Kingfisher Ltd had the following noncurrent assets on its balance sheet at 30 June 2020: 

On 1 July 2020, the land was revalued to $300 000, and the plant and equipment was revalued to $140 000. One year later, on 1 July 2021, the recoverable amount of the plant and equipment was determined to be $100 000, and it was revalued accordingly. Depreciation for all relevant items is on a straight-line basis, over a 10-year period with no residual value. 

1. Prepare journal entries to record the revaluation of the land on 1 July 2020. 

2. Prepare journal entries to record the revaluation of the plant and equipment on 1 July 2020. 

3. Prepare journal entries to record the revaluation of the plant and equipment on 1 July 2021. 

4. Assuming that there are no acquisitions or disposals of noncurrent assets, construct the noncurrent assets section of Kingfisher’s balance sheet as at 30 June 2022.

Transcribed Image Text:

Land Plant and equipment Less: Accumulated depreciation $ 150 000 (30 000) $ 320 000 120 000 440 000