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Kings Company purchased a building on January 1,2020 for $1,500,000 by taking out a 15 year mortgage at 3.5%. The building is expected to have
Kings Company purchased a building on January 1,2020 for $1,500,000 by taking out a 15 year mortgage at 3.5%. The building is expected to have a 20 year life and no residual value. On December 31, 2020 the building was appraised at $1,450,000. On December 31, 2021 because of falling prices, the building was appraised at $1,300,000. Kings accounts for its property, plant and equipment using the revaluation model (i.e. Elimination Method). Required 1 of 5 : Record the purchase of the building by SELECTING FROM THE DROP-DOWN MENU. ALSO, record the dollar amount in the input box provided. DO NOT INCLUDE A DOLLAR (\$) SIGN OR A COMMA (,). ROUND TO THE NEAREST DOLLAR. EG. 10000 Jan 1/20 Required 2 of 5: Record the annual depreciation by SELECTING FROM THE DROP-DOWN MENU. ALSO, record the dollar amount in the input box provided. DO NOT INCLUDE A DOLLAR (\$) SIGN OR A COMMA (,). ROUND TO THE NEAREST DOLLAR. EG. 10000 Dec 31/20 Required 3 of 5: 2020 is the year to revaluate the building to its appraised value. Recall in class, we performed TWO separate journal entries. The first entry was to record a reversal / closing-type entry and the second entry was the revaluation entry. Based on how these entries were presented in class, prepare the TWO separate journal entries to revaluate the building to its appraised value by SELECTING FROM THE DROP-DOWN MENU. ALSO, record the dollar amount in the input box provided. DO NOT INCLUDE A DOLLAR (\$) SIGN OR A COMMA (,). ROUND TO THE NEAREST DOLLAR. EG. 10000 Dec 31/20 xxxxxxxx Reversal / Closing type entry Required 4 of 5: Record the annual depreciation DOLLAR AMOUNT for 2021 of the building by inputting the amount in the box provided. DO NOT INCLUDE A DOLLAR (\$) SIGN OR A COMMA (,). ROUND TO THE NEAREST DOLLAR. EG. 10000 Dec 31/21 Depreciation Amount for 2021 Required 5 of 5: 2021 is the year to revaluate the building to its appraised value. Recall in class, we performed TWO separate journal entries. The first entry was to record a reversal / closing-type entry and the second entry was the revaluation entry. Based on how these entries were presented in class, prepare the SECOND journal entry to revaluate the building to its appraised value by SELECTING FROM THE DROP-DOWN MENU. ALSO, record the dollar amount in the input box provided. DO NOT INCLUDE A DOLLAR (\$) SIGN OR A COMMA (,). ROUND TO THE NEAREST DOLLAR. EG. 10000
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