Question
As at 1 July 2021 an entity has the following assets: Land $150 000 Equipment $ 100 000 Less Accumulated depreciation $25 000 75 000
As at 1 July 2021 an entity has the following assets:
Land $150 000
| Equipment | $ 100 000 |
|
| Less Accumulated depreciation | $25 000 | 75 000 |
|
|
| |
| Building | $260 000 |
|
| Less Accumulated depreciation | $90 000 | 170 000 |
On 1 July 2021 the entity decides to use the revaluation model and the entity discovers that the fair value of the land is $160,000, the fair value of the Equipment is $60,000 and the fair value of the Building is $175,000.
On the 30 June 2022, after charging depreciation for the year, the assets are recorded as follows:
| Land |
| $160 000 |
|
|
|
|
| Equipment | $ 60 000 |
|
| Less Accumulated depreciation | $5 000 | 55 000 |
|
|
|
|
| Building | $175 000 |
|
| Less Accumulated depreciation | $15 000 | 160 000 |
The entity discovers that the fair value of the land is $145,000, the fair value of the equipment is $75,000 and the fair value of the Building is $180,000.
Required: Record the journal entries to reflect these events.
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Public Sector Accounting And Budgeting For Non-Specialists
Authors: G. Jan Van Helden, Ron Hodges
1st Edition
1137376988, 9781137376985
