Required

Prepare the journal entries required at 30 June 2019 to account for any impairment losses.

Exercise 7.20 A large manufacturing company, St. George Ltd, has its operations in Newcastle. It has two cash-generating units, Red Unit and Dragon Unit. At 30 June 2019, the management of the company decided to conduct impairment testing. It calculated that the recoverable amounts of the two divisions were $1,243,900 (Red Unit) and $930,300 (Dragon Unit). In considering the assets of the cash-generating units the company allocated the assets of the corporate area equally to the units. The carrying amounts of the assets and liabilities of the two cash-generating units and the corporate assets at 30 June 2019 were as follows: Red Unit Dragon Unit Corporate Equipment $ 960,100 Accumulated depreciation (Equipment) (360,500) Land 269,900 $ 449,800 Buildings 330,200 419,800 $ 630,400 Accumulated depreciation (Buildings) (120,100) (180,400) (150,400) Furniture and fittings 90,100 Accumulated depreciation (Furniture and fittings) (30,100) Goodwill 42,000 Cash 36,300 24,100 Inventories 90,000 119,800 Receivables 60,400 23,800 Total assets 1,266,300 916,900 522,000 Provisions 59,600 120,200 Debentures 89,600 197,500 Total liabilities 149,200 317,700 Net assets $1,117,100 $ 599,200 In relation to these assets: . the receivables of both units were considered to be collectablein relation to these assets: . the receivables of both units were considered to be collectable . the land held by the Dragon Unit had a fair value less costs of disposal of $404,600. Required Prepare the journal entries required at 30 June 2019 to account for any impairment losses. ( Round your final answers to the nearest whole number. Enter debit entries first, followed by credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account and explanation Debit Credit (Recognition of impairment loss for corporate goodwill) (Recognition of impairment loss for corporate building) (Recognition of impairment loss for Red Unit)(Recognition of impairment loss for Red Unit) (Recognition of impairment loss for Dragon Unit)