Question 1 Focus Eye Bhd has adopted the revaluation model and the following information is related to its freehold land. Cost as at 31 Dec 2015Fair value as at 31 Dec 2015Fair Value as at 31 Dec 2016Freehold land XRM1,000,000RM1,200,000RM900,000Freehold Land YRM1,100,000RM800,000RM1,200,000 Required: Show the journal entries to record the surplus or deficit on revaluation for the year ended 31 December 2015 and 2016.Show the extract of the statement of profit or loss and other comprehensive income for the year ended 31 December 2015 and 2016.

The details of freehold land has been given by the company for the year ended 31st December 2015 and…

Required: Show the journal entries to record the surplus or deficit on revaluation for the year ended 31 December 2015 and 2016. Show the extract of the statement of profit or loss and other comprehensive income for the year ended 31 December 2015 and 2016.

Required: Show the journal entries to record the surplus or deficit on revaluation for the year ended 31 December 2015 and 2016. Show the extract of the statement of profit or loss and other comprehensive income for the year ended 31 December 2015 and 2016.

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter1: Accounting As A Form Of Communication

Section: Chapter Questions

Problem 1.16MCE

See similar textbooks

Related questions

Q: Use the following information for the next two (2) questions: The Malaluan Company accounts for…

A: Financial statement A financial statement refers to those prepared to ascertain a company’s…

Q: Assume Walmart acquires a tract of land on January 1, 2016, for $100,000 cash. On December 31, 2016,…

A: 2016 - Gain on Land = 150,000 - 100,000 = 50,000 2017 - Loss on Land = 150,000 - 120,000 = 30,000…

Q: Pro a land as held for sale. On December 31, 2021, the fair value less cost of disposal of the land…

A: Impairment loss can be calculated as :- Recoverable amount - carrying amount Recoverable…

Q: On 30 June 2018, HTL Bhd classifies a business segment as a disposal group for sale. The carrying…

A: Impairment loss is the result of decline in the fair market value of an…

Q: A freehold property with cost of RM3 million (land cost RM1.8 million) purchased on 1 January 2014…

A: Hello. Since your question has multiple parts, we will solve the first question for you. If you want…

Q: Q1 (Classification of Costs and Interest Capitalization) On January 1, 2021, Blair Corporation…

A: All amounts are in dollar ($).

Q: Clarke Inc. owns an investment property with the following data: |Cost - January 1, 2015 Fair value…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: An entity accounted for land using the revaluation model. On October 1, 2020, the entity classified…

A: The assets held for sale are recognized at FV less cost of disposal. Any revaluation gain on…

Q: Recipient Co. should record the asset received at

A: Where there is a exchange of asset with no commercial substance, the new asset should be recorded at…

Q: Save & Exh A company purchased land, a building, and equipment for one price of $1,650,000. The…

A: The balance sheet shows the financial position of the company by recording all the assets,…

Q: Nonchalant Company owned three investment propertien with the following details: Initial Fair value…

A: Guideline: “Since you have asked multiple question, we will solve the first question for you. If you…

Q: 1. Coral Company accounts for noncurrent assets using the cost model. On July 31, 2011, Coral…

A: Noncurrent assets: Noncurrent assets are the assets of the long-term investment made by the company…

Q: QUESTION 1 Polycarp Ltd adopts revaluation model for subsequent measurement of its intangible…

A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Question 19 Fourth company bought an FVPL investment on January 1, 2020 for a total cost P80,000. As…

A: When financial instruments revaluation or transfer from FVTPL to FVTOCI then record at fair value…

Q: Nyhiraba Limited purchased an asset on 1st January 2015 for an amount of R5 million. The asset has…

A: Lets understand the basics. As per IAS 36 "Impairment of asset", impairment arise when recoverable…

Q: Property 1 This property was purchased at a cost of R4 500 000 on 1 January 2019. An upfront payment…

A: IAS 40 deals with "Accounting treatment and disclosure with respect to Investment property." A…

Q: Mode 6- Lump Sum Acquisition 9) On April 1. 2022. Pacific Corporation purchased for P2.700.000 a…

A: Under lumpsum sale, all the assets and liabilities are transferred for one single consideration…

Q: PT Adista owns land that was purchased in cash on January 2, 2018 at a cost of IDR 1,000,000,000.…

A: There are two methods for subsequent accounting of the fixed assets; which are, Cost model and the…

Q: QUESTION 2 Excel acquired a piece of land for RM200M on 1 January x5. The land was classified as…

A: As per IAS 40, land or building can be classified as investment property if they are acquired with…

Q: Exchanges Basic steps in recording nonmonetary asset exchanges: Step 1: Record the new asset af fuir…

A: given that, Book value of asset = $260000 fair value of the asset = $300000

Q: Problem 14 League Company owns three properties which are classified as investment properties.…

A: NOTE : As per BARTLEBY guidelines, when multiple questions are given then first question is to be…

Q: XYZ, a manufacturing company, purchases a property for Ghs1m on 1 January 2016 for its investment…

A: Fixed Assets These are those assets that are bought by the company for long-term use in the…

Q: urage Hodey Inc. owns the following properties as at 31 December 2019: Property:…

A: Step 1 The three conditions that must be met before an entity can commence to capitalise borrowing…

Q: i) Company X Financial Year ends March 31. A laptop purchased 02 August 2018 at a cost of P9,500…

A: i) Cost of Laptop= P 9500 in 2018 Depreciation Rate= 40% in 2018= P3800 WDV for 2019= P5700…

Q: Question 1 Ahmed Al Balushi SAOG is planning to acquire Abdullah SAOG at a Purchase consideration of…

Q: KK owns the following properties as at 31" December 2017: Property: Fair value Land with future use…

A: IAS 40 Investment Property applies to the accounting for the property (land and/or buildings)…

Q: Ellido Ltd acquired a brand new property (land and buildings) on 1 January 2016 for GH¢40 million…

A: The question is related to Revaluation of assets and Depreciation. Land is not subject to any…

Q: On Sept 30, 2020, ABC acquired a building to earn rent through operating leases. The investment…

A: As per IAS 40- Investment property, Investment property is the land or building or both held for the…

Q: PEARS Company owned three investment properties. Details of the properties are as follows: * Fair…

A: As the Accounting policy of the company is to use Fair Value Model, at the end of each reporting…

Q: 4. N COMPANY accounted for noncurrent assets using the revaluation model. On October 1, 2017, the…

A: Gain on Disposal:- When the selling value of assets is more than the carrying or fair value of it…

Q: On December 31, 2021, the fair value was estimated at On June 30, 2021, the fair value was estimated…

A: The carrying amount is the original cost of an asset as represented in a company's books or balance…

Q: a) On January 1, 2020, Sage Inc. purchased land that had an assessed value of $349,000 at the time…

A: As posted multiple independent questions we are answering only first question kindly repost the…

Q: Property 1 This property was purchased at a cost of R4 500 000 on 1 January 2019. An upfront payment…

A: Initial recognition cost is the cost at which the property is purchased together with all direct…

Q: EIL.25 (LOS)) (Revaluation Accounting) Pengo Ltd. owns land that it purchased at a cost of V400…

A: Other Comprehensive Income= It includes only those incomes and expenses or losses which cannot be…

Q: bject: Advance finance accounting Q) An item of depreciable machinery is acquired on 1 July 2016…

A: under straight line method: Calculate the depreciation per year as follows: Depreciation expense…

Q: 7. Positivity Enterprises accounted for noncurrent assets using the revaluation model. On September…

A: As per IFRS 5 Non current assets held for sale, If an asset is measured as per revaluation model…

Q: Problem 1: Joan Company provided the following data for 2019: Value of biological asset at…

A: "Since you have asked multiple question we will solve the first question for you. If you want any…

Q: Dhofar LLC acquired an asset on 1st January 2019 for OMR 500,000 and the rate of depreciation is…

A: Replacement Cost: It is the cost which is required to replace any existing asset that is having…

Q: .3)KK Limited owns a property that is used as its head office in Pretoria. On 1 st January 2020, its…

A: 1 Explanation about revaluation surplus and its treatment Assets are revalued at the end of the…

Q: PROBLEMS Problem 23-1 (IAA) Simple Company reported the following information in relation to land:…

A: Note: Since you have posted a question with multiple sub-parts, we will solve the first three…

Q: 1. Coral Company accounts for noncurrent assets using the cost model. On July 31, 2011, Coral…

A: Asset is defined as any resource or item that assists in attracting income to the owner. Each asset…

Question

100%

Question 1

Focus Eye Bhd has adopted the revaluation model and the following information is related to its freehold land.

	Cost as at 31 Dec 2015	Fair value as at 31 Dec 2015	Fair Value as at 31 Dec 2016
Freehold land X	RM1,000,000	RM1,200,000	RM900,000
Freehold Land Y	RM1,100,000	RM800,000	RM1,200,000

Required:

Show the journal entries to record the surplus or deficit on revaluation for the year ended 31 December 2015 and 2016.
Show the extract of the statement of profit or loss and other comprehensive income for the year ended 31 December 2015 and 2016.

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1 Basic Information

VIEW

Step 2Journal entries to record the surplus /deficit on revaluation for the year ended 31 December

VIEW

Step 3 Statement of profit or loss and other comprehensive income for the year ended 2015 & 2016

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

What are the examples of fixed asset?Apakah contoh asset tetap? i. Land /Tanahii. Building /Bangunaniii. Machine/Mesiniv. Car/Kereta Select one:A.iii and iv/iii dan iv B.i,ii and iii/i,ii dan iii C.All above/ Semua di atas D.i,iii and iv/i,iii dan iv
icerca Dashboard My courses Which of these is an allowable cost of an asset under IAS 16? 1. Professional fees 2. General overheads 3. Cost of site preparation 4. Initial operating losses 5. Administration expenses 6. Decommissioning costs O a. 1, 3 and 6 O b. 1, 3 and 5 O c. 1, 2 and 6 O d. 1, 2 and 4 O Financial Reporting (level 5) (2022_23) t Y ASUS ZenBook Assessment
What amount should be recorded as initial measurement of the right of use asset? **see attached pica. 5,600,000b. 4,088,000c. 3,912,000d. 3,288,000
GAIN ON VALUATION IN RELATION TO IAS 40 INVESTMENT PROPERTY SHOULD BE TAKEN UP IN SOPL OR OCI?
How much should be recorded as the purchase price of theindividual PPE items: For items 6 to 10, identify the amount to be include as Land 6. Cost of option to the land – P20,000 7. Legal fees and other expenditures for establishing clean title– P100,000 8. Mortgage assumed: Total mortgage – P2,000,000,Remaining mortgage as of acquisition date – P 500,000 9. Real property tax not paid by seller and assumed by theentity, P50,000 due January of current year. Buyer‐entityacquired the land on April 30 of the current year. 10. Special assessment paid to the government – P300,000 11. Fence and landscaping – P500,000
"a picture On June 30, 2021, the fair value was estimated at P3,300,000 On December 31, 2021, the fair value was estimated at 1. What is the adjusted carrying amount of the land on June A Preliminary Assessment: Non cur X revaluation model. On June 30, 2021, the entity classified a At that date, the carrying amount was P2,900,000 and the C video x © Untitled design - Video x M Inbox (1,920) - 2213663@slu.edu x + A classroom.google.com/u/0/c/NDU3MTE4MZUWMDI1/a/NDgyMzE5NjA0OTM2/details Q POr NCASDO Activity.pdf Open with - O Prelimin Assigned for sale Problem 6-3 (IFRS) Add or create Candido Perez- 50 points ark as done land as held for sale. Using the 2021 Edition of Abba Companу, Clara Company, Young Company, balance of the revaluation surplus was P200,000. omments t to Candido Perez and the cost of disposal at P200,000. Write in your handwriting usin paper. Use black solution in good On December 31, 2021, the fair value was estimated P3,250,000 and the cost of disposal at P250,000.…
On January 1, 2022, Ivanhoe Inc., a construction company, leased an excavator from Oriole inc. The lease terms are as follows: Annual lease payments of $26.900 at the beginning of each year for five years At the end of the lease term the asset reverts back to the lessor and the residual value guarantee is $8.100 The incremental borrowing rate is 7% and the implicit rate in the lease is 6% (known by the lessee) Ivanhoe Inc. has a December 31 year end • • . Click here to view the factor table PRESENT VALUE OF AN ANNUITY DUE. Prepare the journal entries for 2022 for Ivanhoe Inc. Assume Ivanhoe Inc. follows IFRS. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,275. Round factor values to 5 decimal places, e.g. 1.25124. If no entry is required, select "No entry" for the account titles and enter O for the amounts)
Online teachin x n/takeAssignment/takeAssignmentMain.do?invoker3&takeAssignmentSessionLocator=&inprogress%3false еВook Discussion Question 13-6 (LO. 4) On July 16, 2020, Logan acquires land and a building for $500,000 to use in his sole proprietorship. Of the purchase price, $400,000 is allocated to the building, and $100,000 is allocated to the land. Cost recovery of $4,708 is deducted in 2020 for the building (nonresidential real estate). a. What is the adjusted basis for the land and the building at the acquisition date? Land Building b. What is the adjusted basis for the land and the building at the end of 2020? Land Building $ 40 Previous Next Check My Work 10:57 PM 28°F Clear 2/14/2022
An extract of the Asset Register of Ace Pty Ltd (“Ace”) for the 2018 - 2019 Income year isshown as follows:Asset Cost OpeningAdjustableValueMethod EffectiveLifeDecline inValue forThis PeriodClosingAdjustableValuePrinter 1,200 1,200 DiminishingValue3 years 400 800Desks 3,000 2,400 Prime Cost 10 years 300 2,100Appliances 2,600 1,040 Prime Cost 5 years 520 520All depreciable assets are 100% for business use and Ace uses a low-value pool for all eligibleassets. The closing value of the low-value pool at 30 June 2019 was $8,000. Ace purchased a camera on 20 Jan 2020 for $840.Advise Ace of the Income Tax consequences arising out of the above information for the 2019 - 2020 Income year assuming Ace is not a small business entity.
TB 02-95 Which concept should be applied when reporti... Which concept should be applied when reporting a piece of land that was bought for $50,000 five years ago, and which would probably now sell for $80,000? Multiple Choice The cost principle. The separate entity concept. The asset principle. The duality of effects.
1) What is the "Net Investment in Fixed Assets" Ending Net Fixed Assets = Question 1 of 19 -Beginning Net Fixed Assets = Question 2 of 19 +Depreciation = Question 3 of 19 Net Investment in Fixed Assets = Question 4 of 19 2) Please Calculate the "Chante in Net Working Capital" 2019 2018 Ending NWC Question Blank 5 of 19 - Question 6 of 19 = Question 7 of 19 -Beg NWC Question Blank 8 of 19 - Question Blank 9 of 19 = Question Blank 10 of 19 Change in NWC = Question Blank 11 of 19 3) Please Calculate the "Operating Cash Flow" EBIT = Question Blank 12 of 19 +Depreciation =…
Choose the appropriate definition for each term. Term Amortization Useful life Licensing right Least and latest rule Component allocation Fixed asset turnover ratio Depreciable cost Copyright Depreciation schedule Revenue expenditures 2 Definition