On January 1, 2020, Sandhill Ltd. acquires a building at a cost of $270,000. The building is expected to have a 20-year life and no residual value. The asset is accounted for under the revaluation model, using the asset adjustment method. Revaluations are carried out every three years. On December 31, 2022, the fair value of the building is appraised at $245,000, and on December 31, 2025, its fair value is $120,000. Sandhill Ltd. applies IFRS. Prepare the journal entry required on December 31, 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31, 2020 (To record depreciation expense) SHOW LIST OF ACCOUNTS Prepare the journal entry required on December 31, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Debit Credit Date Account Titles and Explanation Dec. 31, 2021 (To record depreciation expense) Prepare the journal entries required on December 31, 2022. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Debit Credit Date Account Titles and Explanation Dec. 31, 2022 (To record depreciation expense) Dec. 31, 2022 (To eliminate the accumulated depreciation) Dec. 31, 2022 (To adjust the Buildings account to fair value) Prepare the journal entry required on December 31, 2023. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Round answers to 0 decimal places, e.g. 5,275.) Date Account Titles and Explanation Debit Credit Dec. 31, 2023 SHOW LIST OF ACCOUNTS Prepare the journal entry required on December 31, 2024. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Round answers to 0 decimal places, e.g. 5,275.) Debit Credit Date Account Titles and Explanation Dec. 31, 2024 SHOW LIST OF ACCOUNTS Prepare the journal entries required on December 31, 2025. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Round answers to o decimal places, e.g. 5,275.) Debit Credit Date Account Titles and Explanation Dec. 31, 2025 (To record depreciation.) Dec. 31, 2025 (To eliminate the accumulated depreciation) Dec. 31, 2025 (To adjust the Buildings account to fair value) Prepare the journal entries required on December 31, 2022, and the journal entry required on December 31, 2025, to revalue the building, if Sandhill uses the proportionate method. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts. Do not round intermediate calculations. Round final answers to 0 decimal places, e.g. 5,275.) Date Account Titles and Explanation Debit Credit Dec. 31, 2022 Dec. 31, 2025 Prepare a continuity schedule showing the amounts recorded to the Buildings account and to the Accumulated Depreciation account, as well as indicating the carrying amount for each fiscal year from date of purchase to December 31, 2025, using (1) the asset adjustment method and (2) the proportionate method. Show the carrying amount under each method at the end of each fiscal year. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Revaluation Model - Asset Adjustment Method Accum. Carrying Buildings Depr. Amount $ Revaluation Model - Proportionate Method Accum. Carrying Buildings Depr. Amount $ $ Jan. 2, 2020 Depreciation Dec. 31, 2020 Depreciation Dec. 31, 2021 Depreciation Unadj. Dec. 2022 Reval. Adjustment Reval. Surplus (OCI) Dec. 31, 2022 Depreciation (17 yrs. rem.) Dec. 31, 2023 Depreciation Dec. 31, 2024 Depreciation Unadj. Dec. 2025 Reval. Adjustment Reval Gain or Loss Reval. Surplus (OCI) $ $ Dec. 31, 2025 On January 1, 2020, Sandhill Ltd. acquires a building at a cost of $270,000. The building is expected to have a 20-year life and no residual value. The asset is accounted for under the revaluation model, using the asset adjustment method. Revaluations are carried out every three years. On December 31, 2022, the fair value of the building is appraised at $245,000, and on December 31, 2025, its fair value is $120,000. Sandhill Ltd. applies IFRS. Prepare the journal entry required on December 31, 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31, 2020 (To record depreciation expense) SHOW LIST OF ACCOUNTS Prepare the journal entry required on December 31, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Debit Credit Date Account Titles and Explanation Dec. 31, 2021 (To record depreciation expense) Prepare the journal entries required on December 31, 2022. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Debit Credit Date Account Titles and Explanation Dec. 31, 2022 (To record depreciation expense) Dec. 31, 2022 (To eliminate the accumulated depreciation) Dec. 31, 2022 (To adjust the Buildings account to fair value) Prepare the journal entry required on December 31, 2023. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Round answers to 0 decimal places, e.g. 5,275.) Date Account Titles and Explanation Debit Credit Dec. 31, 2023 SHOW LIST OF ACCOUNTS Prepare the journal entry required on December 31, 2024. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Round answers to 0 decimal places, e.g. 5,275.) Debit Credit Date Account Titles and Explanation Dec. 31, 2024 SHOW LIST OF ACCOUNTS Prepare the journal entries required on December 31, 2025. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Round answers to o decimal places, e.g. 5,275.) Debit Credit Date Account Titles and Explanation Dec. 31, 2025 (To record depreciation.) Dec. 31, 2025 (To eliminate the accumulated depreciation) Dec. 31, 2025 (To adjust the Buildings account to fair value) Prepare the journal entries required on December 31, 2022, and the journal entry required on December 31, 2025, to revalue the building, if Sandhill uses the proportionate method. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts. Do not round intermediate calculations. Round final answers to 0 decimal places, e.g. 5,275.) Date Account Titles and Explanation Debit Credit Dec. 31, 2022 Dec. 31, 2025 Prepare a continuity schedule showing the amounts recorded to the Buildings account and to the Accumulated Depreciation account, as well as indicating the carrying amount for each fiscal year from date of purchase to December 31, 2025, using (1) the asset adjustment method and (2) the proportionate method. Show the carrying amount under each method at the end of each fiscal year. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Revaluation Model - Asset Adjustment Method Accum. Carrying Buildings Depr. Amount $ Revaluation Model - Proportionate Method Accum. Carrying Buildings Depr. Amount $ $ Jan. 2, 2020 Depreciation Dec. 31, 2020 Depreciation Dec. 31, 2021 Depreciation Unadj. Dec. 2022 Reval. Adjustment Reval. Surplus (OCI) Dec. 31, 2022 Depreciation (17 yrs. rem.) Dec. 31, 2023 Depreciation Dec. 31, 2024 Depreciation Unadj. Dec. 2025 Reval. Adjustment Reval Gain or Loss Reval. Surplus (OCI) $ $ Dec. 31, 2025
