Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 4 of 4 - / 13 E View Policies Current Attempt in Progress A partial statement of financial position of Sheridan Ltd. on December

image text in transcribedimage text in transcribedimage text in transcribed

Question 4 of 4 - / 13 E View Policies Current Attempt in Progress A partial statement of financial position of Sheridan Ltd. on December 31, 2019, showed the following property, plant, and equipment assets accounted for under the cost model (accumulated depreciation includes depreciation for 2019): Buildings $325,000 Less: accumulated depreciation 125.000 $200,000 Equipment $131.000 Less: accumulated depreciation 51.000 80,000 Sheridan uses straight-line depreciation for its building (remaining useful life of 20 years, no residual value) and for its equipment (remaining useful life of 8 years, no residual value). Sheridan applies IFRS and has decided to adopt the revaluation model for its building and equipment, effective December 31, 2019. On this date, an independent appraiser assessed the fair value of the building to be $154.000 and that of the equipment to be $90,000. Prepare the necessary general journal entries, if any, to revalue the building and the equipment as at December 31, 2019, using the asset adjustment 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 Ofor the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31, 2019 (To eliminate the accumulated depreciation) Dec. 31, 2019 (To adjust the Buildings account to fair value) Dec. 31, 2019 (To eliminate the accumulated depreciation) Dec. 31, 2019 (To adjust the Equipment account to fair value) e Textbook and Media Prepare the entries to record depreciation expense for the year ended 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 for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31, 2020 (To record depreciation expense for Buildings) Dec. 31, 2020 (To record depreciation expense for Equipment) e Textbook and Media Prepare the necessary general journal entries, if any, to revalue the building and the equipment as at December 31, 2019, using 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 O decimal places, e.g. 5,275.) Date Account Titles and Explanation Debit Credit Dec. 31, 2019 (To record revaluation of the building) Dec. 31, 2019 (To adjust the Equipment account to fair value) e Textbook and Media Prepare the entries to record depreciation expense for the year ended December 31, 2020 using the proportionate method. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O 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, 2020 (To record depreciation expense for Buildings) Dec. 31, 2020 (To record depreciation expense for Equipment) e Textbook and Media

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting For Managers Interpreting Accounting Information For Decision Making

Authors: Paul M. Collier, Sandy M. Kizan, Eckhard Schumann

1st Canadian Edition

1118037960, 9781118037966

More Books

Students also viewed these Accounting questions