(Learning Objectives 1, 2: Recording PPE transactions; reporting on the balance sheet) Romano Lakes Resort reported the...
Question:
(Learning Objectives 1, 2: Recording PPE transactions; reporting on the balance sheet) Romano Lakes Resort reported the following on its balance sheet at December 31, 20X6:
In early July 20X7, the resort expanded operations and purchased additional equipment at a cost of $102,000. The company depreciates buildings by the straight-line method over 20 years with residual value of $89,000. Due to obsolescence, the equipment has a useful life of only 10 years and is being depreciated by the double-declining-balance method with zero residual value.
❙ Requirements 1. Journalize Romano Lakes Resort’s PPE purchase and depreciation transactions for 20X7.
2. Report PPEs on the December 31, 20X7, balance sheet.
Step by Step Answer:
Financial Accounting International Financial Reporting Standards
ISBN: 9780273777809
1st Global Edition
Authors: Walter T Harrison, Charles Horngren, Bill Thomas, Themin Suwardy