Hello Ltd has two departments, each regarded as a separate CGU. The carrying amounts of the...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Hello Ltd has two departments, each regarded as a separate CGU. The carrying amounts of the assets within each department at 30 June 2022 are as follows: Cash Accounts receivable (net) Inventories Equipment Accumulated depreciation - equipment Vehicles Accumulated depreciation - vehicles Building Accumulated depreciation - building Patent Goodwill Welcome Department 14,000 44,000 68,000 180,000 (70,000) 60,000 (20,000) 80,000 20,000 Thanks Department 20,000 22,000 82,000 160,000 (100,000) 240,000 (40,000) 20,000 Hello Ltd determined that the assets of the company may be impaired and calculated the recoverable amounts for each CGU on 30 June 2022 as: $320,000 for Welcome Department; and, $395,000 for Thanks Department. Required: Prepare the journal entries to record any impairment loss for each department at 30 June 2022. Show all calculations. Hello Ltd has two departments, each regarded as a separate CGU. The carrying amounts of the assets within each department at 30 June 2022 are as follows: Cash Accounts receivable (net) Inventories Equipment Accumulated depreciation - equipment Vehicles Accumulated depreciation - vehicles Building Accumulated depreciation - building Patent Goodwill Welcome Department 14,000 44,000 68,000 180,000 (70,000) 60,000 (20,000) 80,000 20,000 Thanks Department 20,000 22,000 82,000 160,000 (100,000) 240,000 (40,000) 20,000 Hello Ltd determined that the assets of the company may be impaired and calculated the recoverable amounts for each CGU on 30 June 2022 as: $320,000 for Welcome Department; and, $395,000 for Thanks Department. Required: Prepare the journal entries to record any impairment loss for each department at 30 June 2022. Show all calculations.
Expert Answer:
Answer rating: 100% (QA)
To calculate the impairment loss and prepare the journal entries we need to co... View the full answer
Related Book For
Advanced Financial Accounting
ISBN: 978-0078025624
10th edition
Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker
Posted Date:
Students also viewed these accounting questions
-
Both Montreal Ltd. and Quebec Inc. produce a subcomponent that you incorporate into your primary product. Montreal has indicated that, for large volume orders in excess of 5,000 units, it is willing...
-
China Petroleum and Chemical Corporation China Petroleum and Chemical Corporation (CPCC) is one of a growing number of Chinese companies that has cross-listed its stock on foreign stock exchanges. To...
-
Read the information below and answer the questions that follow. INFORMATION You deposit R10 000 in a bank account which is paying 4.8% per year, interest compounded annually. REQUIRED 1.2.1 How much...
-
Review Questions: 1. What is the theory on which Rockwell hardness testing is based? 2. What is the purpose of the minor load in Rockwell hardness testing? 3. What are the advantages of the Rockwell...
-
Describe the equipotential surfaces for (a) An infinite line of charge and (b) A uniformly charged sphere.
-
Figure shows two non-conducting spherical shells fixed in place. Shell 1 has uniform surface charge density + 6.0?C/m 2 on its outer surface and radius 3.0 cm; shell 2 has uniform surface charge...
-
If division managers cannot agree among themselves on a transfer price when using the negotiated price approach, how is the transfer price established?
-
Why are ratios and trends used in financial analysis?
-
The Costmore Company uses standard costing and has established the following standards for direct materials and direct labor for each unit it makes: Direct Materials 3 gallons at $5 per gallon Direct...
-
Use discriminant analysis to classify the new data in the Excel file Credit Approval Decisions Coded using only credit score and years of credit history as input variables.
-
Compare and contrast the challenges of budgeting in public and private sector organisations, drawing analogies between the two types of organisations and referring to different sorts of budget...
-
A 7 4 0 0 kg rocket blasts off vertically from the launch pad with a constant upward acceleration of 2 . 2 0 m / s 2 and feels no appreciable air resistance. When it has reached a height of 6 0 0 m ,...
-
Please fill out the following sheet: Our decade: 1940s Specific events/themes we're considering : Executive Order 9981 Date(s) Event(s) Theme(s) 1857 Dred Scott v. Sandford Black citizenship Specific...
-
How do social identity theory and group cohesion models elucidate the intricate dynamics of team formation and development, including the emergence of shared norms, groupthink phenomena, and the role...
-
The elementary liquid-phase reaction: A + B C is to be carried out in a CSTR with three impellers. The mixing pattern in the CSTR (non- ideal) is such that the reactor is modeled as three equal-sized...
-
The accounts in the ledger of Monroe Entertainment Co. are listed below. All accounts have normal balances. $450 Fees Earned Accounts Payable $2,930 Accounts Receivable 711 Insurance Expense 521...
-
The goal of maneuver warfare is to: Generate and exploit an advantage over the enemy Support indirect fires with mobile direct fires to gain tactical advantage. Transport warfighting assets to their...
-
Prove that if Σ an is absolutely convergent, then a. an
-
Mountain View City is preparing its government-wide financial statements for the year. As of the year-end, the city has determined the following information for its capital assets, exclusive of its...
-
Atwater Health Services, a voluntary health and welfare organization, has provided support for families with low income in the town of Atwater for approximately 20 years. In 20X6, it conducted a...
-
C. Eastwood, A. North, and M. West are manufacturers representatives in the architecture business. Their capital accounts in the ENW partnership for 20X1 were as follows: Required For each of the...
-
Describe how a blockchain works.
-
In what ways can management empower employees? What are the advantages of empowering employees?
-
Application of data analytics Indicate which type of data analytics, 1 through 4, is described in each of the following statements describing a data analytics application, \(a\) through \(h\). Data...
Study smarter with the SolutionInn App