Question 2

You are working as an accountant for Hobart Winery Ltd. On 30 June 2020, the statement of financial position of Hobart Winery Ltd. showed the following non-current assets after charging depreciation.

	$
Building	400 000
Accumulated depreciation	(100000)
Motor vehicle	120,000
Accumulated depreciation	(40,000)

The company has adopted fair value for the valuation of non-current assets. This has resulted in the recognition in previous periods of an asset revaluation surplus for the building of $14 000. On 30 June 2020, an independent valuer assessed the fair value of the building to be $260 000 and the vehicle to be $100 000.

Required

Prepare general journal entries to revalue the building and the vehicle as at 30 June 2020 (ignore the tax effects). [13 marks]

Round to the nearest dollar and round percentages to 2 decimal places.