On 28 April 20X2, Peele Realty purchased land and building for $6.55 million and $4.69 million,...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
On 28 April 20X2, Peele Realty purchased land and building for $6.55 million and $4.69 million, respectively. The company uses the revaluation model for the land and building. Assume that the land is revalued annually. The building is revalued every two years. The fair value of the land at the end of 20X2, 20X3 and 20X4 was $6.58 million, $6.28 million and $6.75 million. The fair value of the building at the end of 20X3 was $5.05 million. The building is amortized on a straight-line basis and has a 25-year useful life. Peele takes a full year of depreciation in the year acquired. Required: 1. Prepare the journal entries under the revaluation model for the land in 20X2, 20X3 and 20X4. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) > Answer is not complete. General Journal No Date 1 31 December 20X2 Land OCI: Gain on revaluation of Land 2 31 December 20X2 P&L: Loss on revaluation OCI: Gain reversal 3 31 December 20X4 Land P&L: Loss reversal Debit Credit 30,000 30,000 300,000 300,000 470,000 470,000 x 2. Prepare the journal entries under the revaluation model for the building in 20X3, using: a. The proportionate method b. The elimination method (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Date 1 31 December 20X3 Building Accumulated depreciation OCI: Gain on revaluation Answer is not complete. General Journal 2 31 December 20X4 Depreciation expense Accumulated depreciation Debit Credit 219,565 219,565 3 31 December 20X3 Accumulated depreciation 735,200 OCI: Loss on revaluation 735,200 x Journal entry worksheet < 1 2 3 Record the $6.55 million land purchased on 28 April 20X2 if the fair value of the land at the end of 20X2 was $6.58 million. The company uses the revaluation model. Assume that the land is revalued annually. Note: Enter debits before credits. Date 31 December 20X2 Land General Journal OCI: Gain on revaluation of Land Debit Credit > Record entry Clear entry View general journal Journal entry worksheet < 1 2 3 Record the gain or loss on revaluation of land if the fair value of the land at the end of 20X3 was $6.28 million. Note: Enter debits before credits. Date 31 December 20X2 General Journal Debit Credit P&L: Loss on revaluation OCI: Loss on revaluation of Land Record entry Clear entry View general journal > Journal entry worksheet < 1 2 3 Record the gain or loss on revaluation of land if the fair value of the land at the end of 20X4 was $6.75 million. Note: Enter debits before credits. General Journal Debit Credit Date 31 December Land 20X4 P&L: Loss reversal Record entry Clear entry View general journal Journal entry worksheet 1 2 3 4 Record the $4.69 million building purchased on 28 April 20X2 if the fair value of the building at the end of 20X3 was $5.05 million under proportionate method. The company uses the revaluation model. The building is revalued every two years. Note: Enter debits before credits. Date 31 December Building 20X3 General Journal Accumulated depreciation OCI: Gain on revaluation Debit Credit Record entry Clear entry View general journal Journal entry worksheet < 1 2 3 4 Record the depreciation expense on the building purchased under proportionate method. The building is amortized on a straight-line basis and has a 25-year useful life. The company takes a full year of depreciation in the year acquired. Note: Enter debits before credits. Date General Journal 31 December 20X4 Depreciation expense Accumulated depreciation Debit Credit 219,565 219,565 Record entry Clear entry View general journal Journal entry worksheet 1 2 3 4 Record the $4.69 million building purchased on 28 April 20X2 if the fair value of the building at the end of 20X3 was $5.05 million under elimination method. The company uses the revaluation model. The building is revalued every two years. Note: Enter debits before credits. Date 31 December General Journal Accumulated depreciation 20X3 OCI: Loss on revaluation Debit Credit 735,200 735,200 View general journal Record entry Clear entry On 28 April 20X2, Peele Realty purchased land and building for $6.55 million and $4.69 million, respectively. The company uses the revaluation model for the land and building. Assume that the land is revalued annually. The building is revalued every two years. The fair value of the land at the end of 20X2, 20X3 and 20X4 was $6.58 million, $6.28 million and $6.75 million. The fair value of the building at the end of 20X3 was $5.05 million. The building is amortized on a straight-line basis and has a 25-year useful life. Peele takes a full year of depreciation in the year acquired. Required: 1. Prepare the journal entries under the revaluation model for the land in 20X2, 20X3 and 20X4. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) > Answer is not complete. General Journal No Date 1 31 December 20X2 Land OCI: Gain on revaluation of Land 2 31 December 20X2 P&L: Loss on revaluation OCI: Gain reversal 3 31 December 20X4 Land P&L: Loss reversal Debit Credit 30,000 30,000 300,000 300,000 470,000 470,000 x 2. Prepare the journal entries under the revaluation model for the building in 20X3, using: a. The proportionate method b. The elimination method (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Date 1 31 December 20X3 Building Accumulated depreciation OCI: Gain on revaluation Answer is not complete. General Journal 2 31 December 20X4 Depreciation expense Accumulated depreciation Debit Credit 219,565 219,565 3 31 December 20X3 Accumulated depreciation 735,200 OCI: Loss on revaluation 735,200 x Journal entry worksheet < 1 2 3 Record the $6.55 million land purchased on 28 April 20X2 if the fair value of the land at the end of 20X2 was $6.58 million. The company uses the revaluation model. Assume that the land is revalued annually. Note: Enter debits before credits. Date 31 December 20X2 Land General Journal OCI: Gain on revaluation of Land Debit Credit > Record entry Clear entry View general journal Journal entry worksheet < 1 2 3 Record the gain or loss on revaluation of land if the fair value of the land at the end of 20X3 was $6.28 million. Note: Enter debits before credits. Date 31 December 20X2 General Journal Debit Credit P&L: Loss on revaluation OCI: Loss on revaluation of Land Record entry Clear entry View general journal > Journal entry worksheet < 1 2 3 Record the gain or loss on revaluation of land if the fair value of the land at the end of 20X4 was $6.75 million. Note: Enter debits before credits. General Journal Debit Credit Date 31 December Land 20X4 P&L: Loss reversal Record entry Clear entry View general journal Journal entry worksheet 1 2 3 4 Record the $4.69 million building purchased on 28 April 20X2 if the fair value of the building at the end of 20X3 was $5.05 million under proportionate method. The company uses the revaluation model. The building is revalued every two years. Note: Enter debits before credits. Date 31 December Building 20X3 General Journal Accumulated depreciation OCI: Gain on revaluation Debit Credit Record entry Clear entry View general journal Journal entry worksheet < 1 2 3 4 Record the depreciation expense on the building purchased under proportionate method. The building is amortized on a straight-line basis and has a 25-year useful life. The company takes a full year of depreciation in the year acquired. Note: Enter debits before credits. Date General Journal 31 December 20X4 Depreciation expense Accumulated depreciation Debit Credit 219,565 219,565 Record entry Clear entry View general journal Journal entry worksheet 1 2 3 4 Record the $4.69 million building purchased on 28 April 20X2 if the fair value of the building at the end of 20X3 was $5.05 million under elimination method. The company uses the revaluation model. The building is revalued every two years. Note: Enter debits before credits. Date 31 December General Journal Accumulated depreciation 20X3 OCI: Loss on revaluation Debit Credit 735,200 735,200 View general journal Record entry Clear entry
Expert Answer:
Related Book For
Intermediate Accounting Volume 1
ISBN: 9781260881233
8th Edition
Authors: Thomas H. Beechy, Joan E. Conrod, Elizabeth Farrell, Ingrid McLeod-Dick, Kayla Tomulka, Romi-Lee Sevel
Posted Date:
Students also viewed these finance questions
-
On 28 April 20X2, Peele Realty purchased land and building for $4.65 million and $2.79 million, respectively. The company uses the revaluation model for the land and building. Assume that the land is...
-
Hazzizzi Ltd Trial balance as at March 31, 2023 Trade receivables 22,800,000 Trade payables 6,100,000 Provision for bad debt 7,600,000 Bank 2,100,000 Cash in hand 928,000 Petty cash 203,000 Interest...
-
Show that is one-to-one and find f(x) = J2 1 + 1 dt
-
An investigator has data consisting of heights of daughters and the heights of the corresponding mothers and fathers. She wants to analyze the data to see the effect that the height of the mother and...
-
Bar BDE is pinned to two links, AB and CD. At the instant shown the angular velocities of link AB, link CD and bar BDE are AB, CD, and BDE, respectively. Which of the following statements concerning...
-
The 2014-T6 aluminum bar \(A B\) can slide freely along the guides mounted on the rigid crash barrier. Determine the maximum speed \(v\) of the \(10-\mathrm{Mg}\) railcar without causing the bar to...
-
The following information pertains to Family Video Company. 1. Cash balance per bank, July 31, $7,263. 2. July bank service charge not recorded by the depositor $28. 3. Cash balance per books, July...
-
Identify an example of an ethical dilemma in the healthcare workplace, describe the two or more values that are in conflict and why they are in conflict, and describe what steps a manager might take...
-
Post a brief explanation of one major impact neuroscience has had on the field of cognitive psychology. Explain how neuroscience might influence social change. Then research one question related to...
-
Stock #1 has a standard deviation of 55 percent. Stock #2 has a standard deviation of 75 percent. You invest 48 percent of your money in Stock #1 and the rest in Stock #2. If there were NO benefit to...
-
Find the after-tax return to a corporation that buys a share of preferred stock at $35, sells it at year-end at $35, and receives a $4 year- end dividend. The firm is in the 30% tax bracket (Round...
-
Chandler Packaged Treats (CPT) sells a specialty pet food to pet stores. CPT management prides itself on its scientific management methods. Applying those methods, the controller estimates the...
-
In the pursuit of a comprehensive understanding of the economic landscape, this assignment aims to analyse the economic status of regional Australian Indigenous communities. The focal point will be...
-
On May 1, 2022, Bancroft Corporation has current assets of $1,000,000 and current liabilities of $500,000. If Bancroft purchases a piece of equipment on May 30, 2022 for $100,000 cash, what will be...
-
Write a paper about finance discussion in which describe how profit is reported via concepts of accounting
-
The vapor pressure of the liquid NH, is measured at different temperatures. The following vapor pressure data are obtained. Temperature, K P, mmHg 217.1 223.4 234.7 588.1 Calculate the enthalpy of...
-
After an analysis of the borrowed funds portion of the financial management process, an auditor might choose not to perform many tests of controls but will instead concentrate on substantive tests of...
-
Consider Manny Corp., our military outfitting operation from Chapter 10. Its financial data is reprinted here for convenience. a. If you were the auditor assigned to perform substantive analytical...
-
Following are some routine procedures for the audit of payroll (discussed in the Appendix). For each procedure, (1) state whether it is a test of controls or a substantive test, (2) state which...
Study smarter with the SolutionInn App