Question
Sea shores is a property investment company that focuses on buying land and buildings for purposes for rental and resale purposes. THe company currently own
Sea shores is a property investment company that focuses on buying land and buildings for purposes for rental and resale purposes. THe company currently own the following land and buildings.
| Use | Purchase Date | Depreciation | Cost | Model | Fair Value on 31 Dec 202 | |
| Braamfontein land | Rented to local Municipality | 30 June 2019 | 10 000 000 | Fair Value | 14 000 000 | |
| Umhlanga Building | Constists of 50 apartments ,30 apartments rented out to tenants | 01 May 2020 | 20% on cost | 20 000 000 | Cost | 25 000 000 |
| Richards bay Building | Will be sold on appreciation of the value | 30 April 2020 | ? | 8 400 000 | Cost | 8 400 000 |
| Richards bay land | Occupied by sea shores | 1 January 2020 | 20% on cost | 12 000 000 | Cost | 10 000 000 |
| Pretoria Building | Rented to tenants | 1 February 2019 | 8 000 000 | Fair Value | 10 545 800 |
Required
Prepare all necessary journal entry for the year ended 31 December 2020
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Principles Of International Auditing And Assurance
Authors: Rick Hayes, Philip Wallage, Peter Eimers
4th Edition
9463720065, 978-9463720069
