QUESTION 3 IMPAIRMENT OF THE ASSETS (15 MARKS) XYZ Ltd is an entity that specialises in the manufacture of sports shoes The company reported the following assets in its statement of financial position at 30 June 2020, the entire company would be considered as a single cash generating unit Cash$300 000 Inventory200 000 Factory Building700 000 Accumulated depreciation factory(300 000) Machinery600 000 Accumulated depreciation machinery(300 000) Land300 000 Goodwill30 000 $1 530 000 Because of the competition from overseas as customers pursue a strategy of buying online rather than visit XYZ Ltd's stores, XYZ Ltd assessed its impairment position at 30 June 2020 The indicators suggested that an impairment loss was probable XYZ Ltd calculated a recoverable amount of its company of $1400000 Required Prepare the journal entry(ies) for any impairment loss occurring at 30 June 2020 (Show all your workings) Please show your calculations Please provide your journal entries in the following table DATE ACCOUNT NAME DR ($) CR ($) QUESTION 3 IMPAIRMENT OF THE ASSETS (15 MARKS) XYZ Lid is an entity that specialises in the manufacture of sports shoes The company reported the following assets in its statement of financial position at 30 June 2020, the entire company would be considered as a single cash generating unit Cash $300 000 Inventory 200 000 Factory Building 700 000 Accumulated depreciation factory (300 000) Machinery 600 000 Accumulated depreciation machinery (300 000) Land 300 000 Goodwill 30 000 $1 530 000 Because of the competition from overseas as customers pursue a strategy of buying online rather than visit XYZ Ltd's stores, XYZ Lid assessed its impairment position at 30 June 2020 The indicators suggested that an impairment loss was probable XYZ Lid calculated a recov erable amount of its company of $1 400 000 Required Prepare the journal entry(ies) for any impairment loss occurring at 30 June 2020 (Show all your workings) Please show your calculations Please provide your journal entries in the following table DATE ACCOUNT NAME DR (3)

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QUESTION 3: IMPAIRMENT OF THE ASSETS (15 MARKS) XYZ Ltd is an entity that specialises in the manufacture of sports shoes. The company reported the

QUESTION 3: IMPAIRMENT OF THE ASSETS (15 MARKS)

XYZ Ltd is an entity that specialises in the manufacture of sports shoes. The company reported the following assets in its statement of financial position at 30 June 2020, the entire company would be considered as a single cash generating unit:

Cash$300 000

Inventory200 000

Factory Building700 000

Accumulated depreciation - factory(300 000)

Machinery600 000

Accumulated depreciation - machinery(300 000)

Land300 000

Goodwill30 000

$1 530 000

Because of the competition from overseas as customers pursue a strategy of buying online rather than visit XYZ Ltd's stores, XYZ Ltd assessed its impairment position at 30 June 2020. The indicators suggested that an impairment loss was probable. XYZ Ltd calculated a recoverable amount of its company of $1400000.

Required

Prepare the journal entry(ies) for any impairment loss occurring at 30 June 2020 (Show all your workings).

Please show your calculations:
Please provide your journal entries in the following table:

DATE

ACCOUNT NAME

DR ($)

CR ($)

QUESTION 3: IMPAIRMENT OF THE ASSETS (15 MARKS) XYZ Lid is an entity that specialises in the manufacture of sports shoes. The company reported the following assets in its statement of financial position at 30 June 2020, the entire company would be considered as a single cash generating unit: Cash $300 000 Inventory 200 000 Factory Building 700 000 Accumulated depreciation - factory (300 000) Machinery 600 000 Accumulated depreciation - machinery (300 000) Land 300 000 Goodwill 30 000 $1 530 000 Because of the competition from overseas as customers pursue a strategy of buying online rather than visit XYZ Ltd's stores, XYZ Lid assessed its impairment position at 30 June 2020. The indicators suggested that an impairment loss was probable. XYZ Lid calculated a recov- erable amount of its company of $1 400 000. Required Prepare the journal entry(ies) for any impairment loss occurring at 30 June 2020 (Show all your workings). Please show your calculations: Please provide your journal entries in the following table: DATE ACCOUNT NAME DR (3)