I need help with that Accounting Question given. E11.16 (LO3) (Tmpairment) Presented below is inforrelated to evvie o wned by Suarez Company atDec.37g2020Cost$9000,000Accum Deerec to dateEXPected future net Cash flowsT,o00g00Fair Value480g.000Assume that Suarez Will continue toyse this asset in the future. AS ofDec 31,2020 the eauir has aremaining useful ife of 4 Years.InstrutionsPrepare the sournal entry (if any) to record theim Pairment of the asset in the future.b. PrePare the joumal entry to record deprec expensefor 201ta The fair Value of the eqiuir at Dec.3I, 20tyis $5,109.000. PrePace the jourmal entry (if any)necessary to record this increase in fair value. :7

Impairment loss = Carrying amount - Recoverable amount Recoverable amount is the higher of value in…

Answered: E11.16 (LO3) (Tmpairment) Presented…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The following information relates to Samson Engineering as at 30 June 2023: RProfit for the year180 000Drawings50 000Property920 000Long-term borrowings510 000Trade receivables380 000Plant and machinery250 000Trade payables180 000Short-term borrowings260 000Fixtures and fittings90 000Inventories420 000Equity at 1 July 20221 175 000Cash45 000Motor vehicles150 000 RequiredCalculate the following:The total non-current assets The total current assetsThe total assets
On June 30, 2021, ABC Corp. purchased a P3,000,000 face valuebonds with P2,925,067.05 cash. The interest rate is 10%, payablesemiannually every June 30 and Dec. 31. The remaining term as ofacquisition date is three years. ABC purchased it for bothcontractual cashflows and trading purpose, and hence initiallydesignated it as FA‐FV‐OCI. The effective interest rate is 11%. Withinthe year 2022, there was a change in the purpose of holding theinvestment to maturity. As of the end of the years 2022 and 2023,the bonds were valued at P2,950,000 and P2,975,000 respectively.1. What is the compound journal entry to record thereclassification and update the related accounts? Includethe date and explanation.
On June 30, 2021, ABC Corp. purchased a P3,000,000 face valuebonds with P2,925,067.05 cash. The interest rate is 10%, payablesemiannually every June 30 and Dec. 31. The remaining term as ofacquisition date is three years. ABC purchased it for bothcontractual cashflows and trading purpose, and hence initiallydesignated it as FA‐FV‐OCI. The effective interest rate is 11%. Withinthe year 2022, there was a change in the purpose of holding theinvestment to maturity. As of the end of the years 2022 and 2023,the bonds were valued at P2,950,000 and P2,975,000 respectively. What is the compound journal entry to record thereclassification and update the related accounts? Includethe date and explanation.
SPK NOW Company owned the following investments at year-end before fair value adjustments and amortization: FA@FVTPL, P 600,000; FA@FVTOCI, P350,000; FA@AC, P470,000. What total amount of noncurrent assets related to the investments should be reported at year-end? a.P950,000 b.P1,420,000 c. P470,000 d. P820,000
4. YOU CAN DO IT Corporation has equipment with a carrying value of 450,000 on December 31, 2021. The following information was available on December 31, 2021: · Expected net cash flows (undiscounted)- P420,000 · Expected net cash flows discounted at 7%- P400,000 · Fair value, using the assets with other assets- P415,000 · Fair value, assuming the assets are sold stand-alone- P428,000 What is the impairment loss that the Company must report in its 2021 income statement for this equipment? CHOICES: P30,000 P35,000 P22,000 P50,000
The following information is available for Carla Vista Company’s patents: Cost $3190000 Carrying amount 1670000 Expected future net cash flows 1355000 Fair value 1175000 Carla Vista would record a loss on impairment of ?
Ireland Airways recently reported the following items at fair value in recent annual report (in millions). Account Amount Source of Input Cash and Cash equivalents $11,837 Identical Asset /Active Market Commercial Paper 135 Similar Asset/Active Market Other Available for Sale Securities 228 Identical Asset/Active Market Option contracts 109 Significant unobservable inputs Time Deposits 550 Identical Asset/Inactive Market Certificates of Deposit 125 Similar Asset/Inactive Market What is the total dollar amount of level 1 assets? What is the total dollar amount of level 2 assets? What is the total dollar amount of level 3 assets?
Toro Co. has equipment with a carrying amount of$700,000. The expected future net cash flows from theequipment are $705,000, and its fair value is $590,000.The equipment is expected to be used in operations inthe future. What amount (if any) should Toro report asan impairment to its equipment?
I. Non-cash assets amounted toa. P125,000b. P140,000c. P130.000d. P145,000
Use the information below to answer questions 3, 4, 5 and 6. 2020 2021 Sales$5,300 $5,900 Depreciation750850COGS24002900Interest180196Cash200500Accts Receivables200400Notes Payable800550Long-term debt15001950Net fixed assets30003500Accounts Payable250400Inventory700900Dividend payout30%30%Tax rate35%30% What is the ROE for 2021?
Dr.Cr.(GH₵)(GH₵)Stated capital310Income surplus at 1 January 2017456Inventory at 1 January 2017236Turnover1,468Purchases856Salaries46Directors salaries (admin expense)116Land & building at cost550Plant & equipment at cost578Land & building- accumulated depreciation as at 1 January 2017154Plant & equipment –accumulated depreciation as at 1 January 2017266Bank interest received6Sundry expenses56Trade receivables110Trade payables122Accruals42Cash at bank43Dividends paid36Administrative expenses183Interest paid142,8242,824The following information is also relevant:(1) Inventory at 31st December 2017 is GH₵256(2) The tax liability for the year is estimated to be 20% of the profit before tax.4(3) The original cost of land and buildings is made up of GH₵100 land and GH₵450 buildings. Buildings are used in administration and depreciation is charged on a straight line basis over the estimated useful life of 50 years.(4) Plant & equipment are used in distribution and…
Refer to the situation described in BE 11–16. Assume that SCC’s fair value of $40 million approximates fairvalue less costs to sell and that the present value of SCC’s estimated future cash flows is $41 million. If WebHelper prepares its financial statements according to IFRS and SCC is considered a cash-generating unit, whatamount of impairment loss, if any, should WebHelper recognize?

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS