FREE Trial

AL Limited is a well-established producer of Bluetooth earphones. On 1 January 2018, a machine was purchased for $150,000...

This problem has been solved!
Do you need an answer to a question different from the above? Ask your question!

Question:

Transcribed Image Text:

AL Limited is a well-established producer of Bluetooth earphones. On 1 January 2018, a machine was purchased for $150,000 with a useful life of 12 years. Depreciation was calculated on a straight-line basis. The machine was revalued to $220,000 as at 31 December 2018 and further revalued to $174,000 as at 31 December 2019. Due to change in the economic situations and technological advancement, the fair value of the machine was decreased to $52,000 as at 31 December 2020. Required: (a) Prepare the journal entries for the transactions and events happened from 2018 to 2020 for AL Limited. (b) Prepare the extract of statement of profit or loss and other comprehensive income for the years ended 31 December 2018, 2019 and 2020 for AL Limited. (c) Calculate the balances of the Revaluation Surplus to be presented in the statement of financial position as at 31 December 2018, 2019 and 2020.

Expert Answer:

Answer rating: 100% (QA)

a Journal Entries 2018 1 Revaluation of Machine Debit Machine Increase in Fair Value 70 000 Credit R View the full answer


answer-question
Related Book For  answer-question
Financial Accounting and Reporting a Global Perspective

Financial Accounting and Reporting a Global Perspective

ISBN: 978-1408076866

4th edition

Authors: Michel Lebas, Herve Stolowy, Yuan Ding

See More Books
View Solution
Create a free account to access the answer
Cannot find your solution?
Post a FREE question now and get an answer within minutes. * Average response time.
Posted Date: August 31, 2023 00:53:48
See More Questions

Students also viewed these accounting questions

Q:
What are the common myths about C4 plants?
A:
The detailed answer for the above question is provided below C4 plants are a group of plants that ha......
Q:
Here is the trial balance of Angelas Antiques, a furniture dealer. Angela Boshoff determines inventory values on a LIFO basis using the periodic method. Her marketing policy has been to consistently...
A:
Click to View...
Q:
In Exercises 1318, find the average rate of change of the function from x 1 to x 2 . f(x)=x from x = 4 to x = 9
A:
9 4......
Q:
Gibson Motors manufactures specialty tractors. It has two divisions: a Tractor Division and a Tire Division. The Tractor Division can use the tires produced by the Tire Division. The market price per...
A:
Req 1 Lowest Variable cost of 18 17 1 High......
Q:
Continue or discontinue a segment? The segmented income statement for XYZ Company for the year ended December 31, 2013, follows: The company is concerned about the performance of product A, and you...
A:
a Loss of contribution margin 600 000 Less direct fixed expenses 296 000 Decrease in operating income 304 000 Operating income will decrease by 304 00......
Q:
What are the key differences between financial accounting and management accounting?
A:
Financial Accounting and Management Accounting are two distinct branches of accounting with different objectives users and focus Here are the key differences between the two 1 Objectives Financial Acc......
Q:
Dollar Saver Center began operations on July 1. It uses a perpetual inventory system. During July, the company had the following purchases and sales. Instructions(a) Determine the ending inventory...
A:
a 1 FIFO 2 Moving Average Date Purchases Cost of goods......
Q:
Francine and Henry have been divorced for over two years and continue to be in high conflict as neither trusts the others and their discourse inevitably turns volatile. While at the neighborhood pub...
A:
i In the given scenario as a family mediator the re......
Q:
Right Company purchased 25,000 common shares (25%) of ON Inc. on January 1, Year 11, for $250,000. Right uses the equity method to report its investment in ON because it has significant influence in...
A:
a in 000s b Notes Investment written down to recoverable......
Q:
Define Netflix's competitive advantage.Why is Netflix sosuccessful?
A:
Netflix s competitive advantage is its vast library of movies and TV shows that can be streamed at a......
Q:
Netflix is a B2B company that understands their customers and provide a service that sets the company apart from others. Netflix is a streaming service that offers a variety of television shows,...
A:
The segmentation bullet points you provided highlight different ways in which Netflix targets and understands its consumer base Here are some implicat......
Q:
Trade Deficits and J-Curve Adjustment Paths. Assume the United States has the following import/export volumes and prices. It undertakes a major "devaluation" of the dollar, say 18% on average against...
A:
To calculate the pre devaluation and post devaluation trade balance we ll follow these steps 1 Calculate......
Q:
Write down the Truth Table and draw the logic diagram for the function, f (A, B, C, D) = (A+B+C)(B+C+ D) (A + D)
A:
Click to View...
Q:
Develop a program to prompt the user to enter an employees name, the number of hours the employee has worked for the week and the employees hourly pay rate. The program must calculate and print the...
A:
Click to View...
Q:
Peaches Records and Tapes sells vintage music on vinyl and cassette tape as well as musical instruments. Charlie wants to start a band with DeeMac, and Dennis. They pool their money together and go...
A:
In the situation you described where Peaches Records and Tapes sold musical instruments to Charlie DeeMac and Dennis with a sign that clearly stated A......
Q:
A thin uniform rod is initially positioned in the vertical direction, with its lower end attached to a frictionless axis that is mounted on the floor. The rod has a length of 1.70m and is allowed to...
A:
Please c......
Q:
In 1995 Miguel purchased a home for $130,000. In 2000 he sold it for $170,000 and immediately purchased another one for $180,000, which he sold in 2007 for $235,000. How much taxable capital gain, if...
A:
It is assumed that the capital gain is equal to the difference between the sale price of the home......
Q:
CeWe Color Holding AG is a Germany-based photofinishing holding company. It provides retail customers with color prints and offers digital and Internet services. It divides its business activities...
A:
1 Goodwill Intangible assets Acquisition and production costs Balance on Jan 1 45 011 64 970 Change in group of consolidated companies 0 0 Currency tr......
Q:
=> Prepare a 15-minute oral presentation on the history of charts of accounts, with particular reference to the French chart of accounts (dating from 1942). => Prepare a 15-minute oral presentation...
A:
Prepare and give a 15 minute presentation on the history of charts of accounts with particular reference to the French chart of accounts dating from 1942 or the German Accounting Plan of 1927 or their......
Q:
Holmen (formerly MoDo), is a Swedish group manufacturing and selling newsprint and magazine paper as well as paperboard. Its financial statements are prepared in accordance with IFRS. The 2010 and...
A:
Changes in Equity Group SEKm Share capital Other contributed c......
Rental Property Profits A Financial Tool Kit For Landlords 2nd Edition - ISBN: 0814438539 - Free Book