Eds Market Company (EMC) grows and sells fresh fruits and vegetables. EMC is an IFRS reporter. EMC
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1. In February, the government acquired 20 acres from EMC in an eminent domain case. EMC was carrying the land on its balance sheet at $ 6,000. The government paid EMC $ 10,000. EMC purchased an additional 20 acres of land on the other side of its farm for $ 25,000 in June to compensate for this loss.
2. In July, a fire destroyed one of EMC’s barns. The barn had an original cost of $ 200,000 and accumulated depreciation of $ 120,000. EMC expected to receive $ 50,000 in insurance money. EMC received insurance proceeds of $ 50,000 in November.
3. In December, one of EMC’s tractors was stolen. The original cost of the tractor was $ 45,000 and the accumulated depreciation was $ 42,500. The tractor was insured, but as of December 31, it was not determined exactly how much the insurance company would pay EMC, although it is likely to be around $ 5,000.
Prepare a memo to the file using the international standards for support. Include any necessary journal entries in the conclusion section of the memo. Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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Related Book For
Intermediate Accounting
ISBN: 978-0132162302
1st edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
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