gst is 15

Assignment Nine Problem One (5 points): Ma Ltd is a GST registered company with an annual accounting period ending on 30 June 2018. It measures its investment property and all PP & E except equipment at fair value a) On 1 July 2016, the investment property's balance in the general ledger was $900,000 On 1 July 2017, its balance in the general ledger was $850,000. At the end of June 2018, the investment property was appraised at $1,200,000 Required: Prepare the 30 June 2018 journal entry to revalue the investment property. If you recognise a gain or a loss, make sure to include the term "OCI" if you conclude that the gain or loss should be other comprehensive income b) On 1 July 2017, the general ledger balance for Building, classified as PP & E, was $2,100,000 for Accumulated Depreciation, Building was $0, and for Revaluation Reserve, Building was $230,000. The building will be depreciated under the straight-line method for another 40 years, assuming no residual value, and counting forward from 1 July 2017. On 30 June 2018, after annual depreciation had been recorded and posted, an appraisal produced a fair value estimate for the building of $2,000,000. Ma Ltd's general ledger also includes the following accounts: Gain/Loss Revaluation, Building and OCI Gain/Loss, Revaluation Building Required: Prepare the journal entry to revalue the building on 30 June 2018 ) After last year's revaluation, Land had a balance of $1,500,000 and the Land Revaluation Reserve account had a $300,000 normal balance. On 30 June 2018, the land was appraised at $1,100,000. Ma Ltd's general ledger also includes the following accounts: Gain/Loss Revaluation, Land and OCI PreviOUS Neyt Required: Prepare the journal entry to revalue the building on 30 June 2018 c) After last year's revaluation, Land had a balance of $1,500,000 and the Land Revaluation Reserve account had a $300,000 normal balance. On 30 June 2018, the land was appraised at $1,100,000. Ma Ltd's general ledger also includes the following accounts: Gain/Loss Revaluation Land and OCI Gain/Loss, Revaluation Land Required Prepare the journal entry to revalue the land on 30 June 2018 d) Ignore GST. Equipment with a cost of $26,000 and accumulated depreciation to the date of the exchange of $19,000 was exchanged for new equipment with a list price of $35,000. A trade- in allowance of $9,000 was allowed on the old equipment, and the balance was paid in cash Ma Ltd's bookkeeper journalised the transaction as follows: 33,000 19,000 26,000 26,000 Equipment Accumulated Depreciation Equipment Cash Required Prepare the correcting (not the correct) journal entry, if one is required e) Ma Ltd incurred the following expenditures related to research and development that led to a software product: development charges prior to producing a prototype--$8,000; development charges after achieving technical feasibility but prior to sale of the software--$7,000; marketing costs after the software was ready for sale--$2,000. If capitalised, software expenditures are considered a intangible asset. Ma Ltd's bookkeeper debited R & D Expense for the entire $29,000. The credits were journalised research--$12,000; 3:50 4 Search [1.