Geo Sdn. Bhd. has three pieces of freehold lands and 2 units of buildings which were...

 

  

Transcribed Image Text:

Geo Sdn. Bhd. has three pieces of freehold lands and 2 units of buildings which were located at various locations. Detail information of the assets are as follows: Assets Location Puchong Shah Alam Terengganu Puchong Shah Alam Land A Land B Land C Building A Building B Additional information: (i) The company used revaluation model to account for its non-current assets. (ii) Information on land revalued amount by professional valuers are provided below Fair value on 30 June 2021 Assets Carrying Fair value amount on 30 June 2017 on 30 June 2019 Fair value on 30 June 2020 RM800,000 RM900,000 RM460,000 Land A RM900,000 RM900,000 RM550,000 RM880,000 Land B Land C RM750,000 RM820,000 RM500,000 RM700,000 RM400,000 (ii) Building A was acquired by Geo Bhd. on 1 April 2020 at the cost of RM500,000. The building's remaining useful life was 40 years. The building was revalued on 30 June 2021 at RM650,000. Building B was acquired by Geo Bhd. on 1 May 2021 at a cost of RM600,000. The building's remaining useful life was 50 years The company used straight line method and monthly basis to account for its buildings. You are required to prepare: (a) Journal entries to record the above land revaluations. (Notes: Narrations are not required, show all workings). (10 marks) (b) Journal entries to record all transactions related to buildings for year ended 30 June 2020 and 30 June 2021. (Notes: Narrations are not required, show all workings). (5 marks) (c) Extract Statement of Profit or Loss and Other Comprehensive Income for the year ended 30 June 2019, 2020 and 2021. (10 marks) Geo Sdn. Bhd. has three pieces of freehold lands and 2 units of buildings which were located at various locations. Detail information of the assets are as follows: Assets Location Puchong Shah Alam Terengganu Puchong Shah Alam Land A Land B Land C Building A Building B Additional information: (i) The company used revaluation model to account for its non-current assets. (ii) Information on land revalued amount by professional valuers are provided below Fair value on 30 June 2021 Assets Carrying Fair value amount on 30 June 2017 on 30 June 2019 Fair value on 30 June 2020 RM800,000 RM900,000 RM460,000 Land A RM900,000 RM900,000 RM550,000 RM880,000 Land B Land C RM750,000 RM820,000 RM500,000 RM700,000 RM400,000 (ii) Building A was acquired by Geo Bhd. on 1 April 2020 at the cost of RM500,000. The building's remaining useful life was 40 years. The building was revalued on 30 June 2021 at RM650,000. Building B was acquired by Geo Bhd. on 1 May 2021 at a cost of RM600,000. The building's remaining useful life was 50 years The company used straight line method and monthly basis to account for its buildings. You are required to prepare: (a) Journal entries to record the above land revaluations. (Notes: Narrations are not required, show all workings). (10 marks) (b) Journal entries to record all transactions related to buildings for year ended 30 June 2020 and 30 June 2021. (Notes: Narrations are not required, show all workings). (5 marks) (c) Extract Statement of Profit or Loss and Other Comprehensive Income for the year ended 30 June 2019, 2020 and 2021. (10 marks)

Answer rating: 100% (QA)

a c Jounrnal Entry for Land Date Particulars Debit Credit 30062019 Land A Dr 250000 To Reva... View the full answer