Pronto Real Estate purchased a small warehouse in Winnipeg some years ago for $720,000. (The accompanying land was also purchased, but that information is not necessary for purposes of this question.) (Click the icon to view additional information.) Required Record the journal entries to reflect the changes in use and the sale of the property, assuming that the company uses the fair value model for investment property. For revaluations of PPE, use the elimination method. Requirement. Record the journal entries to reflect the changes in use and the sale of the property, assuming that the company uses the fair value model for investment property. For revaluations of PPE, use the elimination method. Begin by recording the transfer of the warehouse from investment property to PPE at the beginning of 2013. (Record debits first, then credits. Explanations are not required.) Date Accounts Debit Credit Jan 2013 Next, record the cancellation of the accumulated depreciation of the building and any revaluation reserve before the transfer from PPE to investment property at the beginning of 2015. Prepare the journal entry for these transactions. (Record debits first, then credits. Explanations are not required.) Accounts Debit Credit Jan 2015 Date Prepare the journal entry for the transfer of the warehouse building to investment property at the beginning of 2015. (Record debits first, then credits. Explanations are not required.) Date Accounts Debit Credit Jan 2015 - Data table The company rented out the warehouse to different companies and expected increases in the property value over time as well. At the beginning of 2013, having held the property for 10 years, the company decided to use the warehouse to store excess office equipment from its head office. At the beginning of 2015, Pronto concluded that it did not require the warehouse for storage purposes and began renting out the property again. The fair value estimate at this date was $480,000 For the December 31, 2012, year-end, the fair value of the warehouse was $500,000. At that time, the warehouse had a remaining useful life of 20 years, which is consistent with the estimated useful life at time of acquisition. The company uses the straight-line method to depreciate buildings, recording a full year of depreciation in the year of acquisition and none in the year of disposal. The company uses the cost model to account for PPE. In 2019, the company sold the building for proceeds of $440,000, which was also its appraised value at the end of 2018 Prepare the journal entry for the sale of the warehouse building in 2019. First record the cash received from the sale of building and the loss on sale of the investment property. (Record debits first, then credits. Explanations are not required.) Date Accounts Debit Credit Jan 2019 Now, prepare the journal entry for the revaluation reserve from the warehouse building in 2019. (Record debits first, then credits. Explanations are not required.) Accounts Debit Credit Date Jan 2019 Pronto Real Estate purchased a small warehouse in Winnipeg some years ago for $720,000. (The accompanying land was also purchased, but that information is not necessary for purposes of this question.) (Click the icon to view additional information.) Required Record the journal entries to reflect the changes in use and the sale of the property, assuming that the company uses the fair value model for investment property. For revaluations of PPE, use the elimination method. Requirement. Record the journal entries to reflect the changes in use and the sale of the property, assuming that the company uses the fair value model for investment property. For revaluations of PPE, use the elimination method. Begin by recording the transfer of the warehouse from investment property to PPE at the beginning of 2013. (Record debits first, then credits. Explanations are not required.) Date Accounts Debit Credit Jan 2013 Next, record the cancellation of the accumulated depreciation of the building and any revaluation reserve before the transfer from PPE to investment property at the beginning of 2015. Prepare the journal entry for these transactions. (Record debits first, then credits. Explanations are not required.) Accounts Debit Credit Jan 2015 Date Prepare the journal entry for the transfer of the warehouse building to investment property at the beginning of 2015. (Record debits first, then credits. Explanations are not required.) Date Accounts Debit Credit Jan 2015 - Data table The company rented out the warehouse to different companies and expected increases in the property value over time as well. At the beginning of 2013, having held the property for 10 years, the company decided to use the warehouse to store excess office equipment from its head office. At the beginning of 2015, Pronto concluded that it did not require the warehouse for storage purposes and began renting out the property again. The fair value estimate at this date was $480,000 For the December 31, 2012, year-end, the fair value of the warehouse was $500,000. At that time, the warehouse had a remaining useful life of 20 years, which is consistent with the estimated useful life at time of acquisition. The company uses the straight-line method to depreciate buildings, recording a full year of depreciation in the year of acquisition and none in the year of disposal. The company uses the cost model to account for PPE. In 2019, the company sold the building for proceeds of $440,000, which was also its appraised value at the end of 2018 Prepare the journal entry for the sale of the warehouse building in 2019. First record the cash received from the sale of building and the loss on sale of the investment property. (Record debits first, then credits. Explanations are not required.) Date Accounts Debit Credit Jan 2019 Now, prepare the journal entry for the revaluation reserve from the warehouse building in 2019. (Record debits first, then credits. Explanations are not required.) Accounts Debit Credit Date Jan 2019