Accounting Problem (Question 6) Instructions Refer to Background png, Use that information to Complete Chapter 6 Part 1 png and Chapter 6 Part 2 png Use the List of Accounts Below List of Accounts Accounts Payable Accounts Receivable Accumulated Amortization Copyrights Accumulated Amortization Customer Lists Accumulated Amortization Customer Database Accumulated Amortization Development Costs Accumulated Amortization Franchises Accumulated Amortization Licences Accumulated Amortization Patents Accumulated Amortization Software Accumulated Amortization Trademarks Accumulated Depreciation Accumulated Impairment Losses Goodwill Accumulated Impairment Losses Licences Accumulated Impairment Losses Patents Accumulated Impairment Losses Trademark Accumulated Impairment Losses Trade Names Accumulated Impairment Losses Copyrights Administrative Expenses Advances to Employees Advertising Expense Allowance for Doubtful Accounts Amortization Expense Bad Debt Expense Bank Loans Buildings Cash Common Shares Copyright Cost of Goods Sold Customer Database Customer Lists Delivery Expense Depreciation Expense Development Costs Discount on Bonds Payable Due from Factor Due to Customer Equipment Fair Value NI Investments Finance Expense Finance Revenue Franchises Freight In Freight Out Gain on Disposal of Intangible Assets Gain on Sale of Equipment Gain on Sale of Land Goodwill Income Summary Intangible Assets Intangible Assets Copyrights Intangible Assets Customer List Intangible Assets Development Costs Intangible Assets Licences Intangible Assets Franchises Intangible Assets Patents Intangible Assets Software (Old) Intangible Assets Software (New) Intangible Assets Trademarks Intangible Assets Trade Names Interest Expense Interest Income Interest Receivable Inventory Land Leasehold Improvements Licences Licensing Agreement Loss on Disposal of Intangible Assets Loss on Impairment Loss on Impairment Goodwill Loss on Impairment Licences Loss on Impairment Trademarks Loss on Impairment Patents Loss on Sale of Copyright Loss on Sale of Receivables Machinery Maintenance and Repairs Expense Miscellaneous Expense No Entry Notes Payable Notes Receivable Office Expense Office Expense Bank Charges Operating Expenses Patents Petty Cash Prepaid Expenses Prepaid Rent Purchase Discounts Recovery of Loss from Impairment Rent Expense Research and Development Expense Resource Liability Retained Earnings Revaluation Gain or Loss Revaluation Surplus (OCI) Royalty Expense Sales Sales Discounts Sales Discounts Forfeited Sales Revenue Selling Expenses Servicing Liability Service Revenue Sick Pay Wages Payable Software Start up Expenses Supplies Supplies Expense Trademarks Trade Names Unearned Revenue Unrealized Gain or Loss FV NI Background Under ASPE, determine if there is any impairment and prepare any necessary entry on December 31, 2020 (Credit account titles are automatically indented when the amount is entered Do not indent manually If no entry is required, select No entry for the account titles and enter 0 for the amounts Enter amounts in millions ) Date Account Titles and Explanation Debit Credit Dec 31, 2020 On December 31, 2021, it is estimated that the reporting unit's fair value has increased to $418 million Under ASPE, prepare the journal entry, if any, to record the increase in fair value (Credit account titles are automatically indented when the amount is entered Do not indent manually If no entry is required, select No entry for the account titles and enter O for the amounts Enter amounts in millions ) Date Account Titles and Explanation Debit Credit Dec 31, 2021Under IFRS, determine if there is any impairment and prepare any necessary entry on December 31, 2020 (Credit account titles are automatically indented when the amount is entered Do not indent manually If no entry is required, select No entry for the account titles and enter 0 for the amounts Enter amounts in millions ) Date Account Titles and Explanation Debit Credit Dec 31, 2020 On December 31, 2021, it is estimated that the cash generating unit's fair value has increased to $418 million Under IFRS, prepare the journal entry, if any, to record the increase in fair value (Credit account titles are automatically indented when the amount is entered Do not indent manually If no entry is required, select No entry for the account titles and enter O for the amounts Enter amounts in millions ) Date Account Titles and Explanation Debit Credit Dec 31, 2021The following is net asset information for the Dhillon Division of Klaus Inc NET ASSETS as at December 31, 2020 (in millions) Fair Value Excluding Book Value Goodwill Cash $ 52 $ 52 Accounts receivable 225 225 Property, plant, and equipment (net) 2,649 2,811 Goodwill 200 Less Notes payable (2,645 (2,645 ) Net assets $ 481 The purpose of the Dhillon Division (also identified as a reporting unit or cash generating unit) is to develop a nuclear powered aircraft If successful, travelling delays that are associated with refuelling could be greatly reduced, and operational efficiency would increase significantly To date, management has not had much success and is deciding whether a writedown is appropriate at this time Management has prepared the following estimates for the reporting unit or cash generating unit 1 Undiscounted future net cash flows are approximately $418 million 2 Future value in use is approximately $478 million 3 Sale of the unit would yield $347 million and selling costs would total $8 million

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Accounting Problem (Question 6) Instructions Refer to Background.png, Use that information to Complete Chapter 6 Part 1.png and Chapter 6 Part 2.png. Use the List

Accounting Problem (Question 6)

Instructions

Refer to Background.png, Use that information to Complete Chapter 6 Part 1.png and Chapter 6 Part 2.png. Use the List of Accounts Below.

List of Accounts

Accounts Payable
Accounts Receivable
Accumulated Amortization - Copyrights
Accumulated Amortization - Customer Lists
Accumulated Amortization - Customer Database
Accumulated Amortization - Development Costs
Accumulated Amortization - Franchises
Accumulated Amortization - Licences
Accumulated Amortization - Patents
Accumulated Amortization - Software
Accumulated Amortization - Trademarks
Accumulated Depreciation
Accumulated Impairment Losses - Goodwill
Accumulated Impairment Losses - Licences
Accumulated Impairment Losses - Patents
Accumulated Impairment Losses - Trademark
Accumulated Impairment Losses - Trade Names
Accumulated Impairment Losses - Copyrights
Administrative Expenses
Advances to Employees
Advertising Expense
Allowance for Doubtful Accounts
Amortization Expense
Bad Debt Expense
Bank Loans
Buildings
Cash
Common Shares
Copyright
Cost of Goods Sold
Customer Database
Customer Lists
Delivery Expense
Depreciation Expense
Development Costs
Discount on Bonds Payable
Due from Factor
Due to Customer
Equipment
Fair Value - NI Investments
Finance Expense
Finance Revenue
Franchises
Freight-In
Freight-Out
Gain on Disposal of Intangible Assets
Gain on Sale of Equipment
Gain on Sale of Land
Goodwill
Income Summary
Intangible Assets
Intangible Assets-Copyrights
Intangible Assets-Customer List
Intangible Assets-Development Costs
Intangible Assets-Licences
Intangible Assets-Franchises
Intangible Assets-Patents
Intangible Assets-Software (Old)
Intangible Assets-Software (New)
Intangible Assets-Trademarks
Intangible Assets-Trade Names
Interest Expense
Interest Income
Interest Receivable
Inventory
Land
Leasehold Improvements
Licences
Licensing Agreement
Loss on Disposal of Intangible Assets
Loss on Impairment
Loss on Impairment - Goodwill
Loss on Impairment - Licences
Loss on Impairment - Trademarks
Loss on Impairment - Patents
Loss on Sale of Copyright
Loss on Sale of Receivables
Machinery
Maintenance and Repairs Expense
Miscellaneous Expense
No Entry
Notes Payable
Notes Receivable
Office Expense
Office Expense - Bank Charges
Operating Expenses
Patents
Petty Cash
Prepaid Expenses
Prepaid Rent
Purchase Discounts
Recovery of Loss from Impairment
Rent Expense
Research and Development Expense
Resource Liability
Retained Earnings
Revaluation Gain or Loss
Revaluation Surplus (OCI)
Royalty Expense
Sales
Sales Discounts
Sales Discounts Forfeited
Sales Revenue
Selling Expenses
Servicing Liability
Service Revenue
Sick Pay Wages Payable
Software
Start-up Expenses
Supplies
Supplies Expense
Trademarks
Trade Names
Unearned Revenue
Unrealized Gain or Loss - FV-NI

Background

Under ASPE, determine if there is any impairment and prepare any necessary entry on December 31, 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Enter amounts in millions.) Date Account Titles and Explanation Debit Credit Dec. 31, 2020 On December 31, 2021, it is estimated that the reporting unit's fair value has increased to $418 million. Under ASPE, prepare the journal entry, if any, to record the increase in fair value. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. Enter amounts in millions.) Date Account Titles and Explanation Debit Credit Dec. 31, 2021Under IFRS, determine if there is any impairment and prepare any necessary entry on December 31, 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Enter amounts in millions.) Date Account Titles and Explanation Debit Credit Dec. 31, 2020 On December 31, 2021, it is estimated that the cash-generating unit's fair value has increased to $418 million. Under IFRS, prepare the journal entry, if any, to record the increase in fair value. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. Enter amounts in millions.) Date Account Titles and Explanation Debit Credit Dec. 31, 2021The following is net asset information for the Dhillon Division of Klaus Inc.: NET ASSETS as at December 31, 2020 (in millions) Fair Value Excluding Book Value Goodwill Cash $ 52 $ 52 Accounts receivable 225 225 Property, plant, and equipment (net) 2,649 2,811 Goodwill 200 Less: Notes payable (2,645 (2,645 ) Net assets $ 481 The purpose of the Dhillon Division (also identified as a reporting unit or cash-generating unit) is to develop a nuclear-powered aircraft. If successful, travelling delays that are associated with refuelling could be greatly reduced, and operational efficiency would increase significantly. To date, management has not had much success and is deciding whether a writedown is appropriate at this time. Management has prepared the following estimates for the reporting unit or cash-generating unit: 1. Undiscounted future net cash flows are approximately $418 million. 2. Future value in use is approximately $478 million. 3. Sale of the unit would yield $347 million and selling costs would total $8 million