You are provided the financial information and statements below for the year ended 31 March 2021 for Joyful Ltd.

Using the template provided below, indicate for each of the statements whether it is True (T) or False (F). If the statement is false, rewrite the statement to make it true, otherwise leave it blank.

Financial Information: During the year, Joyful Ltd disposed some computers for $1,100 cash. The disposed computers have a cost of $2,000 and accumulated depreciation of $500.     Statement: Therefore, the related journal entries for the disposal of computers are: Dr Accumulated depreciation                 $500     Cr    Computers - cost                                        $500   Dr Computers - cost                                  $1,500     Cr          Cash                                                         $1,100     Cr           Gain on sale                                               $400

T or F

Rewrite statement:

 

 

Financial Information: On 1 April 2019, Joyful Ltd purchased a piece of land for $500,000. On 31 March 2020, the land was revalued to $600,000. At the end of this financial year (31 March 2021), the land value has gone up again and was revalued to $900,000. Statement: Therefore, on 31 March 2021, the disclosure on financial statements related to the land is below: Balance Sheet: Asset - Land $900,000 Equity - Asset revaluation reserve (ARR):  $400,000 Statement of Other comprehensive income: increase on ARR - OCI account: $400,000

Rewrite statement:

 

Financial Information: During the year, Joyful Ltd spent $200,000 cash for developing a project and recognised this amount as a development asset on balance date. Statement: Therefore, on 31 March 2021, the Balance Sheet has an asset “Development asset” with a carrying amount of $200,000.
Rewrite statement: