Company XYZ acquired a machine on 1 January 20X0 at the cost of 8,500,000. The estimated...

 

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Company XYZ acquired a machine on 1 January 20X0 at the cost of 8,500,000. The estimated useful life of asset is 10 years with no residual value. Additional information are as follow: • Starting from 31 December 20X1, the Company has adopted revaluation model for its assets valuation. As at 31 December 20X1, FV of asset is 7,200,000 with no change in remaining useful life. As at 31 December 20X4, there are some indicators of asset impairment and the recoverable amount is 3,500,000. As at 31 December 20X5, recoverable amount is 4,600,000. Prepare journal entries to record asset revaluation at 31 December 20X1, using elimination method. Prepare journal entries to record depreciation expenses and surplus transfer to retained earnings for 20X2 and 20X3. Prepare journal entries to record impairment loss (if any) at 31 December 20X4. Prepare journal entries to record reversal of impairment loss (if any) and revaluation of assets at 31 December 20X5. b) d) . . . Company XYZ acquired a machine on 1 January 20X0 at the cost of 8,500,000. The estimated useful life of asset is 10 years with no residual value. Additional information are as follow: • Starting from 31 December 20X1, the Company has adopted revaluation model for its assets valuation. As at 31 December 20X1, FV of asset is 7,200,000 with no change in remaining useful life. As at 31 December 20X4, there are some indicators of asset impairment and the recoverable amount is 3,500,000. As at 31 December 20X5, recoverable amount is 4,600,000. Prepare journal entries to record asset revaluation at 31 December 20X1, using elimination method. Prepare journal entries to record depreciation expenses and surplus transfer to retained earnings for 20X2 and 20X3. Prepare journal entries to record impairment loss (if any) at 31 December 20X4. Prepare journal entries to record reversal of impairment loss (if any) and revaluation of assets at 31 December 20X5. b) d) . . .

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A Journal Entry as on 31122011 using Elimination Method When an item of property plant and equipment ... View the full answer