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Hirsch Company acquired equipment at the beginning of 2017 at a cost of $131,100. The equipment has a five-year life with no expected salvage value and is depreciated on a straight-line basis. At December 31, 2017, Hirsch compiled the following information related to this equipment: Expected future cash flows from use of the equipment Present value of expected future cash flows from use of the equipment Fair value (selling price less costs to dispose) $ 112,300 96,600 93,060 Assume that a U.S.-based company is issuing securities to foreign investors who require financial statements prepared in accordance with IFRS. Thus, adjustments to convert from U.S. GAAP to IFRS must be made. Ignore income taxes. Required: a. Prepare journal entries for this equipment for the years ending December 31, 2017, and December 31, 2018, under (1) u.s. b. Prepare the entry(ies) that Hirsch would make on the December 31, 2017, and December 31, 2018, conversion worksheets to convert U.S. GAAP balances to IFRS. Ignore the possibility of any additional impairment at the end of 2018. Complete this question by entering your answers in the tabs below. Required A Required B Prepare the entry(ies) that Hirsch would make on the December 31, 2017, and December 31, 2018, conversion worksheets to convert U.S. GAAP balances to IFRS. Ignore the possibility of any additional impairment at the end of 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Required A Required B Prepare journal entries for this equipment for the years ending December 31, 2017, and December 31, 2018, under (1) U.S. GAAP and (2) IFRS. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 > Record the entry for the purchase of equipment as per U.S. GAAP. Note: Enter debits before credits General Journal Date 01/01/2017 Debit Credit Journal entry worksheet Record the entry for the expense on depreciation of equipment as per U.S.. GAAP. Note: Enter debits before credits Date 12/31/2017 General Journal Debit Credit View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 Record the entry for the purchase of equipment as per IFRS. Note: Enter debits before credits General Journal Date 01/01/2017 Debit Credit Journal entry worksheet Record the entry for the expense on depreciation of equipment as per IFRS. Note: Enter debits before credits. Date General Journal Debit Credit 12/31/2017 Journal entry worksheet Record the entry for the loss on impairment of equipment as per IFRS. Note: Enter debits before credits Date General Journal Debit Credit 12/31/2017 Journal entry worksheet, Record the entry for the loss on impairment of equipment as per U.S. GAAP. Note: Enter debits before credits. Date General Journal Debit Credit 12/31/2017 Journal entry worksheet 1 2 3 4 5 6 8 > Record the entry for the expense on depreciation of equipment as per U.S.. GAAP. Note: Enter debits before credits Date General Journal Debit Credit 12/31/2018 HSL Journal entry worksheet N 3 4 5 6 7 AARAL > Record the entry for the expense on depreciation of equipment as per IFRS. Note: Enter debits before credits Date 12/31/2018 General Journal Debit Credit Required A Required B Prepare the entry(les) that Hirsch would make on the December 31, 2017, and December 31, 2018, conversion worksheets to convert U.S. GAAP balances to IFRS. Ignore the possibility of any additional impairment at the end of 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 Record the entry for the loss on impairment of equipment due to conversion from U.S. GAAP to IFRS. Note: Enter debits before credits Date General Journal Debit Credit 12/13/2017 Record entry Clear entry View general Journal Required A Required B Prepare the entry(ies) that Hirsch would make on the December 31, 2017, and December 31, 2018, convers U.S. GAAP balances to IFRS. Ignore the possibility of any additional impairment at the end of 2018. (If no en transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the entry for the loss on impairment of equipment due to conversion from U.S. GAAP to IFRS. Note: Enter debits before credits. Date General Journal 12/31/2018 Debit Credit Required A Required B Prepare the entry(ies) that Hirsch would make on the December 31, 2017, and December 31, 2018, conversio J.S. GAAP balances to IFRS. Ignore the possibility of any additional impairment at the end of 2018. (If no entr transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet
