Tapabo SA de CV acquired a new piece of manufacturing equipment on January 1, 2016. for a cash price of 500,000 pesos. The equipment was expected to have a useful life of 10 years and no residual value and is being depreciated on a straight line best. On January 1 2017 the equipment was appraised and determined to have a fair value of 540,000 pesos, zero salvage value anda romaning useful life of 9 years Topatio uses the revolution modelin IAS 16 to measure equipment subsequent to acquisition Any evaluation surplus will be recycled to retained earnings when the equipment is disposed of Asume that a foreign comparvy using IFRS owned by a company using US GAAP. Thus, IFRS balances must be converted to us GAAP to prepare consolidated financial statements. Ignore income taxes Required: Prepare foumalates for this equipment for the years ending December 31, 2017 and December 31 2018. under FRS and (2) US GAAP b. Prepare the entry that the US parent would make on the December 31, 2017 and December 31, 2018. conversion worksheets to convert FRS balances to US GAAP Required a Required B Prepare journal entries for this equipment for the years ending December 31, 2017, and December 31, 2018, under (1) IFRS and (2) U.S. GAAP. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.). General Journal Debit 01/01/2017 Accumulated depreciation - Equipment Equipment No Date Credit 1 2 12/31/2017 No journal entry required > 3 12/31/2017 Depreciation expense Accumulated depreciation - Equipment 4 12/31/2017 Depreciation expense Accumulated depreciation - Equipment 5 12/31/2018 Depreciation expense Accumulated depreciation Equipment OO 8 12/31/2018 Depreciation expense Accumulated depreciation Equipment Os Tapabo SA de CV acquired a new piece of manufacturing equipment on January 1, 2016. for a cash price of 500,000 pesos. The equipment was expected to have a useful life of 10 years and no residual value and is being depreciated on a straight line best. On January 1 2017 the equipment was appraised and determined to have a fair value of 540,000 pesos, zero salvage value anda romaning useful life of 9 years Topatio uses the revolution modelin IAS 16 to measure equipment subsequent to acquisition Any evaluation surplus will be recycled to retained earnings when the equipment is disposed of Asume that a foreign comparvy using IFRS owned by a company using US GAAP. Thus, IFRS balances must be converted to us GAAP to prepare consolidated financial statements. Ignore income taxes Required: Prepare foumalates for this equipment for the years ending December 31, 2017 and December 31 2018. under FRS and (2) US GAAP b. Prepare the entry that the US parent would make on the December 31, 2017 and December 31, 2018. conversion worksheets to convert FRS balances to US GAAP Required a Required B Prepare journal entries for this equipment for the years ending December 31, 2017, and December 31, 2018, under (1) IFRS and (2) U.S. GAAP. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.). General Journal Debit 01/01/2017 Accumulated depreciation - Equipment Equipment No Date Credit 1 2 12/31/2017 No journal entry required > 3 12/31/2017 Depreciation expense Accumulated depreciation - Equipment 4 12/31/2017 Depreciation expense Accumulated depreciation - Equipment 5 12/31/2018 Depreciation expense Accumulated depreciation Equipment OO 8 12/31/2018 Depreciation expense Accumulated depreciation Equipment Os
