Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Builders Ltd purchased a block of land on 1 January 2018 for $50,000. On 1 January 2019, Builders Ltd hire an independent valuer to conduct

Builders Ltd purchased a block of land on 1 January 2018 for $50,000. On 1 January 2019, Builders Ltd hire an independent valuer to conduct the revaluation of land. The valuer assessed the value of land to its fair value at $100,000.The land was revalued again on 1 January 2020 and due to the COVID-19 pandemic environment the fair value of land decreased to $80,000.

Note: Ignore income tax effect.

Required:

Prepare the journal entries required to record the purchase of land on 1 January 2018 and the revaluation adjustment for the year ended 30 June 2019 and 30 June 2020.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Forensic Accounting And Fraud Examination

Authors: Paul Barnes

1st Edition

1118454138, 978-1118454152

More Books

Students also viewed these Accounting questions

Question

=+a) What kind of study was this?

Answered: 1 week ago

Question

1. What will happen in the future

Answered: 1 week ago

Question

3. Avoid making mistakes when reaching our goals

Answered: 1 week ago