Q5. PK Ltd acquires a block of land on 1 January 2017 for $200 000 in cash. Due to increased housing demand in the area, the land has a fair value of $290 000 on 1 January 2018.However, the market value falls to $140 000 on 30 June 2019. Write the journal entries needed.
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Q5. PK Ltd acquires a block of land on 1 January 2017 for $200 000 in cash. Due to increased housing demand in the area, the land has a fair value of $290 000 on 1 January 2018.However, the market value falls to $140 000 on 30 June 2019. Write the
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- Q6. Land was acquired for $200 000 on 1 July 2017. On 30 June 2018 it has a fair value of $150 000. On 30 June 2020, due to increased population, the land is considered to have a fair value of $270 000. Write the journal entries needed.On October 1, 2024, a company purchased a piece of land by agreeing to pay the seller $450,000 in two years. If the company had borrowed the money from a bank to pay the seller immediately, management estimates the bank would have required interest of 9% For what amount should the company record the land on the date of purchase (rounded to the nearest dollar)? (PV of $1. and PVA of $1) Multiple Choice O O $450,000 $369.000 $412,844 $378,756Aber Company buys land for $145,000 in 2021. As of 3/31/22, the land has appreciated in value to $151,000. On 12/31/22, the land has an appraised value of $155,400. By what amount should the Land account be increased in 2022? Group of answer choices $6,000 $4,400 $0 $10,400
- On 1 April 2014, Live Land Limited acquired a piece of freehold land at Jalan Sultan at acost $4,980,000. The acquisition was financed through a bank loan.The land was subsequently revalued to $5,100,000 on 1 October 2017.On 31 March 2019, the land was sold for $6,250,000 cash.Required:Prepare all the necessary journal entries to record the following:(a) Purchase of land on 1 April 2014. (b) Revaluation of land on 1 October 2017. (c) Disposal of land on 31 March 2019.DO NOT GIVE ANSWER IN IMAGE FORMAT On the 1st January 2018, Alpha Company sells a building to Omega Ltd for £1,000,000 cash. The carrying amount of the building prior to the sale was £750,000. Alpha arranges to lease the building back for 5 years at £150,000 per annum, payable in arrears. The remaining useful life of the building is 25 years. The transaction satisfies the performance obligations in IFRS 15, so will be accounted for as a sale and leaseback transaction. At the date of sale, the fair value of the building was £900,000, and the implied interest rate is 10%. In relation to Alpha Company: (a) How much of the lease liability relates to the actual terms of the lease, and how much relates to additional financing received? (b) What is the right-of-use value of the building? (c) What is the value of the gain on the transfer of the rights transferred due to the selling price being higher than the fair valueCarey Company buys land for $50,000 on 31/12/2016 . As of 31/3/2017, the land has appreciated in value to $50,700. On 31/12/2017, the land has an appraised value of $51,800. By what amount should the Land account be increased in 2017? Select one: on a. $1,100 b. $700 C. $0 d. $1,800 Fir e. The answer does not exist Tim IBA
- Carey Company buys land for $50,000 on 31/12/2016 . As of 31/3/2017, the land has appreciated in value to $50,700. On 31/12/2017, the land has an appraised value of $51,800. By what amount should the Land account be increased in 2017? Select one: a. $1,100 b. $700 C. $0 d. $1,800 e. The answer does not exist4. Prepare journal entry on January 1, 2027 to record the return of the machinery to the lessor. Assume thefair value of the asset is P300,0001.2. KK Limited owns a property that is used as its head office in Pretoria. On 1st January 2020, its carrying value was R20 million and its remaining useful life was 20 years. On 1st July 2020, the business recognized cheaper premises found for use as the head office. It was therefore decided to lease the property under an operating lease. The property was valued by a qualified professional who assessed the property’s value as R21 million on 1st July and R21.6 million on 31st December 2020. Explain the accounting treatment of the property in the financial statements for the year ended 31st December 2020. (Hint: Income statement and SOFP extract including calculations
- i) Company X Financial Year ends March 31. A laptop purchased 02 August 2018 at a cost of P9,500 was disposed off in January 2020 for P6800. Assuming the organisation follows local GAAPS on depreciation, provide the Journal Entries for this transaction. Outline all assumptions used. (ii) The following in being considered: Purchase of an office building worth P1M from unrestricted funding. Currently, the office building is on a 2-year lease, with rentals of BWP22,000 per month. 11 Provide your recommendations to the Finance Manager. What would be the possible effect on the Financial Health of the organisation if these transactions are approved (iii) List any key financial controls for an NGO and why these are important. (iv) Company X’s year-end is March 31. It is now April 4. A staff member asks you to process an unpaid invoice with details as follows: The invoice is for bus transportation in the amount of P800 and is dated April 2. The invoice indicates the charges relate to…Carey Company buys land for $50,000 on 31/12/2016. As of 31/3/2017, the land has appreciated in value to $50,700. On 31/12/2017, the land has an appraised value of $51,800. By what amount should the Land account be increased in 2017? Select one: a. $1,100 b. $1,800 C. $0 d. $700Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the purchase of the printer impacts not only depreciation expense each year but also the assets book value. What amount will be recorded as depreciation expense each year, and what will the book value be at the end of each year after depreciation is recorded?