Reference no: EM132543276

Tina ltd produces a thick, foul-smelling medicine that has been found to be excellent in warding off Hester in Wonderland Syndrome (HIWS), or micropsia, which is disorienting neurological condition which affects human visual perception.

1. Patients with this disease perceive humans, animals and inanimate objects as substantially smaller than in reality.
2. Tina ltd's factory operated from a building that it owned, situated in mandume street in windhoek.
3. on the 30 June 2019, however, the factory operated from a building was swallowed by a giant sinkhole caused by a tropical storm.
4. this factory building has been purchased on 1 January 2019 for N$1200000 and was thought to have a total useful life of 10 years and a residual value of nil.
5. Thankfully this happened at night while the building was empty. Tina ltd was also fortunate in that it owned another property three roads away in Independence avenue. This other property was, at the time leased to Sandrine Kuame under an operating lease. Sandrine was generally late in paying her lease rentals and this natural diaster gave tina ltd a perfect opportunity to evict her with emmediate effect so that they could move their factory into the undamaged building this eviction and relocation was effective in 30June 2019.

the bulding was purchased on the 1January 2019 for N$500000

Had a fair value oof N$950000 on 30 June 2019

there was no change in fair value at 31 dec 2019 and

the total number of estimated useful life was 10 years and the residual value was estimated to be nil.

tina ltd measures:

ppe using cost model

investment oroperties using fair value model.

Question a) Provide journal entries to account for all the above transactions in Tina Ltd's financial statements for the year ended 31 December 2019

Question b) Provide journal entries for all of the above transactions for the year ended 28 Feb 2020. ignore narrations.