Carla Vista Motels Inc. owns a motel that it had purchased on January 1, 2023, for $5.10 million cash and is accounted for in a separate account, classified as "Buildings. The company is using the revaluation model to account for its buildings and revalues them annually. Aden uses straight-line depreciation over the asset's 15-year useful life with no residual value. The asset's fair value was equal to its carrying amount on Dec. 31, 2023, and was $5,050,000 on Dec. 31, 2024. Assuming Carla Vista uses the proportionate method to adjust for revaluation, prepare all required journal entries for 2023 and 2024. (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. List all debit entries before credit entries. Round answers to 0 decimal places, eg. 5,275. Do not round Intermediate calculations.) Date January 1, 2023 Account Titles and Explanation Debit Credit
Carla Vista Motels Inc. owns a motel that it had purchased on January 1, 2023, for $5.10 million cash and is accounted for in a separate account, classified as "Buildings. The company is using the revaluation model to account for its buildings and revalues them annually. Aden uses straight-line depreciation over the asset's 15-year useful life with no residual value. The asset's fair value was equal to its carrying amount on Dec. 31, 2023, and was $5,050,000 on Dec. 31, 2024. Assuming Carla Vista uses the proportionate method to adjust for revaluation, prepare all required journal entries for 2023 and 2024. (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. List all debit entries before credit entries. Round answers to 0 decimal places, eg. 5,275. Do not round Intermediate calculations.) Date January 1, 2023 Account Titles and Explanation Debit Credit
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter22: Accounting For Changes And Errors.
Section: Chapter Questions
Problem 11E: On January 1, 2014, Klinefelter Company purchased a building for 520,000. The building had an...
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Transcribed Image Text:Carla Vista Motels Inc. owns a motel that it had purchased on January 1, 2023, for $5.10 million cash and is accounted for in a separate
account,classified as "Buildings. The company is using the revaluation model to account for its buildings and revalues them annually.
Aden uses straight-line depreciation over the asset's 15-year useful life with no residual value.
The asset's fair value was equal to its carrying amount on Dec. 31, 2023, and was $5,050,000 on Dec. 31, 2024.
Assuming Carla Vista uses the proportionate method to adjust for revaluation, prepare all required journal entries for 2023 and 2024.
(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. List all debit entries before credit entries. Round answers to 0 decimal places, eg. 5,275. Do
not round Intermediate calculations.)
Date
January 1, 2023
December 31, 2023
December 31, 2024
December 31, 2024
Account Titles and Explanation
(To record 2024 depreciation)
Debit
Credit
Transcribed Image Text:(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 List all debit entries before credit entries. Round answers to O decimal places, eg. 5,275. Do
not round Intermediate calculations.)
Date
January 1, 2023
December 31, 2023
December 31, 2024
December 31, 2024
Account Titles and Explanation
(To record 2024 depreciation)
(To adjust the Buildings account to fair value)
Debit
Credit
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