Hi,

I am doing a T accounts for HRM732 Individual Assignment #1 in order to record the balances in the balance sheet. I am just concerned about two questions.

Q1: Their land was appraised and found to be worth $560,000 however original value is 490,000.

My answer is that assets must always be recorded at their historical cost regardless of the current perceived fair market value . Please advise if we record 560,000 under land account or we keep it 490,000.

Q2: Bottle Processing Patent Fees were paid completely out on Credit. Original records of bottle processing fees was 25,000 and once this amount is paid completely out on credit. Please advise how we can record this in T-Accounts.

Thank you

Rula