14 (14%) HBC Group uses revaluation accounting for a class of equipment it uses in its...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
14 (14%) HBC Group uses revaluation accounting for a class of equipment it uses in its golf club refurbishing business. The equipment was purchased on January 2, 2020, for $500,000; it has a 10-year useful life with no residual value. HBC has the following information related to the equipment. (Assume that estimated useful life and residual value does not change during the periods presented below.) Date January 2, 2020 Fair Value $500,000 December 31, 2021 468,000 December 31, 2023 281,000 Instructions: a. Prepare the entries for any revaluation adjustments at December 31, 2021. b. Determine the amounts to be reported by HBC's financial statement at December 31, 2022, as Equipment, Accumulated Depreciation, Depreciation Expense, and Accumulated Other Comprehensive Income. c. Prepare the entry for any revaluation adjustments at December 31, 2023. d. Prepare the entries for the sale of the equipment by HBC on January 2, 2024, for $270,000. 14 (14%) HBC Group uses revaluation accounting for a class of equipment it uses in its golf club refurbishing business. The equipment was purchased on January 2, 2020, for $500,000; it has a 10-year useful life with no residual value. HBC has the following information related to the equipment. (Assume that estimated useful life and residual value does not change during the periods presented below.) Date January 2, 2020 Fair Value $500,000 December 31, 2021 468,000 December 31, 2023 281,000 Instructions: a. Prepare the entries for any revaluation adjustments at December 31, 2021. b. Determine the amounts to be reported by HBC's financial statement at December 31, 2022, as Equipment, Accumulated Depreciation, Depreciation Expense, and Accumulated Other Comprehensive Income. c. Prepare the entry for any revaluation adjustments at December 31, 2023. d. Prepare the entries for the sale of the equipment by HBC on January 2, 2024, for $270,000.
Expert Answer:
Answer rating: 100% (QA)
a Revaluation changes at December 31 2021 Fair worth reduction 500000 468000 32000 Passage to record ... View the full answer
Related Book For
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Posted Date:
Students also viewed these accounting questions
-
Parnevik Group uses revaluation accounting for a class of equipment it uses in its golf club refurbishing business. The equipment was purchased on January 2, 2022, for 500,000; it has a 10-year...
-
Parnevik Group uses revaluation accounting for a class of equipment it uses in its golf club refurbishing business. The equipment was purchased on January 2, 2019, for 500,000; it has a 10-year...
-
Arvind runs a small electronics company in India and has just sold some equipment to a U.S. company for $1 million to be paid in 90 days. His cost in Indian Rupees (INR) is 60 million. The current...
-
In its first year of operations, Gomes Company recognized $28,000 in service revenue. $6,000 of which was on account and still outstanding at year-end. The remaining $22,000 was received in cash...
-
Launching a Health and Fitness App **Background:** "FitWell," a new health and fitness app, is set to enter the competitive market. The app offers personalized workout plans, nutritional guidance,...
-
The codon change (Gly-12 to Val-12) in human H-ras that converts it to oncogenic H-ras has been associated with many types of cancers. For this reason, researchers would like to develop drugs to...
-
Cook Company estimates that 360,000 direct labor hours will be worked during the coming year, 2012, in the Packaging Department. On this basis, the budgeted manufacturing overhead cost data, shown on...
-
6. For the following code fragment, what are the values of the array elements after the statements are executed? int[] T = {2, 2, 2, 3, 3, 3}; for (int i = 1; i < T.length; i++) { T[i] = (T[i-1] +...
-
One canister of butane (a fuel) provides 695 kJ of energy when it is burned. How many cups of water at 100.0C can you convert to steam at 100.0C using one canister of butane? (Each cup of water is...
-
using the Peltzman Effect and understanding of opportunity costs determine which of two drivers is more likely to drive in a risky manner. Samantha drives a brand new 2022 Tesla with all of the...
-
This abuse could include insufficient funds to meet requirements. is this is finacial abuse
-
Which solution did the Farmers' Alliance movement of the late nineteenth century initially propose to solve farmers' economic problems?
-
Gender Corporation declared and issued a 6% stock dividend on December 1. Prior to the declaration, Gender's retained earnings were $36,000, shares outstanding were 12,100, $2 par value, common stock...
-
Statement 1: The debt to total assets ratio will go up if an equal amount of assets and liabilities are added to the balance sheet. Statement 2: Under IFRS, subsidiaries in which the parent company...
-
How does the price of a put option respond to the following changes, other things equal? Does the put price go up or down? a. Stock price increases. b. Exercise price is increased. c. Risk-free...
-
For the next several days, take notes on your listening performance during at least a half-dozen situations in class, during social activities, and at work, if applicable. Referring to the traits of...
-
Kipling plc deposits all receipts and makes all payments by check. The following information is available from the cash records. June 30 Bank Reconciliation Balance per...
-
What basic questions must be answered before the amount of the depreciation charge can be computed?
-
At the statement of financial position date, Clarkson Company held title to goods in transit amounting to $214,000. This amount was omitted from the purchases figure for the year and also from the...
-
To address his concern regarding the previous advisers asset allocation approach, Raye should assess the Laws portfolio using: A. a homogeneous and mutually exclusive asset classbased risk analysis....
-
Raye believes the previous advisers specification for debt is incorrect given that, for purposes of asset allocation, asset classes should be: A. diversifying. B. mutually exclusive. C. relatively...
-
Rayes approach to rebalancing global equities is consistent with: A. the Laws being risk averse. B. global equities having higher transaction costs than other asset classes. C. global equities having...
Study smarter with the SolutionInn App