At 31 March 2018, Dextor Ltd provided you with information regarding two of their property, plant and
Question:
At 31 March 2018, Dextor Ltd provided you with information regarding two of their property, plant and equipment (PPE) items:
If applicable, in the journal entries below for both 'A' and 'B', provide details of where the revaluation gain/loss will be shown in the Comprehensive Income Statement and which equity account the gain/loss will be closed off to i.e. P or IJREs or OCl/ARS.
Required:
In relation to PPE item 'A':
(i) At 31 March 2016, Dextor Ltd changed to the revaluation model for this item, and a revaluation gain of $11 200 was recognized. Prepare the journal entries at 31 March 2016 to record the first revaluation for PPE item 'A'. Show all your workings within the journal entries. (ii) At 31 March 2018 the PPE item 'A' was to be revalued to its FV of $45 000. Prepare the necessary journal entries at 31 March 2018 to record the second revaluation. Show all your workings within the journal entries.
(iii) Prepare extracts from the financial statements for Dexter Ltd in relation to PPE item ?A' for the years ended 31 March 2015, 2016, 2017 and 2018. (iv) The PPE item ?A? is sold for $40 000 cash on 31 December 2018. Prepare the necessary journal entries to record the disposal.
Required in relation to PPR item ?B?:
(i) At 31 March 2016 Dcxtor Ltd changed to the revaluation model for this item. The PPE item ?B' was revalued to its FV $30 000. Prepare the journal entries at 31 March 2016 to record the first revaluation. Show all your workings within the journal entries.
(ii) At 31 March 2018 the PPF. item ?B? was to be revalued to its FV of $26 000. Prepare the necessary journal entries at 31 March 2018 to record the second revaluation for this PPE item ?B?. Show all your workings within the journal entries.
(iii) Assume Dcxtor Ltd uses the cost model for PPE item ?B? and the item is not impaired for the purposes of Question 3. Show extracts from the financial statements for Dcxtor Ltd in relation to PPE item ?B? for the years ended 31 March 2015. 2016. 2017 and 2018.
Advanced Financial Accounting
ISBN: 978-0137030385
6th edition
Authors: Thomas Beechy, Umashanker Trivedi, Kenneth MacAulay