Blossom Ltd. purchased a building on January 1, 2018 for $15,240,000. Blossom accounted for this asset...

 

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Blossom Ltd. purchased a building on January 1, 2018 for $15,240,000. Blossom accounted for this asset using the revaluation model and revalued the building every two years. The building was estimated to have a useful life of 30 years with no residual value, and Blossom used straight-line depreciation. On December 31, 2019, the building had a fair value of $14,392,000. On December 31, 2021, the building had a fair value of $13,106,400. Prepare the journal entries on the books of Blossom Ltd. to revalue the building on December 31, 2019 and December 31, 2021 using the asset adjustment method. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Round answer to 0 decimal places, e.g. 5,275. Record entries in the order presented in the problem.) Blossom Ltd. purchased a building on January 1, 2018 for $15,240,000. Blossom accounted for this asset using the revaluation model and revalued the building every two years. The building was estimated to have a useful life of 30 years with no residual value, and Blossom used straight-line depreciation. On December 31, 2019, the building had a fair value of $14,392,000. On December 31, 2021, the building had a fair value of $13,106,400. Prepare the journal entries on the books of Blossom Ltd. to revalue the building on December 31, 2019 and December 31, 2021 using the asset adjustment method. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Round answer to 0 decimal places, e.g. 5,275. Record entries in the order presented in the problem.)

Answer rating: 100% (QA)

Date Account Titles Explanation Debit Credit Remarks 31Dec19 Accumulated Depreciation 1016000 152400... View the full answer