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

Step: 3

blur-text-image

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

Advanced Financial Accounting

Authors: Richard Baker, Valdean Lembke, Thomas King, Cynthia Jeffrey

8th Edition

73526916, 978-0073526911

More Books

Students also viewed these Accounting questions

Question

Annoyance about a statement that has been made by somebody

Answered: 1 week ago