for five years and earns $31.08 per hour. Calculate Christie wages in lieu of notice
What is the spending variance for supplies expense : The company's planned level of activity was 2000 hours and its actual level of activity was 1900 hours. What is the spending variance for supplies expense
What the predetermined overhead rate : Estimated direct labor hours 12,000. If factory overhead is to be applied based on direct labor dollars, what the predetermined overhead rate
Record the transactions : The firm needed urgent money, that's why 80% of the package was sold at a selling price of 105%. Record the above transactions
Prepare the relevant journal entries : According to the accounting standards, prepare the relevant journal entries related to the impairment loss on 31 Dec 2020
What would be reported for ending merchandise inventory : What would be reported for Ending Merchandise Inventory on the balance sheet at December 31, 2018 if the perpetual inventory system
What characteristics of financial information : To be the most useful to users of financial statements, what characteristics of financial information should be included in
What the spending variance for this expense : Assume that the cost formula for one of a company's mixed expenses is $10,000 + $4.00 per unit. What the spending variance for this expense
How much money have you accumulated for your retirement : How much money have you accumulated for your retirement? Your account pays you 17.48 percent per year, compounded annually

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